Market-to-book ratio can be calculated by take the market value of equity per share and dividing by the book value per share or taking the market capitalization and dividing by the book value of shareholders' equity.

Question

Quizplus · Accepted Answer

The market-to-book ratio can indeed be calculated either by dividing the market value of equity per share by the book value per share or by dividing the total market capitalization by the total book value of shareholders' equity, providing a measure of how the market values the company relative to its book value.

Market-To-Book Ratio Can Be Calculated by Take the Market Value