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# Market To Book Ratio Calculator

The simple price to book ratio calculator to calculate the market to book value ratio. The Market-to-Book Ratio is used by the 'value-based investors' to help to identify undervalued stocks. This P/B ratio indicates the company's ability to create value for its stockholders. It relates the firm's market value per share to its book value per share. In the below market to book ratio calculator enter the market value and book value to calculate price to book ratio.

## Calculate Price to Book Ratio | P/B Ratio

The simple price to book ratio calculator to calculate the market to book value ratio. The Market-to-Book Ratio is used by the 'value-based investors' to help to identify undervalued stocks. This P/B ratio indicates the company's ability to create value for its stockholders. It relates the firm's market value per share to its book value per share. In the below market to book ratio calculator enter the market value and book value to calculate price to book ratio.

#### Formula:

P/B Ratio = Market Value / Book Value

### Example:

Find market to book ratio of an organization whose market value is \$200 and book value is \$10?

#### Solution:

Price to Book Ratio = 200/10
= 20