Valuation

What is P/B Ratio (Price-to-Book Ratio)?

P/B ratio compares a stock's market price to its book value per share. It shows whether you're paying more or less than the company's net asset value.

Formula

P/B Ratio = Market Price per Share ÷ Book Value per Share

How to Interpret

P/B below 1 may indicate undervaluation. Most useful for asset-heavy sectors like banking, real estate, and infrastructure.

Typical Ranges

Banking: 1.5-3.0, Capital-intensive industries: 1.0-2.5

Analyze P/B Ratio (Price-to-Book Ratio) by Indian Market Sector

See how p/b ratio (price-to-book ratio) varies across major Indian (NSE/BSE) market sectors. US sector benchmarks are summarised in the Typical Ranges section above.

Banking & Financial Services Information Technology Pharmaceuticals & Healthcare FMCG (Fast-Moving Consumer Goods)Automobile & Auto Components Energy & Oil & Gas Infrastructure & Construction Real Estate Telecom Metals & Mining Chemicals & Specialty Chemicals Insurance

Learn More in the Academy

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Stock Valuation BasicsBeginner / Foundations

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RatiosEquities

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Relative Valuation MethodsFundamental Analysis

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter US or Indian stocks by P/B Ratio.

US Stock Screener →Indian Stock Screener →