If a company has a price to book value ratio that is less than one this implies that future expected return on equity is less than required return on equity.

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A price to book value ratio less than one can be an indicator that the market is valuing the company lower than its actual book value. This can imply that the future expected return on equity is lower than the required return on equity, as investors are not willing to pay a premium for the company's equity.

If a Company Has a Price to Book Value Ratio