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Poseidon Concepts Corp  (TSX:PSN) PB Ratio: 0.20 (As of Today)

As of today, Poseidon Concepts Corp's share price is C\$0.27. Poseidon Concepts Corp's Book Value per Share for the quarter that ended in Sep. 2012 was C\$1.33. Hence, Poseidon Concepts Corp's P/B Ratio of today is 0.20.

Historical Data

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

Poseidon Concepts Corp Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 PB Ratio 0.00 0.00 0.00 0.00 49.60

Poseidon Concepts Corp Quarterly Data

 Dec06 Dec07 Dec08 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 PB Ratio 0.00 49.60 0.00 0.00 0.00

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

Poseidon Concepts Corp's P/B ratio for today is calculated as follows:

 P/B Ratio = Share Price / Book Value per Share (Q: Sep. 2012) = 0.27 / 1.325 = 0.20

* 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