Valuation literacy · Homework calculator
P/B from price and book value
Price vs book equity per share - homework, not a bargain label.
Score guide
Plain-English read on your result
You type rates
Fees & tax - not frozen in code
Educational only
Not a broker ticket or FBR filing
Formula
P/B ≈ last price ÷ book value per share, when BVPS > 0.
Classroom: price 80, book 40
P/B ≈ 2. Book is accounting equity per share, not what the market “should” pay.
Result
Homework- P/B
- - (book not positive)
Understand your number
What your result means
Book not positive
P/B needs positive book value per share.
Typical homework range: Banks often ~1-3×. Asset-light names can differ wildly.
Score guide
| Range | Label | What it means for you |
|---|---|---|
| Under ~1 | Below book (label) | Market prints below accounting equity - can mean stress, bad assets, or sector norm. Read the balance sheet. |
| ~1-2 | Near book band | Common homework zone for financials - book quality matters more than the ratio. |
| Over ~3 | Premium to book | Market pays above stated net assets - often franchise or growth priced in. Verify book is real. |
- Under ~1 - Market prints below accounting equity - can mean stress, bad assets, or sector norm. Read the balance sheet.
- ~1-2 - Common homework zone for financials - book quality matters more than the ratio.
- Over ~3 - Market pays above stated net assets - often franchise or growth priced in. Verify book is real.
Book value is accounting - not liquidation value.
Related with these numbers: P/E from price and EPS · Implied print from P/E × EPS · Dividend yield from DPS and price · EPS from profit after tax
Book is accounting equity, not market value.
FAQ
Is the result a buy or sell signal?
No. It is classroom arithmetic. Compare with filings and a licensed broker before any real order.
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