Price-to-Book Ratio Calculator
P/B from Stock Price
Calculate P/B ratio from price and book value per share
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P/B from Total Values
Calculate P/B from market cap and total book value
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Formula
P/B Ratio = Market Price Per Share / Book Value Per Share | Book Value = Total Assets - Total Liabilities
Frequently Asked Questions
What is the price-to-book ratio?
The P/B ratio compares a stock's market price to its book value per share. A P/B of 2 means the market values the company at twice its accounting (book) value. It is commonly used in value investing.
What does a P/B ratio below 1 mean?
A P/B below 1 means the stock is trading below its book value, which could indicate the stock is undervalued, or that the market believes the company's assets are overvalued on its balance sheet.
When is P/B most useful?
P/B is most useful for asset-heavy companies like banks, insurance firms, and real estate companies. It is less meaningful for tech or service companies where intangible assets and intellectual property drive value.
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