Price-to-Book Ratio Calculator

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Per-share mode: enter the share price and book value per share directly. Company-level mode: enter total equity and shares outstanding and the calculator derives book value per share.
Current market price for one share. Find it on any major finance site.
USD
Total common equity divided by shares outstanding, as reported on the balance sheet. Often labelled Book value per share on financial data sites.
USD
When enabled, enter total intangible assets and goodwill. The calculator strips these out to compute the price-to-tangible-book ratio, a metric widely used for banks and financials.
P/B ratioModerate valuation
2.5x

Share price divided by book value per share

Book value per share18USD
2.5 x
Below book<1Moderate1-3Premium3-5High premium5+

P/B ratio: 2.50x

  • A P/B ratio in the 1 to 3 range is typical for many established, profitable businesses. It suggests the market prices in some growth or return on equity above the cost of capital, but not excessive optimism.
  • The implied book value per share is $18.00. The market is paying $2.50 for every $1.00 of net book value.
  • Always compare the P/B ratio against sector peers, not the broad market. Capital-light technology firms routinely trade at 10x+ book while banks and utilities often sit near or below 1x, reflecting fundamentally different business models.

Next stepCross-check with return on equity (ROE). A high P/B is more defensible when ROE exceeds the cost of equity. If P/B is high but ROE is mediocre, the stock may be expensive relative to fundamentals.

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