Price to Book Calculator

Jun 11, 2018

Price to Book Calculator is a tool that measures a company's market price in relation to its Book Value

Price To Book Ratio:

What does Price-To-Book Ratio mean?
The Price-To-Book Ratio denotes how much equity investors are paying for each dollar in net assets. The book value is located on a company's balance sheet under the name "stockholder equity". It represents the total amount that would be left over if the company liquidated all of its assets and repaid all of its liabilities
Price-To-Book Ratio = Stock Price / Book Value per share

Balance Sheet for Company ABC
(Year ending December 31, 2010)

Accounts Receivable500
Accounts Payable500
Current Long-Term Debt500
Total Current Liabilities1,000
Long Term Debt500
Total Liabilities1,500
Owners' Equity500

According to the formula:-

  • Book value: 2,000 - 1,500 = 500
  • Book value per share: 500 / 100 = $5
  • P/B ratio = $6 / $5 = 1.2

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Jun 11, 2018
Tool Launched