Price to Book Calculator: calculate price to book for your business. Formula, benchmarks, and practical tips included.
P/B = Market capitalisation ÷ Book value of equity
P/B = Share price ÷ (Book value ÷ Shares outstanding)
Worked example: Market cap 4,500. Book equity 1,800. P/B = 4,500/1,800 = 2.5×. The market values the company at 2.5× its net assets — implying the market assigns significant value to intangibles, brand, and future earnings power beyond balance sheet assets.