Price-to-Book

(redirected from price to book value)
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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 ?
Fernandez (2002) postulates that a firm's price to book value relationship can be expressed as,
If one accepts the premise that certain types of companies which have high price to book value multiples have balance sheets that are less representationally faithful than the balance sheets of companies with low price to book value multiples, then there are some apparent conclusions that can be drawn from this study.
However, the Price to Book Value and Net Income multiples are below the averages of comparable transactions.
Schlumberger's book equity declined substantially during this period, and its stock trades at a very high price to book value of 4.
However, the Share Price to Book Value and Revenue multiples are below the averages of comparable transactions.
The acquisition price to book value will be approximately 3.
We identify stocks that can be acquired at a low price to book value in an effort to buy hard assets at a discount.
Meeting with management and assessing a number of criteria beyond sheer price-to-earnings -- including price to book value, enterprise value to cashflow -- Brody's group makes its investment decision based on long-term investment horizon.
Examples of screens include Price to Net Net Working Capital, Price to Book Value, Price to Sales, and Rankings by Growth in Earnings and Return on Equity, as well as our own 20/20/20 Value Matrix.
The valuation ranking is based on price to book value, price to last twelve months earnings and dividend yield.
Our stock is trading at a discount to our peer group when compared on the basis of key financial ratios such as return on equity, price to earnings, and price to book value.