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Price to Book Ratio (P/B) Calculator

Enter equity and share details to compute Book Value per Share and the Price-to-Book ratio.

Price to Book Ratio (P/B) Calculator

The Price to Book Ratio (P/B) Calculator is a powerful online tool that helps investors, analysts, and finance professionals quickly determine a company’s price-to-book ratio. By simply entering details like total stockholders’ equity, preferred equity, outstanding shares, and share price, this calculator instantly computes the book value per share and the P/B ratio.

This financial metric is one of the most widely used valuation tools in stock market analysis, providing insights into whether a stock is undervalued or overvalued compared to its book value.

What is the Price to Book Ratio?

The Price to Book (P/B) ratio compares a company’s market price per share with its book value per share (BVPS).

Formula:
P/B Ratio = Market Price per Share ÷ Book Value per Share

Book Value per Share (BVPS) is calculated as:
BVPS = (Total Stockholders’ Equity − Preferred Equity) ÷ Outstanding Shares

P/B Ratio then shows how many times investors are paying above the book value for each share.

Example Calculations Using the P/B Ratio Calculator

Example 1

Total Stockholders’ Equity: 35,000
Preferred Equity: 20,000
Outstanding Shares: 120,000
Share Price: 42

BVPS = (35,000 − 20,000) ÷ 120,000 = 0.13
P/B Ratio = 42 ÷ 0.13 = 336.00

✅ Result: Book Value per Share = 0.13, Price to Book Ratio = 336.00

Example 2

Total Stockholders’ Equity: 500,000
Preferred Equity: 50,000
Outstanding Shares: 200,000
Share Price: 40

BVPS = (500,000 − 50,000) ÷ 200,000 = 2.25
P/B Ratio = 40 ÷ 2.25 = 17.78

✅ Result: Book Value per Share = 2.25, Price to Book Ratio = 17.78

Example 3

Total Stockholders’ Equity: 1,200,000
Preferred Equity: 200,000
Outstanding Shares: 500,000
Share Price: 30

BVPS = (1,200,000 − 200,000) ÷ 500,000 = 2.00
P/B Ratio = 30 ÷ 2.00 = 15

✅ Result: Book Value per Share = 2.00, Price to Book Ratio = 15

Features of the P/B Ratio Calculator

Instant Results – Calculates BVPS and P/B instantly
Accurate & Simple – No manual math required
Easy Inputs – Equity, shares, and share price
For Everyone – Works for investors & analysts alike
Free & Mobile-Friendly – Accessible anytime, anywhere

Who Should Use This Calculator?

Stock Market Investors – Identify undervalued or overvalued stocks
Financial Analysts – For valuation models & research
Business Students – Learn valuation ratios
Portfolio Managers – Compare companies in industries
Traders – Spot potential opportunities

Why the Price to Book Ratio Matters

A low P/B ratio (below 1) can suggest undervaluation or that the company is struggling.
A high P/B ratio may indicate strong growth expectations but could also mean overvaluation.

Comparing the P/B ratio across companies in the same industry helps in making smarter investment decisions.

Benefits of Using Our Calculator

Time-Saving – Eliminates manual errors
Real-Time Insights – Evaluate valuations quickly
Confidence – Make informed investment choices
Comparison Ready – Useful for analyzing multiple companies
Free Access – Available from anywhere

✅ The Price to Book Ratio Calculator is an essential tool for evaluating whether a stock is priced fairly compared to its book value. It is perfect for investors, analysts, and students who want quick, accurate, and reliable calculations.

👉 Try the P/B Ratio Calculator now on Hive Calculator and make informed investment decisions with confidence.