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Electro Rent Corp  (NAS:ELRC) PB Ratio: 1.67 (As of Today)

As of today, Electro Rent Corp's share price is \$15.50. Electro Rent Corp's Book Value per Share for the quarter that ended in Feb. 2016 was \$9.30. Hence, Electro Rent Corp's P/B Ratio of today is 1.67.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Electro Rent Corp Annual Data

 May06 May07 May08 May09 May10 May11 May12 May13 May14 May15 PB Ratio 1.53 1.34 1.79 1.68 1.09

Electro Rent Corp Quarterly Data

 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 PB Ratio 1.36 1.09 1.13 1.10 1.02

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Calculation

Electro Rent Corp's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Feb. 2016) = 15.50 / 9.302 = 1.67

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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

 P/B Ratio = Market Cap (M) / (Total Equity - Preferred Stock)

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book 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 PE Ratio, PS Ratio or Price-to-Free-Cash-Flow, 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