Free financial calculator

P/B Ratio Calculator with Live Sector Benchmarks

Compute the price-to-book ratio in seconds and place it against live sector medians: banks near 1, technology far above. Free, with formula and example.

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Inputs

Share price

Also called: Stock price, market price

Where to find it: Any finance site (Google/Yahoo Finance), the current trading price per share.

How to derive: Set by the market; just enter the current price per share.

Book value per share

Also called: BVPS, equity per share

Where to find it: Balance sheet: shareholder equity ÷ shares. Often listed directly as a stat.

How to derive: Shareholder equity ÷ shares outstanding.

Result, live

P/B

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Crucial for banks/insurers; weak for tech (intangibles missing from the balance sheet).

The price-to-book ratio (P/B) compares the share price to the equity on the balance sheet, the net assets that would theoretically remain if the company were wound down. This calculator divides share price by book value per share and shows instantly whether you pay a premium or a discount to that substance.

How the formula works

Book value per share is total equity divided by the number of shares. The P/B ratio sets the market price against that accounting value: a ratio of 1 means you pay exactly the net assets, above 1 a premium, below 1 a discount.

Book value per share = total equity ÷ shares outstanding
P/B = share price ÷ book value per share

Example: A stock trades at $50 with a book value of $32 per share. P/B = 50 ÷ 32 = 1.56. You pay about 56% more than the accounting net assets, a normal premium for a profitable firm.

How to read the result

Below 1: priced under book value; a possible bargain, but find out why the market is skeptical.
1 to 3: the normal range for most healthy companies.
Above 3: a clear premium to net assets; justified only by strong returns on equity.

What to watch out for

Weak for tech. Brands, software and patents barely appear on the balance sheet, so asset-light firms look expensive on P/B.
Book value can be stale. Assets are carried at historical cost, not today's worth.
Cheap can mean broken. A P/B below 1 sometimes signals losses ahead, not a bargain.

P/B ratio by sector

A P/B ratio only means something next to the company's own sector: banks and real estate are valued close to book, asset-light technology companies far above it. The table shows median and range for every sector from our database, updated daily.

P/B ratio by sector: median and range
Sector	Lower quartile	Median	Upper quartile	Stocks
Real Estate	0.41	0.74	1.24	1,419
Financials	0.72	1.11	1.76	2,696
Communication Services	0.55	1.17	2.62	667
Consumer Discretionary	0.67	1.39	2.67	2,660
Utilities	0.81	1.40	2.19	554
Consumer Staples	0.71	1.41	2.59	1,296
Materials	0.68	1.41	2.60	2,725
Energy	0.83	1.46	2.57	762
Industrials	0.78	1.60	3.07	4,172
Health Care	0.82	1.80	3.40	1,787
Information Technology	0.94	2.26	4.49	2,660

Source: the Fair Value Calculator database, 21,398 stocks with a valid value for P/B ratio, as of Oct 15, 2026. Median: half of the sector's stocks sit below it. Lower and upper quartile: 25 % sit below or above. Values move daily with prices. All valuation ratios by sector →

P/B ratio by industry and sector: all industries, quartiles, CSV →

Frequently asked questions

What is a good price-to-book ratio?

For banks and insurers a P/B near or below 1 is often attractive; for asset-light businesses a much higher ratio can still be reasonable. Always judge it against return on equity and the sector.

Why is P/B most useful for banks?

Banks carry their assets, loans and securities, close to market value, so book value reflects real worth. That makes P/B a reliable yardstick for financials, unlike for tech.

Where do I find the book value per share?

It is total equity from the latest balance sheet divided by shares outstanding. In our Fair Value Calculator it is already on file for 35,000+ stocks, no typing required.

What value is normal in my sector?

See the table in the sector comparison section: median and range for every sector from our database, updated daily. A value near the median of the company's own sector is usual; well below or above it calls for a reason in the business model.