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
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by P/B Ratio.
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