Price-to-Book (P/B)
Also called: P/B ratio, price to book
Share price divided by book value per share — how the market values a company versus its net assets on the balance sheet.
Book value is assets minus liabilities — roughly what shareholders would have if the company were liquidated. P/B = price ÷ book value per share. A P/B below 1 means the stock trades for less than its accounting net worth, a classic (if sometimes deceptive) value signal; a high P/B reflects assets the balance sheet doesn't capture, like brands or software.
P/B is most meaningful for asset-heavy businesses (banks, insurers, industrials) and less so for asset-light tech, where most value is intangible. Like other ratios it's a starting point, not a verdict.
On StockSetups
P/B is a valuation screener field on StockSetups, handy for value-leaning filters on the technical board.
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