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Red Hat, Inc. (NYSE:RHT)
P/B Ratio
6.50 (As of Today)

As of today, Red Hat, Inc.'s share price is $50.55. Red Hat, Inc.'s Book Value per Share for the quarter that ended in Feb. 2014 was $8.09. Hence, Red Hat, Inc.'s P/B Ratio of today is 6.50.

RHT' s 10-Year P/B Ratio Range
Min: 1.65   Max: 12.85
Current: 6.5

1.65
12.85

During the past 13 years, Red Hat, Inc.'s highest P/B Ratio was 12.85. The lowest was 1.65. And the median was 5.95.

RHT's P/B Ratiois ranked lower than
68% of the 1504 Companies
in the Global Software - Application industry.

( Industry Median: 2.45 vs. RHT: 6.50 )

Red Hat, Inc.'s Book Value per Share for the quarter that ended in Feb. 2014 was $8.09.

During the past 12 months, Red Hat, Inc.'s average Book Value Per Share Growth Rate was 1.30% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 9.90% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 10.80% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 18.40% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Red Hat, Inc. was 31.70% per year. The lowest was -10.50% per year. And the median was 11.60% per year.


Definition

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

P/B Ratio=Share Price/Book Value per Share (Q: Feb. 2014 )
=50.55/8.09
=6.25

* 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:

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

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Red Hat, Inc. Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
pb 5.6211.735.284.152.624.736.176.816.450.00

Red Hat, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
pb 6.916.817.007.306.456.456.576.636.040.00
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