P/B Ratio (Price-to-Book)

Valuation

What is P/B Ratio (Price-to-Book)?

Stock price divided by book value per share. Compares what the market is willing to pay versus the company's accounting value.

Why P/B Ratio (Price-to-Book) matters

Often used for asset-heavy industries like banking and real estate. A P/B below 1.0 may indicate the stock trades below its book value.

Related terms in Valuation

DCF (Discounted Cash Flow)Intrinsic Value Market Capitalization P/E Ratio (Price-to-Earnings)P/S Ratio (Price-to-Sales)PEG Ratio Residual Income Model Terminal Value

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.