Price-to-Book (P/B) Ratio Calculator
Calculate price-to-book ratio to evaluate whether a stock is undervalued relative to its net assets.
Calculation Inputs
Calculation Results
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Enter inputs on the left and click Calculate to view results.
Formula & Methodology
Book Value/Share = (Assets − Liabilities) / Shares; P/B = Price / Book Value
P/B < 1 means stock trades below book value (possibly undervalued). Financial stocks often trade at 1-2× book.
Frequently Asked Questions
What is a good P/B ratio?
Below 1.0 suggests potential undervaluation. 1-3× is normal for most sectors. Growth companies often have higher P/B.