Financial Metric
Price-to-book compares the market value assigned to equity with the accounting value of shareholders’ equity.
Formula and measurement
P/B = Market price per share ÷ Book value per share
PriceToWorth displays the metric from the latest suitable data available. Period definitions, share counts and provider updates can affect comparability, so users should confirm the relevant reporting period.
Why the metric matters
P/B can be informative for banks, insurers and asset-intensive businesses where balance-sheet values are central to economic performance.
Interpretation and limitations
Book value can be negative, impaired, outdated or economically different across accounting frameworks. Internally generated brands, software and networks may be absent from book value.
How to use it on PriceToWorth
Interpret P/B with return on equity, asset quality, leverage, expected growth and peer valuations. A low multiple may reflect weak profitability rather than a bargain.
Research checklist
- Check the reporting period and whether the value is trailing, annualized or forward-looking.
- Compare the company with suitable industry peers and its own history.
- Investigate sudden changes and corporate actions.
- Read the latest company filing before relying on a material figure.
- Treat a dash, Not available or NM as unavailable—not as zero.
