Company Health
What is Price-to-Book (P/B)?
Stock price vs. the company's net assets
Full Explanation
P/B ratio compares a company's market value to its book value (assets minus liabilities). A P/B under 1 means you're buying assets for less than their accounting value — potentially a bargain or a value trap.
Pro Tip
Most useful for banks and asset-heavy industries. Less meaningful for software companies.
Related Company Health Terms
Track Real Stocks on Mr. Guy Invests
Free portfolio tracker, AI tutor, hedge fund tracker, everything explained in plain English.
Create Free AccountFree forever. No credit card needed.