Price-to-Book

(redirected from Price-to-Book Value Ratio)
Also found in: Acronyms.

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 ?
All other means are insignificantly different with the exception of the price-to-book value ratio in Panel B, which is higher for the heavy group.
Panel A indicates that firms in the lowest quartile according the price-to-book value ratio repurchased an average of 0.
But there is no impact on valuation metrics such as price to equity (PE) or price-to-book value ratios.
On the other hand, the rates of earnings growth for the top life insurers' outpace those of banks by two to one, and insurers' and banks' price-to-earnings ratios and price-to-book value ratios are broadly similar.