The price-to-book (P/B) ratio compares a company's market value to its book value. It's an easy way to determine a company's value but has drawbacks. Learn more.

You can calculate the price-to-book, or P/B, ratio by dividing a company's stock price by its book value per share, which is defined as its total assets minus any liabilities. This can be useful ...

What Is a Good Price-to-Book Ratio? That is subjective to how much an investor is willing to pay for a company’s shares. A high multiple might indicate overvaluation, while a ratio closer to 1 ...

To find the price-to-book ratio, you’d divide the share price by the book value per share. In terms of what’s a good price-to-book ratio, it’s generally anything under 1, since that means ...

What leads to this ratio being so widely used is that it’s intuitive, simple, and has a strong historical basis—back testing the price-book value ratio of prices has good correlation.

The price-to-book (P/B) ratio is widely favored by value investors for identifying low-priced stocks with exceptional returns. The ratio is used to compare a stock’s market value/price to its book ...

P/B ratio reflects how many times book value investors are ready to pay for a share. So, if the share price is $10 and the book value of equity is $5, investors are ready to pay two times the book ...

Learn what the average price-to-book (P/B) ratio is in the banking industry and how the corporate stock evaluation metric is used when analyzing banks.

The technique was first popularized by Kenneth Fisher in his 1984 book Super Stocks. Proponents of the price-to-sales ratio argue that earnings-based approaches to selecting stocks are inferior ...

You can calculate the price-to-book, or P/B, ratio by dividing a company's stock price by its book value per share, which is defined as its total assets minus any liabilities. This can be useful ...