 In this section, I'll explain what is market price to book ratio. So as the name specifies, we have to take into account the values of the market price of a certain stock or a share. And then we compare that with the book ratio or the book value of that particular stock. So we calculate the ratio by dividing the market price to and by the book value. And this is how we get this market price to book ratio. So if we look into the details, companies use this particular ratio to compare a firm's market to book value by dividing the price per share by book value per share, which is abbreviated as BBPS. And the asset's book value is simply the carrying value on the balance sheet and we call it the book value. And companies account for their accumulated depreciation and take out the depreciation value from the asset's value and determine the particular book value. Now, book value is also the net asset value of a company calculated as the total assets which you have minused the intangible assets. Now, the question arises, what are intangible assets? In intangible assets, we account for the patents, goodwill of the company and then you have to consider the liabilities also. Initial outlay of the investment, book value may be net or gross of expenses. So you can also net the expenses or keep the expenses. And then you have to consider the trading costs, sales tax, service charges, you account for all these things and determine the value of the overall market book value. Now, some people may know this ratio by its less common name, which is price to equity ratio. So the name used for the market price to book ratio which is not so famous is price to equity ratio and if we look at the formula of market price to book ratio, then to take out the price to equity ratio or market price to book ratio, we have to keep the market price per share in the numerator and we consider the book value per share in the denominator and if the value of the market price to book ratio is greater than 1, it means that the value of the book is less as compared to the excess demand of the market. It means that the investors want to buy the excess demand or the particular stock although the actual value of the stock is less, but due to the excess demand, the market value is higher than that of the stock. And this is what it is indicating. But if the two values are equal to one another, then the market price to book ratio will become 1 and if the market price to book ratio is less and the market price is smaller, then naturally the market price to book ratio will be smaller than 1 and it is indicating that although it carries a higher value because of this demand and supply interaction or because of the preferences of the investors, the market price to book ratio is less. So this means that if the actual value is higher, then there may be a chance that it will pick up later in the stock market that the market price to book ratio will increase.