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P/B RATIO

Price divided by book value.

Published by The Retail Trader · JUL 31, 2026 · Market Basics

P/B Ratio — Price divided by book value. This is seen more in asset-heavy businesses (like banks).

WHERE THIS FITS IN

This term comes under Market Basics, in the "COMPANY NUMBERS" section. There is a business behind the chart. These are the basic numbers that come in the news after every result:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Revenue / Topline
• Net Profit / Bottomline
• EPS (Earnings Per Share)
• P/E Ratio
• Book Value
• Dividend Yield
• ROE (Return on Equity)
• ROCE
• Debt-to-Equity
• Operating Margin
• Promoter Holding
• Pledged Shares

To read the entire group and all its examples in one place, see the journal "MARKET BASICS: ABC of Market" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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