P/B ratio = Stock Price / Book Value per share. Book value: 2,000 - 1,500 = 500 (note that this is the same as owners' equity) Book value per share: 500 / 100 = $5. P/B ratio = $6 / $5 = 1.2. A P/B ratio of less than 1.0 can indicate that a stock is undervalued, while a ratio of greater than 1.0 may indicate that a stock is overvalued. More @Wikipedia
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