Price Book Value Calculator

Price to book ratio definition.

Price book value calculator. The price to book ratio calculator is used to calculate the price to book ratio p b ratio. It is calculated by dividing the current closing price of the stock by the latest quarter s book value per share. Market method a company has a market cap of 50 000 and book value of 5 000.

Price book value market method 50 000 5 000 10 00. Price book value share method share price book value per share. Price book value market method market cap book value.

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. The formula for price to book value is the stock price per share divided by the book value per share. The stock price per share can be found as the amount listed as such through the secondary stock market.

So we need to calculate the ratio in this manner. Here is how the price book value ratio calculation can be explained with. To use this online calculator for price book value ratio enter market price per share p and cash dividend cd and hit the calculate button.

The book value of a company derived from its balance sheet stand to be rs 40 whereas the shares are being sold in the market for a value of rs 100 then the price to book value ratio will be. How to calculate price book value ratio using this online calculator. 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.

Price to book value p b ratio market price per share book value per share.