Price-to-book (P/B): what it is and how to read it
It compares the share price with the book value (shareholders' equity) per share. It answers: how much do I pay for each unit the company has on its balance sheet, after subtracting its debts?
How it is calculated
P/B = share price / (shareholders' equity / number of shares).
How to read it
Below 1, the market values the company at less than its balance sheet says. It is very useful for banks, insurers and real estate, whose business sits on the balance sheet. For software or brand companies it says little, because their value lies in assets that are not on the balance sheet.
Price-to-book in the MeridIAn ranking
Among the 2,037 companies in the ranking with data, the median Price-to-book is 2.8: half are below and half above. The lowest 25% are below 1.6 and the highest 25% above 5.7.
For example: NVIDIA, 24.3; Apple, 46.3; Alphabet, 6.8; Banco Santander, 1.6.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | 2.3 | 140 |
| Communication Services | 2.3 | 93 |
| Consumer Cyclical | 2.8 | 211 |
| Consumer Defensive | 2.7 | 120 |
| Energy | 2.3 | 101 |
| Financial Services | 1.8 | 346 |
| Healthcare | 4.0 | 199 |
| Industrials | 4.0 | 376 |
| Real Estate | 1.5 | 96 |
| Technology | 6.1 | 262 |
| Utilities | 2.0 | 91 |
Lowest Price-to-book
What to watch out for
A low P/B can hide assets worth less than the books say. Look at it with the ROE: a high P/B makes sense if the company earns a high return on its equity.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.