Price-to-Book (P/B) Ratio Calculator

Below 1 often indicates undervaluation or financial distress. 1–3 is typical for healthy companies. Above 3 is common for high-growth or asset-light businesses.

Service companies have few tangible assets. Their value is in intangibles, brand, and human capital, which do not appear on the balance sheet.

Book value is total assets minus total liabilities. Per-share book value divides this by shares outstanding.