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As of today, Aruba Networks Inc's share price is $24.67. Aruba Networks Inc's Book Value per Share for the quarter that ended in Jan. 2015 was $2.91. Hence, Aruba Networks Inc's P/B Ratio of today is 8.48.
Aruba Networks Inc's P/B ratio for today is calculated as follows:
|P/B Ratio||=||Share Price||/||Book Value per Share (Q: Jan. 2015)|
* 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.
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.
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.
Aruba Networks Inc Annual Data
Aruba Networks Inc Quarterly Data