what does the price to book p b ratio compare 
the price to book ratio is a commonly used financial ratio it compares a share s market price to its book value essentially showing the value given by the market for each dollar of the company s net worth high growth companies often show price to book ratios well above 1 0 whereas companies facing financial distress occasionally show ratios below 1 0 another valuable tool is the price to sales ratio which shows the company s revenue generated from equity investments 