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Resource America Inc (NAS:REXI)
PB Ratio
1.50 (As of Today)

As of today, Resource America Inc's share price is \$9.78. Resource America Inc's Book Value per Share for the quarter that ended in Jun. 2016 was \$6.53. Hence, Resource America Inc's P/B Ratio of today is 1.50.

Definition

Resource America Inc's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Jun. 2016) = 9.78 / 6.529 = 1.50

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Resource America Inc Annual Data

 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Dec13 Dec14 Dec15 pb 1.86 1.51 1.20 0.64 0.82 0.67 0.88 1.21 1.29 0.91

Resource America Inc Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 pb 1.13 1.23 1.30 1.29 1.30 1.22 0.98 0.91 0.88 1.49
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