PBR Calculator
Calculate the Price-to-Book Ratio (PBR) to evaluate a company's stock price relative to its book value. Ideal for assessing stock valuation.
※ Use if necessary
PBR Calculator
Determine the Price-to-Book Ratio (PBR) based on the stock's market price per share, total assets, total liabilities, and number of outstanding shares.
These results are for reference only and were developed for educational and testing purposes. You can also directly access and review the source code, including the logic and free APIs used on this page.
Calculation Results
PBR Calculator Guide
The PBR Calculator is a tool designed to compute the Price-to-Book Ratio (PBR), which measures a company's market price per share relative to its book value per share. This guide provides instructions for using the calculator and objective information about the PBR metric.
How to Use the PBR Calculator
Follow these steps to calculate the Price-to-Book Ratio:
- Enter the Market Price: Input the current market price per share of the company’s stock.
- Enter Total Assets: Input the company’s total assets, found in its financial statements.
- Enter Total Liabilities: Input the company’s total liabilities, also from financial statements.
- Enter Outstanding Shares: Input the total number of outstanding shares.
- Calculate: Click "Calculate PBR" to view the results.
Understanding PBR
The Price-to-Book Ratio (PBR) is a financial metric used to compare a company’s market value to its book value.
Formula
PBR = Market Price per Share / Book Value per Share
Book Value per Share = (Total Assets - Total Liabilities) / Number of Outstanding Shares
- Market Price per Share: The current trading price of a single share.
- Total Assets: The total value of a company’s assets.
- Total Liabilities: The total value of a company’s debts.
- Number of Outstanding Shares: The total number of shares issued by the company.
Interpretation
The PBR provides insight into how the market values a company relative to its accounting value:
- PBR > 1: The market values the company higher than its book value, suggesting growth expectations or intangible assets.
- PBR < 1: The market values the company below its book value, which may indicate undervaluation or financial distress.
- PBR = 1: The market price aligns with the book value.
Factors Affecting PBR
Several factors influence a company’s PBR:
Industry Norms
PBR varies by industry due to differences in asset structures.
- Tech companies often have higher PBRs due to intangible assets like intellectual property.
- Manufacturing firms may have lower PBRs tied to tangible assets.
Market Conditions
Economic trends and investor sentiment affect stock prices and thus PBR.
- Bull markets may inflate PBRs.
- Bear markets may depress PBRs.
Company Performance
Profitability and growth prospects impact market perception.
- High-growth firms typically have elevated PBRs.
- Struggling firms may see lower PBRs.
Typical PBR Ranges
PBR values depend on industry and economic context (based on general trends):
Technology Sector
- 3.0 - 10.0 (high growth potential)
Financial Sector
- 0.8 - 2.0 (asset-heavy)
Manufacturing Sector
- 1.0 - 3.0 (stable asset base)
Final Tips for Using the Calculator
- Use current and accurate data from reliable financial sources.
- Compare the PBR with industry averages for context.
- Consider additional metrics (e.g., P/E ratio) for a comprehensive analysis.
- Consult financial statements or professionals for precise asset and liability data.
Results are estimates and may differ from real-time market data due to fluctuations or incomplete information.