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KKR Financial Holdings LLC (NYSE:KFN)
P/B Ratio
0.94 (As of Today)

As of today, KKR Financial Holdings LLC's share price is \$11.54. KKR Financial Holdings LLC's Book Value per Share for the fiscal year that ended in Dec. 2013 was \$12.34. Hence, KKR Financial Holdings LLC's P/B Ratio of today is 0.94.

Definition

KKR Financial Holdings LLC's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (A: Dec. 2013) = 11.54 / 12.341 = 0.94

* 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.

KKR Financial Holdings LLC Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 pb 0.00 1.16 1.25 0.98 0.36 0.79 1.01 0.93 1.02 0.99

KKR Financial Holdings LLC Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 pb 0.93 0.94 0.87 1.00 1.02 0.93 0.87 0.85 0.99 0.91
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