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Globecomm Systems, Inc. (NAS:GCOM)
P/B Ratio
1.36 (As of Today)

As of today, Globecomm Systems, Inc.'s share price is \$14.10. Globecomm Systems, Inc.'s Book Value per Share for the quarter that ended in Sep. 2013 was \$10.38. Hence, Globecomm Systems, Inc.'s P/B Ratio of today is 1.36.

Definition

Globecomm Systems, Inc.'s P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Sep. 2013) = 14.10 / 10.378 = 1.36

* 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.

Globecomm Systems, Inc. Annual Data

 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 pb 1.45 1.54 1.69 3.50 1.12 0.97 1.07 1.90 1.07 1.23

Globecomm Systems, Inc. Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 pb 1.90 1.60 1.53 1.60 1.07 1.15 1.16 1.21 1.23 1.35
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