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rue21 Inc (NAS:RUE)
P/B Ratio
5.43 (As of Today)

As of today, rue21 Inc's share price is \$41.99. rue21 Inc's Book Value per Share for the quarter that ended in Jul. 2013 was \$7.74. Hence, rue21 Inc's P/B Ratio of today is 5.43.

Definition

rue21 Inc's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Jul. 2013) = 41.99 / 7.737 = 5.43

* 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.

rue21 Inc Annual Data

 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 pb 0.00 0.00 0.00 0.00 0.00 0.00 10.07 7.04 4.02 4.15

rue21 Inc Quarterly Data

 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 pb 6.51 6.55 4.91 4.02 4.62 3.70 4.40 3.96 4.18 5.40
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