Price-to-Book Ratio Calculator
Enter the share price and book value per share to calculate the price-to-book ratio.
Price-to-Book Ratio Calculator
Calculate the Price-to-Book (P/B) ratio, comparing a stock's market price to its accounting book value.
This calculator provides an estimate for general informational purposes only. It is not a substitute for professional financial, mechanical or engineering advice.
The P/B ratio compares what investors are paying for a share to the company's accounting net worth per share, offering a different valuation lens than earnings-based ratios like P/E.
Example
- With the default values shown above, this calculator returns: Price-to-Book (P/B) Ratio ≈ 1.50.
Frequently Asked Questions
What is the formula?
P/B Ratio = Share Price ÷ Book Value per Share, where book value per share is (Total Assets − Total Liabilities) ÷ Shares Outstanding.
What does the P/B ratio tell you?
A P/B below 1 can indicate a stock is trading below its accounting net asset value, while a high P/B often reflects strong expected future growth or significant intangible value not captured on the balance sheet.