GlossaryIntermediate
Price-to-Book (P/B) Ratio
A traditional equity valuation multiple comparing share price to a company's accounting book value per share.
The Price-to-Book (P/B) ratio divides a company's share price by its book value per share (total assets minus total liabilities, divided by shares outstanding), comparing the market's valuation to the company's accounting net asset value.
Like P/E, this is a traditional equity-market concept with no direct crypto equivalent for most tokens, which don't have a comparable accounting balance sheet structure. See Kaavon's dedicated P/B Ratio article for the full calculation and context.
Examples
- A P/B ratio below 1 means a company trades below its accounting book value, which traditional value investors sometimes treat as a starting point for further research.
- P/B relies on a company's accounting balance sheet, a structure most crypto tokens simply don't have.