P/B Ratio calculator is a finance tool to calculate the ratio of current market value of the stock price per share to its book value of equity of a company. It is an investment valuation indicator to show investors the inherent value of a company. Generally, a higher P/B ratio normally greater than 1 may indicate that the company overvalued its stocks. The lesser price to book value ratio normally less than 1 may indicate that the company undervalued its stocks. It is also known as Price Equity Ratio.
Formula P/B (Price to Book) Value Ratio = Stock Price per Share/Book Value of Equity