What exactly is P/B? Think of it as the market price of a company compared to its “book value,” which is basically assets minus liabilities (net worth on paper).
If P/B = 5, investors are paying $5 for every $1 of assets.
A simple measure, but one that reveals when markets…
— StockMarket.News (@_Investinq) August 18, 2025
The pattern is consistent: high ratios = muted returns or crashes, low ratios = strong gains.
Valuations don’t predict the exact timing, but they’re great at signaling risk.
Today, at 5.3×, the U.S. market sits in uncharted waters, higher than any peak investors have seen…
— StockMarket.News (@_Investinq) August 18, 2025