Finance Dictionary
P/B Ratio
Price-to-Book Ratio — compares a company's market price to its book value (net assets). P/B < 1 may indicate undervaluation. Popular in banking sector analysis.
Formula
P/B = Market Price per Share / Book Value per Share
Example
A bank trading at ₹100 with book value of ₹80/share has P/B of 1.25x.