Market To Book Value Calculator
You need to provide the two inputs i e market price per share and book value per share.
Market to book value calculator. You can easily calculate the price to book value using formula in the template provided. It is important to understand the market to book value ratio when it is less than 1 and greater than 1. The market to book value ratio is calculated by dividing the current market price per share by the book value per share as per the most recent quarter for the company.
This ratio is used by the investors and other stakeholders to understand how the company is performing or the market s perception about the company and particular stock. A market to book value is a ratio used to analyze how the book value of a stock relates to it s overall market cap. The price that the market believes the company is worth.
Of outstanding shares and book values. Use of price to book value formula the price to book value formula can be used by investors to show how the market perceives the value of a particular stock to be. This calculator readily calculates the market to book ratio when the user enters information such as market price no.
The market to book ratio also called the price to book ratio is a financial valuation metric used to evaluate a company s current market value relative to its book value. This comparison shows if the share prices are a true representation of the net worth of the company making it possible to investigate if the share price is overstated or understated. About the calculator features.
Conversely the higher the book value the lower the ratio. The market value is the current stock price of all outstanding shares i e. The price to book ratio p b ratio is a financial ratio used to compare a company s book value to its current market price.
The book value per share is considered to be the total equity for common stockholders which can be found on a company s balance sheet. Price to book ratio definition. Price to book value formula in excel with excel template here we will do the same example of the price to book value formula in excel.