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 ?
7 March 2008 Note: *) PBV: price to book value (book value) Source: Data Consult/ICN
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.
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.
Sorouh currently trades at a price earnings of 7x and a price to book value of 0.
The banking sector in particular has witnessed stellar performance on the Karachi Stock Exchange 100 Index, with current trading range of price to book value multiples of two to four times.