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Diamond Foods Inc (NAS:DMND)
P/B 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 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.

Diamond Foods Inc Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
pb 2.212.132.692.692.573.471.112.682.973.30

Diamond Foods Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
pb 2.683.924.523.382.973.372.732.983.303.97
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