Price-to-Book Calculator
Calculate the P/B ratio for any stock, compare companies side by side, or see when P/B is more useful than P/E. Works with any currency.
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How to Use This Calculator
Tab "P/B Ratio"
Enter the stock price per share and book value per share to get the P/B ratio instantly. If you do not have book value per share directly, switch the input method to "Total equity + shares outstanding" and the calculator will derive it. You can also enter intangible assets and goodwill to see the tangible P/B ratio, which excludes non-physical assets.
Tab "Compare Companies"
Enter the stock price and book value per share for 2 or 3 companies. The calculator ranks them by P/B ratio from lowest (cheapest relative to book) to highest, and highlights the most attractively priced company. Useful for comparing banks, REITs, or peers in the same industry.
Tab "P/B vs P/E"
Enter stock price, book value per share, and earnings per share (EPS) to see the P/B and P/E ratios side by side. The calculator explains when each metric is more useful, calculates earnings yield and implied ROE, and provides a guide to which industries suit which metric.
The Formulas
P/B = Market Price per Share / Book Value per Share
Book Value per Share:
BVPS = Total Shareholders' Equity / Shares Outstanding
From the balance sheet:
Book Value = Total Assets − Total Liabilities
Tangible Book Value:
Tangible BV = Book Value − Intangible Assets − Goodwill
Implied ROE (from P/B and P/E):
Implied ROE = P/B / P/E × 100%
All calculations are universal and use standard financial analysis formulas. No country-specific adjustments are applied. Results are estimates for educational purposes.
Worked Examples
Example 1 — Basic P/B: $45 stock, $30 book value = 1.50x
A stock trades at $45 per share with a book value of $30 per share.
At 1.50x book value, investors pay $1.50 for every $1.00 of net asset value. This is within the typical range for most industries, reflecting the market's expectation that the company will generate returns above its cost of capital.
Example 2 — Compare three companies: Bank A (0.85x), Bank B (1.40x), Tech Co (8.50x)
Compare three companies across two industries to see how P/B varies.
Bank A trades below book value — investors can buy $1 of net assets for $0.85. This could be a value opportunity (the market undervalues the bank) or a warning sign (bad loans, regulatory risk). Bank B is fairly valued. Tech Co’s 8.50x premium reflects massive intangible value (software, brand, intellectual property) that does not appear on the balance sheet.
Example 3 — P/B vs P/E: when to use which
A utility stock trades at $50 with $25 BVPS and $3.50 EPS.
The 2.00x P/B says investors pay twice book value — reasonable for a stable utility. The 14.29x P/E suggests fair value relative to earnings. The implied 14% ROE is strong, meaning the company earns well above its cost of equity. For this utility, P/B is the primary metric because tangible assets (power plants, grid infrastructure) drive the business. P/E confirms the earnings story. For a SaaS company with minimal tangible assets, you would lean on P/E instead.
Understanding Price-to-Book Ratio
What Is P/B Ratio?
The Price-to-Book ratio compares what investors pay for a stock (market price) to the accounting value of the company's net assets (book value). It answers a simple question: how much are you paying for $1 of net assets? A P/B of 1.0 means you pay exactly book value. Below 1.0, you pay less than the assets are worth on paper. Above 1.0, you pay a premium for expected future earnings, growth, or intangible value.
When Is P/B Most Useful?
P/B shines for asset-heavy industries where tangible assets closely represent the company's true value. Banks, insurance companies, and REITs carry financial assets that are marked to market, making book value a reliable measure. Manufacturing and utility companies also have large tangible asset bases. For these industries, P/B is often the primary valuation metric used by professional analysts.
P/B Limitations
P/B is less useful for companies whose value comes from intangible assets: software, brand equity, patents, and human capital. A tech company might have a P/B of 15x because its real value (code, users, network effects) does not appear on the balance sheet. For these companies, P/E, EV/EBITDA, or price-to-sales are more informative.
Book Value vs Tangible Book Value
Book value includes goodwill and other intangible assets, often inflated by acquisitions. Tangible book value strips these out, giving a more conservative view. For banks, analysts typically use tangible book value (TBV) because intangibles are hard to liquidate in a stress scenario. If a bank's tangible P/B is below 1.0, it trades below its hard asset value.
P/B vs P/E: Choosing the Right Metric
P/B tells you what you pay per dollar of assets. P/E tells you what you pay per dollar of earnings. Use P/B when assets matter most (banks, REITs). Use P/E when earnings matter most (tech, services). Use both for the most complete picture. The ratio of P/B to P/E approximates ROE — a useful shortcut for assessing quality.