Price-to-Book

(redirected from Price to Book Value 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 ?
The Price to Earnings / Growth is 0 while the Price to Book value ratio is 15.
It is trading at a price to book value ratio (PB) of 0.
Notwithstanding the Company's stable business performance, as a result of the excess internal reserves kept by the Company, its equity capital ratio is more than 70%, and the stock price to book value ratio is approximately 1 to 1.
The results of this research reveal that brand value is significant in explaining variations in the price to book value ratios over and above the explanatory power of variables that are typically thought to be related to price to book value differentials.
Because of the dichotomous grouping of companies, the total sample of "brand value" and "zero brand value" companies allow for tests of the representational faithfulness of balance sheets, as represented by variations in price to book value ratios.