The Price/Tangible Book Ratio compares a company's market price to its tangible book value, which is the net worth of its assets, excluding intangible items like goodwill or patents. This ratio is helpful for investors to determine how much they are paying for a company's tangible assets. A lower ratio may suggest the stock is undervalued, while a higher ratio could indicate overvaluation. It helps assess a company's financial health and the value of its physical assets relative to its market price.
