Price-to-Book Ratio
A valuation ratio that compares a company’s market value with the net asset value on its balance sheet.
Category
Applies to
Related sectors
Linked companies
Why it matters
Investor context
Formula
Calculation pattern
Sector context
Sectors where this term is common
Communication Services
Sectors
Platforms, media groups, telecom-linked ecosystems, and network-driven businesses that monetize attention, subscriptions, or distribution reach.
Energy
Sectors
Integrated oil, gas, services, and power-transition businesses whose cash generation often depends on commodity prices and project execution.
Financial Services
Sectors
Banks, insurers, asset managers, exchanges, and payment businesses whose earnings power often reflects rates, credit, and market activity.
Materials
Sectors
Mining, metals, chemicals, and bulk commodity businesses where realized prices, production discipline, and project execution shape returns.
Issuer examples
Companies using this lens
AIA Group Limited
Companies
A pan-Asian life insurer with long-duration growth exposure through protection, savings, and retirement products.
Barrick Gold Corporation
Companies
A global gold and copper producer whose investment case is closely linked to realized prices, production discipline, and free cash generation.
HDFC Bank Limited
Companies
A leading private-sector Indian bank known for retail deposit strength, disciplined underwriting, and strong profitability metrics.
HSBC Holdings plc
Companies
A globally diversified banking group with major franchises in Asia, transaction banking, wealth management, and commercial finance.
JPMorgan Chase & Co.
Companies
A globally systemically important bank with leading franchises in consumer banking, investment banking, markets, and asset and wealth management.
Mitsubishi UFJ Financial Group, Inc.
Companies
Japan’s largest banking group, with scale across lending, securities, trust banking, and global institutional operations.
Rio Tinto plc
Companies
A diversified mining major with exposure to iron ore, aluminum, copper, and other bulk commodities critical to global industrial demand.
Royal Bank of Canada
Companies
Canada’s largest bank by market capitalization, with scale across personal banking, wealth management, insurance, and capital markets.
SoftBank Group Corp.
Companies
A telecom and investment holding group with meaningful exposure to internet, AI, and portfolio valuation narratives.
Market context
Markets where this concept shows up
Canada Equities
Markets
A developed market with strong financials, software champions, and meaningful exposure to commodity and mining leaders.
Eurozone Equities
Markets
A large continental market mix spanning luxury, pharmaceuticals, industrial exporters, and energy incumbents denominated primarily in euros.
Hong Kong Equities
Markets
A gateway market for Asia-focused capital, combining internet platforms, insurers, financial conglomerates, and China-linked liquidity flows.
India Equities
Markets
A fast-growing large-cap market driven by domestic consumption, bank formalization, industrial capex, and digital infrastructure growth.
Japan Equities
Markets
A major developed market with world-class exporters, industrial leaders, financial institutions, and globally relevant consumer brands.
United Kingdom Equities
Markets
A globally connected market centered on London, with strong representation in healthcare, energy, banking, and diversified resource producers.
United States Equities
Markets
The deepest public equity market in the world, led by large-cap listings, ETF liquidity, and dense institutional coverage across every major sector.
Benchmark context
Indices where the concept matters
BSE Sensex
Indices
A long-running Indian blue-chip benchmark that remains a widely cited shorthand for Indian equity sentiment.
CAC 40
Indices
A flagship eurozone benchmark with meaningful exposure to luxury, healthcare, industrial, and energy leaders.
FTSE 100
Indices
The main blue-chip benchmark for the UK market, with strong links to global macro, commodities, healthcare, and banking.
Hang Seng Index
Indices
Hong Kong’s headline benchmark for regional liquidity, financials, and internet-platform sentiment.
Nasdaq-100
Indices
A growth-oriented U.S. benchmark that concentrates mega-cap technology and internet platform exposure.
Nifty 50
Indices
India’s most watched benchmark for large-cap domestic growth, financial depth, and reform-driven earnings expectations.
Nikkei 225
Indices
Japan’s best-known equity benchmark, widely used as a shorthand for exporter sentiment and domestic market confidence.
S&P 500
Indices
The flagship benchmark for large-cap U.S. equities and the default reference index for broad American risk appetite.