The market-to-book ratio is measured as:

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The market-to-book ratio is calculated by dividing the market value of equity per share by the book value of equity per share. This ratio measures the market value of a company in relation to its book value, which is the difference between the company's total assets and total liabilities. A high market-to-book ratio indicates that investors are willing to pay more for a company's shares than the book value of its assets, which suggests that the company has strong growth prospects or intangible assets that are not reflected in its book value.

The Market-To-Book Ratio Is Measured As