Hi fellow buyers,
This is Charlie Tian once again. In my past films, I talked about the price tag-earnings ratio and the price tag-gross sales ratio, and in this video I want to talk about the price tag-guide ratio. The price tag-guide ratio actions the stock price tag relative to the internet assets of the firm.
Right here the internet assets usually means the total assets subscribed to the total liability of the firm. It matters for the valuation by guide ratio in terms of the fairness of the firm. This is why the ratio is determined by price tag