Calculate price-to-book ratio from share price and book value per share, or reverse solve price or book value for stock valuation.
Use this P/B ratio calculator to calculate price-to-book ratio from market price per share and book value per share, or reverse the formula to solve for a missing input. P/B is a common valuation multiple for financial stocks, asset-heavy businesses, and balance-sheet-focused analysis.
The core formula is P/B = Price per share / Book value per share. For example, a share price of 33 and book value per share of 5 gives a P/B ratio of 6.6.
P/B = Price per share / Book value per share
Because book value reflects accounting equity, P/B should be interpreted carefully. It is often most useful when paired with ROE, asset quality analysis, and peer comparison inside the same sector.
$$\text{Market Price per Share} = \mathrm{P/B} \times \text{Book Value per Share}$$
$$P = \mathrm{P/B} \times \mathrm{BVPS}$$
$$\text{Book Value per Share} = \frac{\text{Market Price per Share}}{\mathrm{P/B}}$$
$$\mathrm{BVPS} = \frac{P}{\mathrm{P/B}}$$
$$\mathrm{P/B} = \frac{\text{Market Price per Share}}{\text{Book Value per Share}}$$
$$\mathrm{P/B} = \frac{P}{\mathrm{BVPS}}$$
P/B stands for price-to-book ratio. It compares the market price per share with book value per share and is used as a market valuation multiple.
P/B = Price per share / Book value per share. This calculator can also solve for price per share or book value per share.
P/B is often most useful for banks, insurers, and other businesses where balance sheet value is especially important. It can be less informative for asset-light businesses with large intangible value.
P/B shows how the market values equity, while ROE shows how effectively that equity generates profit. Looking at both together gives a better valuation picture.
A higher P/B often means the market expects stronger returns or growth from the equity base. But book value quality matters, so the ratio is best read alongside ROE and the nature of the company’s assets.
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