Book To Market Ratio

Business, Legal & Accounting Glossary

Definition: Book To Market Ratio

Book To Market Ratio

Full Definition of Book To Market Ratio

A stock’s book value divided by its market value. Book value is calculated from the company’s balance sheet, while market value is based on the price of its stock. A ratio above 1 indicates a potentially undervalued stock, while a ratio below 1 indicates a potentially overvalued stock. Technology companies and other companies in industries which do not have a lot of physical assets tend to have low book to market ratios.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Book To Market Ratio. Payroll & Accounting Heaven Ltd. November 29, 2021
Chicago Manual of Style (CMS):
Book To Market Ratio. Payroll & Accounting Heaven Ltd. (accessed: November 29, 2021).
American Psychological Association (APA):
Book To Market Ratio. Retrieved November 29, 2021, from website:

Definition Sources

Definitions for Book To Market Ratio are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.