valuation term

Price-to-Book Ratio

A valuation ratio that compares a company’s market value with the net asset value on its balance sheet.

Category

valuation

Applies to

Companies, Sectors, Indices

Related sectors

4

Linked companies

9

Why it matters

Investor context

It is especially useful for banks, insurers, and asset-heavy businesses where book value remains a meaningful anchor.

Formula

Calculation pattern

market value of equity ÷ book value of equity

Sector context

Sectors where this term is common

Issuer examples

Companies using this lens

Market context

Markets where this concept shows up

Benchmark context

Indices where the concept matters