[{"data":1,"prerenderedAt":236},["ShallowReactive",2],{"term:price-to-book-ratio":3},{"term":4,"related":223},{"id":5,"title":6,"body":7,"category":205,"description":206,"extension":207,"faq":208,"meta":209,"navigation":210,"path":211,"related":212,"seo":216,"stem":217,"takeaways":218,"__hash__":222},"terms\u002Fterms\u002Fprice-to-book-ratio.md","Price-to-Book Ratio (P\u002FB)",{"type":8,"value":9,"toc":199},"minimark",[10,15,19,22,26],[11,12,14],"h2",{"id":13},"understanding-price-to-book-ratio","Understanding Price-to-Book Ratio",[16,17,18],"p",{},"The P\u002FB ratio compares what the market pays for a company with the accounting value of its net assets. A P\u002FB below 1 means the stock trades for less than its book value.",[16,20,21],{},"P\u002FB is most meaningful for companies with mostly tangible assets, such as banks and insurers.",[11,23,25],{"id":24},"formula","Formula",[27,28,31],"span",{"className":29},[30],"katex-display",[27,32,35,72],{"className":33},[34],"katex",[27,36,39],{"className":37},[38],"katex-mathml",[40,41,44],"math",{"xmlns":42,"display":43},"http:\u002F\u002Fwww.w3.org\u002F1998\u002FMath\u002FMathML","block",[45,46,47,67],"semantics",{},[48,49,50,54,58],"mrow",{},[51,52,53],"mtext",{},"P\u002FB",[55,56,57],"mo",{},"=",[59,60,61,64],"mfrac",{},[51,62,63],{},"Price per share",[51,65,66],{},"Book value per share",[68,69,71],"annotation",{"encoding":70},"application\u002Fx-tex","\\text{P\u002FB} = \\frac{\\text{Price per share}}{\\text{Book value per share}}",[27,73,77,106],{"className":74,"ariaHidden":76},[75],"katex-html","true",[27,78,81,86,94,99,103],{"className":79},[80],"base",[27,82],{"className":83,"style":85},[84],"strut","height:1em;vertical-align:-0.25em;",[27,87,91],{"className":88},[89,90],"mord","text",[27,92,53],{"className":93},[89],[27,95],{"className":96,"style":98},[97],"mspace","margin-right:0.2778em;",[27,100,57],{"className":101},[102],"mrel",[27,104],{"className":105,"style":98},[97],[27,107,109,113],{"className":108},[80],[27,110],{"className":111,"style":112},[84],"height:2.2519em;vertical-align:-0.8804em;",[27,114,116,121,195],{"className":115},[89],[27,117],{"className":118},[119,120],"mopen","nulldelimiter",[27,122,124],{"className":123},[59],[27,125,129,186],{"className":126},[127,128],"vlist-t","vlist-t2",[27,130,133,181],{"className":131},[132],"vlist-r",[27,134,138,155,166],{"className":135,"style":137},[136],"vlist","height:1.3714em;",[27,139,141,146],{"style":140},"top:-2.314em;",[27,142],{"className":143,"style":145},[144],"pstrut","height:3em;",[27,147,149],{"className":148},[89],[27,150,152],{"className":151},[89,90],[27,153,66],{"className":154},[89],[27,156,158,161],{"style":157},"top:-3.23em;",[27,159],{"className":160,"style":145},[144],[27,162],{"className":163,"style":165},[164],"frac-line","border-bottom-width:0.04em;",[27,167,169,172],{"style":168},"top:-3.677em;",[27,170],{"className":171,"style":145},[144],[27,173,175],{"className":174},[89],[27,176,178],{"className":177},[89,90],[27,179,63],{"className":180},[89],[27,182,185],{"className":183},[184],"vlist-s","​",[27,187,189],{"className":188},[132],[27,190,193],{"className":191,"style":192},[136],"height:0.8804em;",[27,194],{},[27,196],{"className":197},[198,120],"mclose",{"title":200,"searchDepth":201,"depth":201,"links":202},"",2,[203,204],{"id":13,"depth":201,"text":14},{"id":24,"depth":201,"text":25},"investing","A company's share price divided by its book value per share.","md",[],{},true,"\u002Fterms\u002Fprice-to-book-ratio",[213,214,215],"book-value","value-stock","price-to-earnings-ratio",{"title":6,"description":206},"terms\u002Fprice-to-book-ratio",[219,220,221],"P\u002FB compares market value with accounting net assets.","A P\u002FB below 1 can signal value or trouble.","It is less useful for asset-light companies.","uX-vfqrNRte5hCsHmkggpiXXHDDLVe3ZqtRpGl1JEBE",[224,228,232],{"title":225,"description":226,"path":227},"Book Value","A company's total assets minus its total liabilities, as recorded on its balance sheet.","\u002Fterms\u002Fbook-value",{"title":229,"description":230,"path":231},"Price-to-Earnings Ratio (P\u002FE)","A company's share price divided by its earnings per share.","\u002Fterms\u002Fprice-to-earnings-ratio",{"title":233,"description":234,"path":235},"Value Stock","A stock that trades at a low price relative to measures like earnings or book value.","\u002Fterms\u002Fvalue-stock",1793374005648]