Price to Book Ratio Calculator
Calculate the price-to-book (P/B) ratio to compare a stock’s market price with the accounting value of its net assets.
What is the price-to-book ratio?
The price-to-book (P/B) ratio compares a company’s market value per share to its book value per share (net assets divided by shares outstanding). It’s often used to help judge whether a stock is priced reasonably relative to its accounting net worth.
The formula
P/B Ratio = Share Price / Book Value Per Share. A ratio under 1 can suggest the market values the company below its stated net asset value, while a high ratio often reflects strong growth expectations, intangible assets, or brand value not fully captured on the balance sheet.
This tool is for general educational purposes. Typical P/B ratios vary widely by industry, so this ratio is most meaningful when comparing similar companies within the same sector.