Stocks and Bonds

How To Calculate The Book Value Per Share & Price to Book (P/B) Ratio Using Market Capitalization

This video explains how to calculate the book value per share given shares outstanding and how to calculate the price to book ratio given the market capitalization. It also explains how to calculate the P/B ratio from the book value per share. The book value of the entire company is difference between the tangible assets and the total liabilities.

Disclaimer:
The information in this video is used for educational purposes only. It should not be construed as financial advice. I’m not a financial advisor nor am I recommending which stocks you should invest in. My goal in this video is to simply explain how things work. Investments in stocks involve substantial risk including total loss of principal. It is wise for you to do your own research and due diligence before making any investment decisions.