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In this episode of Her Money Revolution, Angela Brooks, CFP®, takes a strategic look at the Price-to-Book (P/B) ratio—an essential metric in the value investor’s toolkit. Whether you're just starting to build your portfolio or refining your investment strategy, understanding the P/B ratio can help you better evaluate whether a stock is undervalued, overvalued, or priced fairly based on its net assets.

Angela explains how the P/B ratio is calculated, when it’s most useful (especially for asset-heavy companies like banks and manufacturers), and why it’s important to always dig deeper than the number itself. She also discusses how to pair the P/B ratio with complementary metrics like Return on Equity (ROE) and Price-to-Earnings (P/E) to make more informed, confident investment decisions.

With clear examples and practical insights, this episode will give you the tools to start identifying stronger value opportunities and avoid common missteps in stock evaluation.

Tune in now!

Episode Highlights:

  • What the Price-to-Book (P/B) ratio measures and how to calculate it
  • When a low P/B ratio might indicate a strong value—or a struggling company
  • Why the P/B ratio is most effective for companies with significant physical assets
  • How to use the P/B ratio alongside Return on Equity (ROE) and P/E ratios
  • A real-world comparison of companies to illustrate the impact of these metrics
  • Best practices for screening value stocks and comparing within industries
  • Key considerations before making investment decisions based on P/B

Connect with Angela:

Website: https://hermoneyrevolution.com/

Instagram: https://www.instagram.com/hermoneyrevolution/

Facebook: https://www.facebook.com/profile.php?id=61561348149519

Financial Resources: https://hermoneyrevolution.com/resources

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27 episodes