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Market to Book Ratio

function
frds.measures.corporate.market_to_book(data)

Market-to-Book ratio

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

\text{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.

If data is a Fundamentals Quarterly dataset:

\text{MTB}_{i,t} = \frac{PRCCQ_{i,t}\times CSHOQ_{i,t}}{CEQQ_{i,t}}
Parameters
  • data (Union[Funda, Fundq]) Input dataset
Returns (Union[pd.Series, None])

Market-to-Book ratio


Last update: June 3, 2021