Price to Book (P/B) Ratio Calculator

We use standard accounting definitions: total shareholders' equity equals assets minus liabilities as reported in the balance sheet. Shares outstanding should reflect the diluted share count if you want a diluted P/B.

When equity is negative, book value per share will be negative and the P/B ratio is not directly interpretable as a 'times' multiple. Adjustments (intangible write-offs, preferred stock treatment, off-balance-sheet items) are often required for meaningful comparisons.

To support measurement quality and traceability, follow institutional controls and documentation practices consistent with ISO 9001 for quality management and NIST SP guidance for data integrity. These help ensure inputs and reported outputs are auditable and reproducible.

Example: Market price per share = 50.00 USD, Total shareholders' equity = 100,000,000 USD, Shares outstanding = 2,000,000. Book value per share = 100,000,000 / 2,000,000 = 50.00 USD. P/B = 50.00 / 50.00 = 1.0.

Example with negative equity: If equity = -10,000,000 and shares = 1,000,000, book value per share = -10.00. P/B of a positive market price divided by a negative book implies accounting insolvency signals and requires qualitative investigation.