Free Price to Book Ratio Calculator
Evaluate Stock Valuation with Price to Book Ratio
The Price to Book (P/B) Ratio Calculator helps investors compare a company’s market price per share to its book value per share (BVPS). By entering the current share price and BVPS, this tool instantly computes the P/B ratio, showing how the market values a business relative to its net assets. A P/B above 1.0 suggests the market prices the company above its book value, while a ratio below 1.0 may signal potential undervaluation or asset quality concerns. P/B is especially useful for asset heavy sectors like banks, insurers, and manufacturers. Use it alongside metrics such as ROE and P/E to benchmark peers, spot value opportunities, and avoid value traps. Make faster, better comparisons with this simple, easy to use P/B Ratio Calculator.
Price to Book Ratio Calculator
Calculate the Price to Book (P/B) ratio of a stock.
Calculation Results
P/B Ratio
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Calculation Breakdown
Price to Book Ratio (P/B) Calculator Guide
The Formula We Use
Book Value of Equity = Total Shareholders’ Equity − Preferred EquityBook Value per Share (BVPS) = Book Value of Equity ÷ Shares OutstandingP/B Ratio = Price per Share ÷ BVPSMarket-to-Book (%) = P/B × 100optional display
Example Calculation (USD)
- Book Value of Equity = 2,400,000 − 400,000 = $2,000,000
- BVPS = 2,000,000 ÷ 1,000,000 = $2.00
- P/B Ratio = 40.00 ÷ 2.00 = 20.0×
- Market-to-Book = 20.0 × 100 = 2,000%
How to Use This Calculator
- Enter Price per Share, Total Shareholders’ Equity, Preferred Equity (if any), and Shares Outstanding.
- We compute BVPS and the P/B Ratio.
- Compare P/B across peers or vs. the company’s own history.
- Use along with ROE, growth, and sector norms to judge valuation.
Tips to Interpret Price to Book
- Sector context: Asset-heavy sectors (banks, insurers) often use P/B; asset-light tech may look inflated.
- Quality check: Pair with ROE high ROE + reasonable P/B may signal quality.
- Adjustments: Consider intangibles, write downs, and buybacks that change book value.
- P/B < 1.0× can imply potential undervaluation or problems with assets/earnings.
- Timeliness: Use the latest balance sheet; stale BV skews ratios.
Educational content; not financial advice. Always cross check with other valuation metrics.
Benefits of Using
Price to Book Ratio Calculator
Valuation Insight
Identify if a stock is trading above or below its book value.
Quick Calculation
Instantly calculate the P/B ratio using stock price and book value.
Easy to Use
Designed for beginners and professionals alike.
Accurate Results
Provides precise ratio based on your inputs.
Global Stock Compatibility
Supports stocks from multiple international exchanges.
Secure Data
All inputs are processed in-browser and not stored.
Frequently Asked Questions
What is the Price-to-Book (P/B) ratio?
P/B ratio compares a company’s market value to its book value.
Why is P/B ratio important?
It helps investors evaluate whether a stock is overvalued or undervalued relative to its assets.
Can I use this for international stocks?
Yes, enter the stock price and book value in your preferred currency.
Is it beginner friendly?
Yes, the calculator is simple and provides clear results.
Can it calculate historical P/B ratios?
Yes, you can input past stock price and book value.
Is my data safe?
All calculations happen locally; no data is stored.