Valuation
What is Price-to-Book Ratio (P/B)?
Market capitalization divided by shareholders' equity on the balance sheet.
Book value is what would be left for shareholders if every asset were sold at its accounting value and every debt repaid. P/B matters most for banks, insurers and asset-heavy businesses. Software and brand-driven companies often trade at very high P/Bs because their most valuable assets never appear on the balance sheet.