India, Sept. 27 -- The Price-to-Book (P/B) ratio shows how much investors are paying for a company as compared to its actual net worth (assets minus liabilities). If the P/B is 1, the market value and book value are the same. If it is higher than 1, investors are paying extra because they expect better growth or profits.

A P/B ratio below 1 means the company's shares are cheaper than its net worth. This can be a good sign because you may be buying the stock at a discount. But it's important to check if the business is healthy, as sometimes a low P/B also means the company is facing problems.

1. Raymond Lifestyle Raymond Lifestyle manufactures and sells branded clothes. Through its brands such as Raymond, Park Avenue, ColorPlus, Parx, an...