Price to Book Calculator

Calculate P/B ratio to compare market price with book value per share.

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Important Financial Disclaimer

This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.

For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.

Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.

Not a substitute for professional financial advice

Market Data

$
shares

Balance Sheet Data

$
$
$

Comparison

x
%

Price to Book Ratio

6.25x

High Premium - Significant intangibles expected

Book Value/Share
$8.00
P/TBV Ratio
8.33x

Book Value Calculation

Total Assets$10.00M
Total Liabilities($6.00M)
Book Value (Equity)$4.00M
Shares Outstanding500K
Book Value Per Share$8.00

Valuation Metrics

P/B Ratio6.25x
P/TBV Ratio8.33x
Tangible BVPS$6.00
Market Cap$25.00M
Premium to Book$42.00 (+525.0%)

Industry Comparison

Your P/B6.25x
Industry Average2.5x
vs Industry+3.75x (+150.0%)
Fair Value at Industry P/B$20.00
Justified P/B (ROE-based)2.00x

P/B Implied Prices

0.5x P/B
$4.00(-92.0%)
1.0x P/B
$8.00(-84.0%)
1.5x P/B
$12.00(-76.0%)
2.0x P/B
$16.00(-68.0%)
2.5x P/B
$20.00(-60.0%)
3.0x P/B
$24.00(-52.0%)

Formula: P/B = Stock Price / Book Value Per Share = $50.00 / $8.00 = 6.25x

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sources

  • Reserve Bank of India (RBI) — Financial regulations, lending rates, and monetary policy guidelines. rbi.org.in
  • Consumer Financial Protection Bureau (CFPB) — Consumer finance guidelines, mortgage and loan disclosure standards. consumerfinance.gov
  • Securities and Exchange Board of India (SEBI) — Investment and securities market regulations. sebi.gov.in
  • Investopedia — Financial formulas, definitions, and educational content. investopedia.com

For a complete list of all references used across the site, visit our full sources page.

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Editorial Note

MyCalcBuddy Editorial Team

This page is maintained as an educational calculator reference.

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Formula Source: Fundamentals of Financial Management

by Brigham & Houston

🔄Last reviewed: May 2026
✓Formula checks are based on standard references and internal QA review.