What is P/B Ratio?
P/B Ratio (also called price to book) — Price-to-book — a stock’s price divided by its book value per share, comparing market value to net assets.
In simple terms
A P/B below 1 can indicate a stock trading below its book value.
Why P/B Ratio matters when you invest
Understanding p/b ratio helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
P/B Ratio — frequently asked questions
What is P/B Ratio?
Price-to-book — a stock’s price divided by its book value per share, comparing market value to net assets.
What does P/B Ratio mean in the stock market?
Price-to-book — a stock’s price divided by its book value per share, comparing market value to net assets. A P/B below 1 can indicate a stock trading below its book value.
Can you give an example of P/B Ratio?
A P/B below 1 can indicate a stock trading below its book value.
Put it into practice — open a free account.
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