what counts as a good price to book ratio will depend on the industry in question and the overall state of valuations in the market an investor assessing the price to book ratio of a stock might choose to accept a higher average price to book ratio as compared to an investor looking at the stock of a company in an industry where lower price to book ratios are the norm 
the bottom linethe price to book p b ratio considers how a stock is priced relative to the book value of its assets if the p b is under 1 0 then the market is thought to be underpricing the stock since the accounting value of its assets if sold would be greater than the market price of the shares therefore value investors typically look for companies that have low price to book ratios among other metrics a high p b ratio can also help investors identify and avoid overvalued companies 