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.