This page shows the market to book ratio formula which helps you in analyzing a company's book value, which in turn helps you in analyzing the historical cost accounting of the company. Using price to book ratio formula one can find the P/B ratio by dividing market value by the book value. The Book value of a company is posted on the balance sheet. The Book values are also known as net asset value which helps you compare companies of the same sector.

Use this market to book ratio formula to compare the book value of the companies. The Book value is the net value of assets within a company which is posted on the balance sheet of the companies. The price to book ratio formula is essential to analyze the company's growth.