Price to Book Ratio Formula
The price to book ratio is calculated by dividing the market price per share by the book value per share. We first subtract the total liabilities from the total assets. Price To Book Value Ratio Value Investing Financial Ratio Books Trailing PB Ratio 234 500 05x. . PB ratio 200. A good price to book ratio is anything below 1 as this would suggest that the company is undervalued. PB ratio Market price per share Book value per share. Book Value of Equity total assets total liabilities100 million assets 75 million. A PB ratio of one means that the stock price is trading in line with the book value of the company. Consequently its price-book value ratio declined from 789 to 125. Market Capitalization current share price total diluted shares outstanding 5 10 million. Once you have the numbers entered into the formula you can divide to find the result. A ratio above 1 would suggest that the investment is more se...