Price-To-Book Ratio - P/B Ratio

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Dictionary Says

Definition of 'Price-To-Book Ratio - P/B Ratio'

A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.

Also known as the "price-equity ratio".

Calculated as:

Price-To-Book Ratio (P/B Ratio)
 
Investopedia Says

Investopedia explains 'Price-To-Book Ratio - P/B Ratio'

A lower P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company. As with most ratios, be aware that this varies  by industry.

This ratio also gives some idea of whether you're paying too much for what would be left if the company went bankrupt immediately.

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'Price-To-Book Ratio (P/B Ratio)'

  • Using The Price-To-Book Ratio To Evaluate Companies

    http://www.investopedia.com/articles/fundamental/03/112603.asp
    ... value. Price-to-book value (P/B) is the ratio of market price of a company's
    shares (share price) over its book value of equity. ...

  • Understanding The P/B Ratio

    http://www.investopedia.com/video/play/price-to-book-ratio
    ... Understanding The P/B Ratio. Next video: What Is An Annuity? A price to book ratio
    can tell an investor how the book value of a company measures up to its stock ...

  • How Buybacks Warp The Price-To-Book Ratio

    http://www.investopedia.com/articles/fundamental-analysis/08/buybacks-vs-book-value.asp
    How Buybacks Warp The Price-To-Book Ratio. August ... growth. Many value investors
    use the price-to-book ratio to find undervalued stocks. ...

  • Investment Valuation Ratios: Price/Book Value Ratio | Investopedia

    http://www.investopedia.com/university/ratios/investment-valuation/ratio2.asp
    ... The price/book value ratio, often expressed simply as "price-to-book", provides
    investors ... The P/B ratio therefore has its shortcomings but is still widely used ...

  • 4 Low Price-To-Book Bargains

    http://stocks.investopedia.com/stock-analysis/2010/4-Low-Price-To-Book-Bargains-BAC-C-BG-TM1025.aspx
    ... Five Stocks With Low P/B Valuations Let's check out some stocks that are trading
    at a price-to-book ratio of less than 1, and which may be worthy of follow-up ...

  • Book Value: How Reliable Is It For Investors?

    http://www.investopedia.com/articles/fundamental-analysis/09/book-value-basics.asp
    ... Among these, the book value and the price-to-book ratio (P/B ratio) are staples
    for value investors. But does book value deserve all the fanfare? ...

  • Five Low Price-To-Book Value Stocks

    http://stocks.investopedia.com/stock-analysis/2010/Five-Low-Price-To-Book-Value-Stocks-IM-HMN-EXM-SNX-BZ0730.aspx
    ... Research has shown that stocks purchased with low price-to-book (P/B) ratios will,
    on average ... was that while any given stock with a low P/B ratio could end up ...

  • The 4 Basic Elements Of Stock Value

    http://www.investopedia.com/articles/fundamental-analysis/09/elements-stock-value.asp
    ... Tutorial: Investing 101 For Beginner Investors Earth: The Price-to-Book Ratio
    (P/B) Made for glass-half-empty people, the price-to-book (P/B) ratio represents ...

  • The Debt To Equity Ratio

    http://www.investopedia.com/video/play/debt-to-equity-ratio
    ... Understanding The P/B Ratio. A price to book ratio can tell an investor how the
    book value of a company measures up ... Read More ยป; The Debt To Equity Ratio. ...

  • 5 Must-Have Metrics For Value Investors

    http://www.investopedia.com/articles/fundamental-analysis/09/five-must-have-metrics-value-investors.asp
    ... Ratio If the P/E ratio is a good indicator of what investors are paying for each
    dollar of a company's earnings, the price-to-book ratio (or P/B ratio) is an ...

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