📗 Price to Book Ratio
Valuation multiple based on book value
Instructions
1
Enter price
Use the current share price.
2
Enter BVPS
Use the latest book value per share.
3
Calculate
Compare across similar companies.
Formula
P/B = Price per Share ÷ BVPS
Common Questions
Is lower P/B always better?
Depends on asset intensity and accounting; compare by sector.
Use tangible book?
For some analyses, tangible book is preferred; be consistent.