Book Value         

Book Value and Price to Book Ratio (P/B)

Book Value

Book value is a basic measure of a company's worth, simply calculated by subtracting the company's liabilities from its assets. If a company sold all of its assets and paid off its liabilities, the book value is the amount that is left.

Companies are generally valued by the flow of earnings they can generate in the future, which is generally much higher than book value for growth companies.

Book Value is often important to value investors looking for bargain companies. They may look at book value per share, which is calculated by dividing book value by the number of outstanding shares. They also look at Price to Book Ratio (P/B).

Price to Book Ratio (P/B)

The Price to Book Ratio is calculated by dividing share price by the book value per share.

P/B = Share Price / Book Value Per Share

A low P/B can indicate a bargain stock to a value investor.

When you are analyzing potential option positions, it helps to have a computer program like Option-Aid that swiftly calculates volatility impacts, probabilities, statistics, and other parameters of interest. These programs can pay for themselves with the first trade that they help you with.

Get FREE Option Tips

The Option Trading Tips Newsletter is published by MindXpansion, the developers of Option-Aid. This newsletter gives you information for maximizing your profits in options trading, including option strategies and market indicators. Fill in the following information to subscribe to this FREE service.

  Email:    
  
  How you were referred to Us?   
			      
			Friend
			Google
			Yahoo
			MSN
			Ask
			Ad
			Other Link
			Other
 			
 

Buy Option-Aid Today and Maximize Your Profits!

       As you start using this valuable option software program and become familiar with the vast amount of information it puts at your fingertips, it quickly becomes an indispensable tool for evaluating option positions.

Information is the Key to Increasing Your Wealth

       Option-Aid is a great trading tool for playing out "what-if" scenarios to maximize your profits and minimize your losses. It has many features to give you the Trader's Advantage.

       Buy it today! Profits from your first position can more than pay for the program. Your order will be placed through a secure server.

       It will change your future! Satisfaction guaranteed. Order it now!

Related financial Sites:
Valuation of Company Options
Option Posting Service for Companies
Valuation of Employee Options
Forex Trading Resources