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When evaluating a company, investors mostly look at a stock’s price to earnings (P/E) or price to sales (P/S) ratio. While P/E is the ratio of annual earnings to stock price, P/S reflects the amount investors pay for each dollar of revenues generated by the company.Though P/E and P/S valuation tools are more commonly used for stock selection, the price-to-book ratio is also an easy-to-use metric for identifying low-priced stocks with high-growth prospects.P/B is the ratio of stock price to book value.The P/B ratio helps to identify low-priced stocks with high growth prospects. General Motors Company GM, Unum Group UNM, PVH Corp. PVH, Ford Motor Company F and Affiliated Managers Group AMG are some such stocks.Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high