Homework Answers
D. Below average P/B ratios
A value stock is a stock which trading at lower price relative to its fundamental performance. Generally, a value stock has following features:
- High dividend yield
- Low P/E ratio
- Low P/B ratio
P/B ratio is ratio of Market price of stock and Book price of stock.
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
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