Price/book ratio

The price to book ratio (p/b ratio) is calculated by dividing the current share price by its book value per share.

Updated August 2018

Book value is also known as equity, shareholders' funds, or net asset value (NAV). It is the value of all of a company's assets, less all of its liabilities (debts).The number can easily be found on the balance sheet in a company's annual report.

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