How many times a company's net worth (book value) its shares trade for.
| Company | the P/B ratio | Health Score |
|---|---|---|
| Apple Inc. | 99.89x | 47.5 |
| COCA COLA CO | 16.28x ✓ | 50.5 |
✓ = better on this metric alone (lower wins). Values refresh from live data on every request.
The price-to-book (P/B) ratio is market cap divided by shareholders' equity (total assets minus total liabilities). It shows how many times the company's accounting net worth its market price represents. A P/B of 1x means the market values the company at exactly its book net worth; 0.5x means it trades at half that.
P/B = market cap ÷ equity. Equity comes straight off the balance sheet, so unlike P/E it can still be calculated for a company with negative earnings — which is why it's often used to judge distressed or turnaround companies where P/E is unusable.
A P/B well under 1x can mean either a genuine bargain or a business the market thinks is destroying value (in which case a low P/B is a warning, not an opportunity). Asset-heavy industries (banks, insurers, industrials) are usually judged more on P/B; asset-light ones (software, services) usually aren't, since book value understates what actually drives their worth (brand, code, customer relationships).
Book value can be inflated by intangibles that would be worthless in a real liquidation, or understated for a company that's been buying back stock aggressively for years. Read P/B together with ROE — a low P/B paired with a low ROE is often a value trap, not a bargain.
What is the P/E ratio? What is ROE (Return on Equity)? What is the debt ratio?
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