🎲 Fun & Lifestyle
Book Value Calculator
Book Value per Share and Price-to-Book (P/B) ratio.
Enter values to see your result
Frequently asked questions
When is P/B < 1 a bargain?
For financially healthy companies with predictable cashflows — rare deals. More often, P/B < 1 signals distress. Banks during crisis often trade at 0.5x P/B.
Why do tech stocks have high P/B?
Book value only counts tangible assets. Tech companies' value is mostly in IP, brand, human capital — not on balance sheet. P/B isn't useful for them.
Book value vs liquidation value?
Book assumes going concern. Liquidation assumes asset sale — usually 50–70% of book. Stocks rarely trade at pure liquidation value.
P/B with ROE?
High ROE justifies high P/B. A company earning 25% ROE at 4x P/B is equivalent to an investment yielding 25/4 = 6.25% on market price — reasonable for growth.