Price-to-Book

(redirected from Price-to-Book Value Ratios)

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 ?
But there is no impact on valuation metrics such as price to equity (PE) or price-to-book value ratios.
In Panel B the difference in the price-to-book value ratios is significant, but this difference in not evident in either Panel C or D.
We first calculate the repurchase-to-total asset ratio and then rank firms by 1) dividend payout ratio, 2) price-to-book value ratio, 3) debt asset ratio, 4) return-on-asset ratio, and 5) total assets.
Our proxy for perceived undervaluation is the price-to-book value ratio (PB).
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.
All variables except for the price-to-book value ratio are in millions of dollars.
The one variable that was insignificant in all periods is the price-to-book value ratio.
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.