what is the price to book p b ratio 
many investors use the price to book ratio p b ratio to compare a firm s market capitalization to its book value and locate undervalued companies this ratio is calculated by dividing the company s current stock price per share by its book value per share bvps investopedia theresa chiechiformula and calculation of the price to book p b ratiothe formula for the price to book ratio is p b r a t i o m a r k e t p r i c e p e r s h a r e b o o k v a l u e p e r s h a r e p b ratio dfrac market price per share book value per share p b ratio book value per sharemarket price per share 