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Entropic Communications Inc (NAS:ENTR)
P/B Ratio
1.56 (As of Today)

As of today, Entropic Communications Inc's share price is \$3.02. Entropic Communications Inc's Book Value per Share for the fiscal year that ended in Dec. 2014 was \$1.94. Hence, Entropic Communications Inc's P/B Ratio of today is 1.56.

Definition

Entropic Communications Inc's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (A: Dec. 2014) = 3.02 / 1.939 = 1.56

* 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:

 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 own currency.

Entropic Communications Inc Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 pb 0.00 0.00 2.59 0.49 3.18 4.14 1.50 1.46 1.58 1.30

Entropic Communications Inc Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 pb 1.46 1.12 1.35 1.42 1.58 1.55 1.31 1.21 1.30 0.00
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