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Diamond Foods Inc (NAS:DMND)
PB Ratio
3.76 (As of Today)

As of today, Diamond Foods Inc's share price is \$37.56. Diamond Foods Inc's Book Value per Share for the quarter that ended in Oct. 2015 was \$9.98. Hence, Diamond Foods Inc's P/B Ratio of today is 3.76.

Definition

Diamond Foods Inc's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Oct. 2015) = 37.56 / 9.982 = 3.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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

 P/B Ratio = Market Cap / (Total Equity - Preferred Stock)

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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Diamond Foods Inc Annual Data

 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 pb 2.21 2.13 2.69 2.69 2.57 3.47 1.11 2.68 2.97 3.30

Diamond Foods Inc Quarterly Data

 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 pb 2.68 3.92 4.52 3.38 2.97 3.37 2.73 2.98 3.30 3.97
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