The Price-to-Book (P/B) ratio compares a stock's market price to its book value per share (assets minus liabilities on the balance sheet). It is a relative stock valuation metric favored by Graham-style value investors.
A bank stock trading at $45 with a book value per share of $30 has a P/B of 1.5x. Historically, stocks trading below 1x book value have attracted deep-value investors, though book value is less meaningful for asset-light technology companies in stock valuation.
P/B is particularly relevant in stock valuation for financial companies, real estate, and asset-heavy industries where tangible assets dominate. It complements DCF analysis as a sanity check — a very low P/B may signal undervaluation or distress.
While MiniValuator primarily uses DCF for stock valuation, P/B is referenced as a relative benchmark alongside other multiples to provide context for the DCF-derived intrinsic value.
Pronto para aplicar este conceito? Experimente a Calculadora DCF do MiniValuator — calcule o valor intrínseco de qualquer ação americana em menos de 60 segundos.
