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Vitesse Semiconductor Corp (NAS:VTSS)
P/B Ratio
13.37 (As of Today)

As of today, Vitesse Semiconductor Corp's share price is \$5.28. Vitesse Semiconductor Corp's Book Value per Share for the quarter that ended in Dec. 2014 was \$0.40. Hence, Vitesse Semiconductor Corp's P/B Ratio of today is 13.37.

Definition

Vitesse Semiconductor Corp's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Dec. 2014) = 5.28 / 0.395 = 13.37

* 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.

Vitesse Semiconductor Corp Annual Data

 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 pb 1.61 1.87 2.02 0.97 0.00 0.00 0.00 0.00 11.01 7.79

Vitesse Semiconductor Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 pb 0.00 0.00 0.00 5.01 11.01 14.67 33.60 7.44 7.79 9.57
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