# Price to Book Ratio Calculator (P/B)

URL: https://speedycalculator.com/calculators/finance/price-to-book/
Last updated: 2026-10-25

> The price to book ratio calculator works out book value per share from stockholders' equity, preferred equity and shares, then the P/B ratio – and the price to tangible book ratio excluding goodwill and intangibles.

## Inputs

- Total stockholder equity
- Preferred equity
- Goodwill and intangible assets
- Shares outstanding
- Share price

## Results

- Book value per share
- Price to book ratio
- Tangible book value per share
- Price to tangible book ratio

## Formula

```
Book value per share = (total stockholders' equity − preferred equity) ÷ shares outstanding
P/B = share price ÷ book value per share
Tangible BVPS = (common equity − intangibles) ÷ shares
```

## Explanation

P/B compares the market price with the accounting value of the company's net assets. It is widely used for banks and insurers. A P/B below 1 can signal a bargain – or a business the market expects to lose value.

### How to use the Price to Book Ratio Calculator

- **Total stockholder equity**
- **Preferred equity**
- **Goodwill and intangible assets**
- **Shares outstanding**
- **Share price**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter total stockholders' equity, preferred equity, intangible assets, shares outstanding and the share price.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterTotal stockholder equityAmount in your currencyPreferred equityAmount in your currencyGoodwill and intangible assetsAmount in your currencyShares outstandingA numberShare priceAmount in your currency

### What each result means

- **Book value per share** = ([Total stockholder equity] - [Preferred equity])÷[Shares outstanding]
- **Price to book ratio** = [Share price]÷[Book value per share]
- **Tangible book value per share** = ([Total stockholder equity] - [Preferred equity] - [Goodwill and intangible assets])÷[Shares outstanding]
- **Price to tangible book ratio** = [Share price]÷[Tangible book value per share]

### Example values

How the main result changes when **Total stockholder equity** changes and everything else stays at the example values above:

Total stockholder equityPrice to book ratio400,000,0003.86600,000,0002.45800,000,0001.81,000,000,0001.421,200,000,0001.171,600,000,0000.87

## Worked example

Inputs — Total stockholder equity: $800,000,000; Preferred equity: $50,000,000; Goodwill and intangible assets: $200,000,000; Shares outstanding: 50,000,000; Share price: $27.

Results — Book value per share = $15.00; **Price to book ratio = 1.8**; Tangible book value per share = $11.00; Price to tangible book ratio = 2.45.

## FAQ

**What is a good P/B ratio?**
Below 3 is often considered reasonable; below 1 may signal undervaluation.

**Why exclude preferred equity?**
Book value per share should reflect common shareholders only.

**Which industries use P/B most?**
Banks, insurers and other asset-heavy businesses.

**What formula does the Price to Book Ratio Calculator use?**
Book value per share = (total stockholders' equity − preferred equity) ÷ shares outstanding.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)