Price-to-Book Ratio (P/B)
Stock price divided by book value per share — compares market price to accounting value.
What Is Price-to-Book Ratio (P/B)?
The P/B ratio compares what the market thinks a company is worth versus what the balance sheet says. A P/B below 1.0 means you can buy the company for less than the accounting value of its assets — often a deep value signal (or a sign of trouble).
Formula
P/B = Stock Price / (Total Assets - Total Liabilities) per shareWhy It Matters
Useful for asset-heavy industries like banking and real estate. Less useful for technology companies where most value is in intangible assets (brand, IP, software) not captured on the balance sheet.
Typical Ranges: Below 1.0 may be undervalued (or distressed). 1-3 is moderate. Above 5 is premium pricing, common in tech.
Real Examples from Our Database
Based on the latest data in our system. Values may change.
Related Terms
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