Core Metrics
BeginnerWhat is the P/B ratio?
P/B is market value divided by net assets. It compares stock price to the book value on the balance sheet.
Quick Definition
P/B ratio = Market Price ÷ Book Value Per Share. It compares what investors pay to what the company is worth on paper. P/B below 1 may signal undervaluation.
Use this concept with tools
Inflation-adjusted Return
Nominal return vs purchasing-power return.
CAGR
Calculate Compound Annual Growth Rate (CAGR) from start and end values. Convert between annualized returns and final investment amounts. Free CAGR calculator.
Compound Interest
Calculate compound interest growth with recurring contributions. See year-by-year balance breakdowns, total gains, and the power of compounding over time. Free online calculator.
Investor quotes to remember
“If you don't keep learning, others will surpass you.”
“The most dangerous words in investing are 'this time is different'.”
“I only bet when the odds are clearly in my favor.”
“Knowing what you don't know is more important than knowing what you do.”
Related concepts
What is the P/E ratio?
P/E ratio = Share Price ÷ Earnings Per Share. It shows how much investors pay for each dollar of profit. A high P/E implies high growth expectations.
What is debt-to-asset ratio?
Debt-to-asset ratio = Total Liabilities ÷ Total Assets. A ratio above 70% often signals high leverage and elevated financial risk. Compare within the same industry for meaningful insight.
What does a balance sheet tell me?
A balance sheet is a snapshot: Assets = Liabilities + Shareholders' Equity. Use it to assess leverage (how much debt?), liquidity (can it pay bills?), and capital structure.