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66.73 (1y: +8%)
Market Cap 180.57 B P/E(ttm) 12.00
Enterprise Value 203.84 B P/B 2.70
BHP- NYSE (USA)
BHP Billiton Ltd
  • Currently 3/5
Business Predictability Rank: 3-Star (On Watch)
Back Testing Results:
Average gain of all 3-Star stocks: 8.2% per year.
% of Stocks that are in still loss if held for 10yrs: 11%.
Read more:
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$66.73
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Definition

The price-to-tangible-book ratio, or P/B ratio, can be calculated as follows:

Price to Tangible Book = Share Price / Tangible Book Value per Share

It can also be calculated from the numbers for the whole company:

Price to Tangible Book = Market Cap / Tangible Equity

A closely related ratio is called P/B Ratio. The difference between Price-to-Tangible-Book Ratio and P/B Ratio is that book value other than intangibles are used in the calculation.

Formula

Price to Tangible Book = Market Cap / Tangible Equity

Beaware

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.

Financial Dictionary

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