Book Value Ratio Calculator

The price to book ratio p b ratio is a financial ratio used to compare a company s book value to its current market price.

Book value ratio calculator. The price to book ratio calculation formula is as follows. It relates the firm s market value per share to its book value per share. To use this online calculator for price book value ratio enter market price per share p and cash dividend cd and hit the calculate button.

The formula to measure the price to book value is as follows. Market to book ratio market capitalization book value. How to calculate price book value ratio using this online calculator.

In the below market to book ratio calculator enter the market value and book value to calculate price to book ratio. The market to book ratio is used by the value based investors to help to identify undervalued stocks. The simple price to book ratio calculator to calculate the market to book value ratio.

Book value per share total assets total liabilities number of outstanding shares. Price to book p b stock price per share book value per share. Price to book ratio calculation.

This p b ratio indicates the company s ability to create value for its stockholders. Here is how the price book value ratio calculation can be explained with given input values 240 12000 50. It is calculated by dividing the current closing price of the stock by the latest quarter s book value per share.

You can find this information on a company s financial statements. The formula for calculating market to book ratio is a very simple comparison of market value and book value.