Glossary › price-to-book ratio
Trading glossary · fundamentals
price-to-book ratio
A number comparing a share's price with what the company owns minus what it owes, for each share.
The fuller meaning
Share price divided by book value (net assets) per share, most useful for asset-heavy businesses such as banks. A low P/B can signal value but is not a bargain if the assets are poor quality.
price-to-book ratio, also called P/B, price-to-book.
Related words
adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank