Equity Valuation

Price-to-Book Ratio

Definition

What is Price-to-Book Ratio?

Example in practice

A bank at ₦15 with ₦10 book value per share trades at 1.5 times book.

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Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Cash generated or used by a company's core operations.

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