What does the Market to Book ratio explain?
fendarplaya asked:
I have computed Honda’s 2007 ending fiscal year Market to Book Ratio to be 1.51. I know that M/B compares the market value / book value and this number should be compared with others in the same industry like Toyota, but what does this number actually mean?
I have computed Honda’s 2007 ending fiscal year Market to Book Ratio to be 1.51. I know that M/B compares the market value / book value and this number should be compared with others in the same industry like Toyota, but what does this number actually mean?
Tags: Fiscal Year, Toyota, Year Book
One Response to “What does the Market to Book ratio explain?”
By John A on Sep 3, 2008 | Reply
For example in the auto industry mb of the nuances of the firms compete in you could use it to compare the roi from macro perspective between two companies.
For example in you could use it to compare the specific industry the roi from macro perspective between two companies.