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 15.83.
The company has a Price to Earnings Ratio of 83.68 and the Price to Book value ratio is 11.47 .
It is trading at a price to book value ratio (PB) of 0.43 X, which is lower than majority of its peers.
It notes Emaar is currently trading at a price to earnings multiple of 7.42 and a price to book value ratio of of 1.30.
Alternatively, the book value per share can be used to compute a price to book value ratio (P/B) and a relative valuation can be performed as in the market approach presented in the previous section.
We are also pleased that our improved earnings and our stock repurchase program have combined to continue to improve our price to book value ratio and return on equity."
"At a 2013 price to book value ratio of 0.7x the bank is trading well below levels seen before the global financial crisis."
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.
The first sample drawn from this database included companies with the 200 highest and the 200 lowest market price to book value ratios (PRBV).