A stock that has a low price-to-earnings ratio and a low price-to-book ratio is an indicator of a stock that is expected to have slow or negative growth in earnings and a low return on common stockholders' equity.

Question

Quizplus · Accepted Answer

A low price-to-earnings ratio and a low price-to-book ratio indicate that the stock is undervalued, which means that it is expected to have higher growth in earnings and a higher return on common stockholders' equity in the future.

A Stock That Has a Low Price-To-Earnings Ratio and a Low