Price to Book

Free Price to Book calculator with clear step-by-step results.

About Price to Book

Price-to-book compares the market price to accounting net assets per share.

Formula

P/B = share price ÷ book value per share

Worked example

With the default values below, Price to Book returns Price-to-Book of 1.25. Change any input above and every figure here is recalculated in your browser.

Inputs used

Share priceminimum 0 $: 50 $
Book value per shareminimum 0 $: 40 $

Results

Price-to-Book: 1.25
Premium to Book: 25.0%
Book Value: $40.00

Step by step

1Values used
2Formula
3Price-to-Book= 1.25
4Premium to Book= 25.0
5Book Value= $40

Assumptions and limits

The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How does this calculator work?