Price-to-Book Ratio

A valuation metric comparing a company's stock price to its book value (total assets minus total liabilities) per share. A P/B ratio below 1.0 suggests the market values the company at less than its net asset value, which can indicate either a bargain or serious fundamental problems. Benjamin Graham, the father of value investing, used the price-to-book ratio as one of his primary screening criteria, and it remains a cornerstone of value-oriented strategies.