What is Book Value and Book Value Per Share? Importance & limitations of book value! What is Book Value and Book Value Per Share? Importance & limitations of book value! Understanding the importance of book value is crucial for investors, analysts, and business stakeholders, for several reasons Kiran Shroff / Wednesday, April 3, 2024 / Article rating: 2.8 A low price-to-book ratio (P/B ratio) may indicate that the stock is undervalued, while a high P/B ratio may suggest overvaluation.