Price to book ratio has importance in financials. In other businesses if the business generates high ROE/ROCE, price to book is likely to be higher.
Deep value investors often use it as one of the parameters to assess cheapness of the stock…
Read the chapter on Book value in One up on wall street and you won’t need to ask these questions. In fact if you read the whole book (preferably multiple times, say 5-10 times) you will not need to ask too many questions.
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