Price-to-Book

(redirected from Price to Book Ratio)

Price-to-Book

A ratio of the share price of a publicly-traded company to its book value per share, which is the company's total asset value less the value of its liabilities. The P/B is a ratio of investor sentiment on the value of a stock to its actual value according to the Generally Accepted Accounting Principles. A high P/B means either that investors have overvalued the company, or that its accountants have undervalued it.
References in periodicals archive ?
Results in Table 3 are fairly straightforward; the price to book ratio is positively and significantly related to having a board chairperson that is also the CEO; the number of insiders and doctors on the board share this relationship.
The acquisition represents a price to book ratio of 4.
The average price to book ratio for Oregon/Washington commercial banks is 1.
It is calculated for each stock using a multiple regression model of earnings stability, estimated earnings growth, relative return on equity, and relative price to book ratio.
As we have reported on options news before, homebuilders trade off of price to book ratios, and price to liquidity ratios.
Under Cullen's investment strategy, the portfolio manager seeks out mid-sized and large cap companies that possess three key elements: attractively low valuations evidenced by low price to earnings ratios and low price to book ratios, dividend yields which are greater than the S&P 500 as this has historically served to offer downside protection, and lower than average dividend payout rates that are growing.
Buying stocks with low price to earnings ratios, low price to book ratios and high dividend yields is a key to the Fund's five-star rating," says Cullen.