The market/book (M/B)ratio tells us how much investors are willing to pay for a dollar of accounting book value.In general,investors regard companies with higher M/B ratios as less risky and/or more likely to enjoy higher growth in the future.

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This is because a higher M/B ratio indicates that investors are willing to pay more than the accounting book value for a company's assets, which can signify confidence in the company's future prospects for growth and profitability. It is also often interpreted as an indication of the market's perception of a company's risk level.

The Market/book (M/B)ratio Tells Us How Much Investors Are Willing