P/B (price to book)
Share price over the book value of equity per share.
Formula
Market capitalisation over equity attributable to the parent's shareholders at the reporting date.
How to read the number
The ratio means something where the balance sheet reflects reality: banks, insurers and asset-heavy businesses.
When the metric lies
Where it is used
The metric is calculated across every security in the catalogue and appears on the instrument card, in the multiples table and in the screener.
Also known as: price to book, p/b