P/B Book value MBA from a think tank Wikipedia (http://wiki.mbalib.com/) Book value (Price to book ratio or P / B), also known as the closing transaction Book value overview Book value of share price and net assets per share ratio. Book value can be used for investment analysis. Net assets per share book value of the stock, which is measured at cost, while the share price is the present value of these assets, it is the result of stock market transactions. Price higher than the book value of corporate assets when the quality of good development potential, otherwise poor-quality assets, no prospects. Quality stock market have exceeded the net assets per share, much general book value of 3 can set a good corporate image. Market price below the net asset per share of stock, as of goods below cost price, as are &quot;substandard.&quot; Of course, the &quot;substandard&quot; is not without purchase value, the problem is whether there will be transfer of the company, or acquisition of assets after the reorganization can improve profitability through the ability of the market price and the ratio between net assets per share, the lower the ratio of means lower risk. Book value formula Book value = share price / net assets per share. The amount of net assets is determined by stock companies operating conditions, shares of the company&#39;s operating performance better, faster appreciation of its assets, the higher the net value of the stock, so shareholders have the rights to more. Generally speaking, stocks with lower book value, investment value higher, on the contrary, the lower value of investments. However, investment value must be considered when judging the prevailing market environment and company operation, profitability and other factors.