What is the market book ratio formula for cryptocurrencies?

1 answers

• Dec 17, 2021 · 3 years ago
  The market book ratio formula for cryptocurrencies is a simple calculation that can help investors assess the valuation of a cryptocurrency. It is calculated by dividing the market price of the cryptocurrency by its book value. The market price represents the current trading price in the market, while the book value represents the net asset value of the cryptocurrency. The market book ratio provides an indication of whether a cryptocurrency is overvalued or undervalued. A ratio greater than 1 suggests that the cryptocurrency may be overvalued, while a ratio less than 1 suggests that it may be undervalued. However, it's important to consider other factors such as market trends and the overall performance of the cryptocurrency before making any investment decisions.
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