A “high return” refers to a stock that has a high return on investment or ROI. It is usually shown as a percentage and measures the profitability of whether or not a company is efficiently using up its resources. The ROI can also be viewed as a rate of return. It is a number used often in investing and the finance world as a whole.
The Price-To-Book or P/B ratio is a valuable factor for investors to consider when looking at stocks. It is a useful number to figure out which companies are overvalued or undervalued. If an investor wants to find a low-priced stock, then they will look at a company that trades below its book value. That P/B is less than one. The number may be low if, for example, a company undergoes new management. Three stocks at present day that have low P/B values are Chimera Investment Corporation (NYSE:CIM), Harmony Gold Mining Co. (ADR) (NYSE:HMY), and BioScrip Inc (NASDAQ:BIOS).
The P/B Ratio or Price-To-Book Ratio is a figure that determines a stock’s market value in comparison to its book value. This formula uses the last closing price of the stock, and divides from it the last quarter’s book value per share. Investors use the ratio to figure out if they are overpaying or underpaying for a stock.