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Balance Sheet, Most Recent Stock PriceFormula
P/B Ratio = Price per Share / Book Value per ShareMeaning
Book value (BV) is already listed on the balance sheet, it's just under a different name: shareholder equity. Equity is the portion of the company that owners (i.e. shareholders) own free and clear. Dividing book value by the number of shares outstanding gives you book value per share.
Like P/E, the P/B ratio is essentially the number of dollars you'll have to pay for $1 of equity. And like P/E, there are different criteria for what makes a P/B ratio "high" or "low."
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