The price to book ratio (P/B)The price to book ratio (P/B) is the ratio of the company’... More is the ratio of the company’s priceWhat are value stocks? A value company is a company that app... More over the total of the company. The P/B is calculated by dividing the stock’s current closing priceWhat is price? The price is the measure of the value of good... More by the most recent quarter’s book valueWhat does book value mean? In financial accounting, book va... More per share. The formula used is:
Like most other ratios used in trading, the typical P/B can vary among different industries.
P/B is also sometimes called the price/equity ratio.