Equity Valuation

Price-to-Book Ratio

Definition

What is Price-to-Book Ratio?

Share priceThe market price at which one share is quoted or traded. divided by book value per shareOrdinary shareholders' equity divided by ordinary shares outstanding..

Example in practice

How This Looks in Practice

A bank at ₦15 with ₦10 book value per share trades at 1.5 times book.

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Related Terms

Equity Valuation

Earnings Per Share

Net income attributable to ordinary shareholders divided by weighted average ordinary shares.

Equity Valuation

Diluted Earnings Per Share

Earnings per share assuming potentially dilutive securities convert into ordinary shares.

Equity Valuation

Basic Earnings Per Share

Earnings per share calculated using actual weighted average ordinary shares outstanding.

Cash Flow Analysis

Operating Cash Flow

Cash generated or used by a company's core operations.

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