PB Ratio
View All TermsThe price-to-book ratio, or P/B ratio, can be calculated as follows:
P/B Ratio = Share Price / {Book Value per Share}
It can also be calculated from the numbers for the whole company:
P/B Ratio = {Market Cap} / {Total Equity}
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.
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