Price To Book Value Ratio Formula
Price to book ratio market price per share book value per share for example a stock with a pvb ratio of two means that we pay 2 for every 1 of book value.
Price to book value ratio formula. It s calculated by dividing the company s stock price per share by its book value per. Price to book value 3 33. The company also recorded 15 000 000 of tangible book value last year.
What is market to book ratio m b. You can find this information on a company s financial statements. Market to book ratio formula.
Companies use the price to book ratio p b ratio to compare a firm s market capitalization to its book value. Warren buffet sendiri yang dikenal sebagai. Hanya saja tidak lengkap kalau kita lewatkan rumus nilai buku per lembar saham dan pengertian price to book value menurut para ahli.
Price to book p b stock price per share book value per share. Market capitalization net book value. Here s the formula of price to book value price to book value ratio market price per share book value per share.
Price to tangible book value share price tangible book value per share for example let s assume that company xyz has 10 000 000 shares outstanding which are trading at 3 per share. The market to book formula is. The formula to measure the price to book value is as follows.
Where net book value total assets total liabilities. Comparison of p b is generally done between the peer group and industry average. The market price per share is simply the current stock price that the company is being traded at on the open market.