B
Glossary
Price-to-Book
Also: P/B
Important — standard screening
What it measures
Price vs net worth on paper. Most meaningful for banks and asset-heavy firms, where book value is close to what the assets would fetch.
Formula
Share Price ÷ Book Value per shareBenchmark
< 1 = below book value · > 3 = three times book
Related metrics
Source
Graham & Dodd, Security Analysis (1934)