facebookWhat are PB ratios and distribution yields? - Seedly

Anonymous

13 Nov 2019

βˆ™

Stocks

What are PB ratios and distribution yields?

How do this information help in making informed decision to buy a particular stock? Want to make money work harder by going into stocks trading. Am new to stock trading but unfamiliar with stock terms and jargons. Many thanks!

Discussion (3)

What are your thoughts?

Learn how to style your text

Kelly Trinh

13 Nov 2019

Backoffice technical at financial services firm

PB ratio is short for price to book ratio - PB ratio looks at the current market price compared to book value (what assets were originally purchased at); so for example if bought a house 10 years ago at 300k and now is worth 600k then the price-to-book is 2 (=600k/300k)

distribution yield is the last year distributions (payments from holding a stock/fund) dividend by price - eg if a stock gave a dividend of 40 cents over last year and currently can be bought for 10 dollars then the yield is 4% (= 0.40 / 10)

View 2 replies

Write your thoughts