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Arch Capital Group Ltd (NAS:ACGL)
P/B Ratio
1.30 (As of Today)

As of today, Arch Capital Group Ltd's share price is $54.37. Arch Capital Group Ltd's Book Value per Share for the quarter that ended in 201403 was $41.61. Hence, Arch Capital Group Ltd's P/B Ratio of today is 1.30.

Good Sign:

Arch Capital Group Ltd stock P/B Ratio (=1.3) is close to 1-year low of 1.3

ACGL' s 10-Year P/B Ratio Range
Min: 0.53   Max: 1.63
Current: 1.3

0.53
1.63

During the past 13 years, Arch Capital Group Ltd's highest P/B Ratio was 1.63. The lowest was 0.53. And the median was 1.12.

ACGL's P/B Ratiois ranked higher than
69% of the 200 Companies
in the Global Insurance - Property & Casualty industry.

( Industry Median: 1.30 vs. ACGL: 1.30 )

During the past 12 months, Arch Capital Group Ltd's average Book Value Per Share Growth Rate was 10.50% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 9.90% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 10.70% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 8.60% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Arch Capital Group Ltd was 52.20% per year. The lowest was -7.30% per year. And the median was 10.40% per year.


Definition

Arch Capital Group Ltd's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (Q: 201403)
=54.37/41.61
=1.31

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Arch Capital Group Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
pb 0.600.781.401.201.230.910.981.171.221.50

Arch Capital Group Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
pb 1.121.151.131.221.401.401.411.501.380.00
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