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Hi-Tech Pharmacal Co., Inc. (NAS:HITK)
P/B Ratio
2.24 (As of Today)

As of today, Hi-Tech Pharmacal Co., Inc.'s share price is \$43.49. Hi-Tech Pharmacal Co., Inc.'s Book Value per Share for the quarter that ended in Jan. 2014 was \$19.44. Hence, Hi-Tech Pharmacal Co., Inc.'s P/B Ratio of today is 2.24.

Definition

Hi-Tech Pharmacal Co., Inc.'s P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Jan. 2014) = 43.49 / 19.437 = 2.24

* 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.

Hi-Tech Pharmacal Co., Inc. Annual Data

 Apr04 Apr05 Apr06 Apr07 Apr08 Apr09 Apr10 Apr11 Apr12 Apr13 pb 2.51 2.62 3.66 1.82 1.31 0.99 2.27 1.94 1.80 1.83

Hi-Tech Pharmacal Co., Inc. Quarterly Data

 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 pb 2.15 2.24 1.80 1.83 1.62 2.00 1.83 1.94 2.30 2.23
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