In early 2022, Abercrombie & Fitch (ANF) had a book equity of $826 million, a price per share of $39.00, and 50.4 million shares outstanding. At the same time, The Gap (GPS) had a book equity of $2722 million, a share price of $17.88, and 368 million shares outstanding.

a. What is the market-to-book ratio of each of these clothing retailers?

b. What conclusions can you draw by comparing the two ratios?