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Market to Book Ratio

Definition

Market value of common equity scaled by the book value common equity.

MTB_{i,t} = \frac{PRCC\_F_{i,t}\times CSHO_{i,t}}{CEQ_{i,t}}

where PRCC\_F is the share price at fiscal year end, CSHO is the common shares outstanding, and CEQ is common equity, all from Compustat Fundamentals Annual WRDS.COMP.FUNDA.


Last update: August 10, 2020

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