Price-to-Book Ratio Calculator
Result
Price-to-Book Ratio 1.50
Interpretation Trading above book value
The Price-to-Book Ratio Calculator compares a stock's market price to its book value per share. Enter the share price and book value per share to get the P/B ratio.
Formula
P/B Ratio = Market Price per Share ÷ Book Value per Share
- A P/B below 1 can indicate an undervalued stock or weak fundamentals.
- Asset-light companies naturally trade at higher P/B ratios.
Rs 150 price, Rs 100 book value
Inputs
- Market Price per Share: 150 Rs
- Book Value per Share: 100 Rs
150 ÷ 100 = 1.5, so the stock trades at 1.5 times book value.
Frequently asked questions
What is a good price-to-book ratio?
Value investors often look for P/B under 1–3, but the ideal range varies widely by industry.