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Xyratex, Ltd. (NAS:XRTX)
P/B Ratio
1.24 (As of Today)

As of today, Xyratex, Ltd.'s share price is \$13.24. Xyratex, Ltd.'s Book Value per Share for the fiscal year that ended in Nov. 2013 was \$10.70. Hence, Xyratex, Ltd.'s P/B Ratio of today is 1.24.

Definition

Xyratex, Ltd.'s P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (A: Nov. 2013) = 13.24 / 10.698 = 1.24

* 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.

Xyratex, Ltd. Annual Data

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 pb 3.43 2.77 2.79 1.58 0.38 1.52 1.26 1.01 0.68 0.96

Xyratex, Ltd. Quarterly Data

 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 pb 0.68 1.01 1.26 0.83 0.78 0.68 0.81 0.93 0.89 0.96
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