Price-to-Book Ratio = Market Capitalization / Book Value of Equity The fundamental way to calculate price-to-book ratio is to divide market capitalization by book value. Calculating on a per-share ...

The P/B ratio is used to calculate how much an investor needs to pay for each dollar of the book value of a stock. It is calculated by dividing the current closing price of the stock by the latest ...

Among the valuation metrics, price-to-earnings (P/E) and price-to-sales (P/S) are more commonly used for stock selection. This is because calculations based on earnings and, to some extent, sales are ...