CluenexGlossary · Valuation
P/B ratio
Price divided by book value (assets minus debts) per share.
Why it matters
Most useful for banks and insurers, whose assets are mostly financial. Less useful for companies whose value is in brands or software.
How to read it
Under 1 means the market values the company below its accounting net worth.
Also called: price to book
Related
In the Cluenex app, this explanation opens next to every p/b ratio figure, with the live reading for the stock you are looking at. Open it in Cluenex