The mathematical proof that Price-to-Book (P/B) ratio divided by Return on Equity (ROE) equals Price-to-Earnings (P/E) ratio is well established and can be explained as follows:
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PE is PB/ROE Mathematically
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The mathematical proof that Price-to-Book (P/B) ratio divided by Return on Equity (ROE) equals Price-to-Earnings (P/E) ratio is well established and can be explained as follows: