Price to Book Ratio (PB)
Calculate the price to book ratio, a valuation ratio that compares a company’s market price to its book value per share.
The price to book ratio is a key valuation metric that helps investors assess whether a company’s stock is overvalued or undervalued relative to its underlying net asset value.
The formula is as follows:
\[\text{Price to Book Ratio} = \text{Share Price} / \text{Book Value per Share}\]Also known as: P/B ratio.
Price to Book Ratio (PB) in Python
get_price_to_book_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_price_to_book_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
price_to_book_ratio = toolkit.ratios.get_price_to_book_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 47.4672 | 41.8616 | 48.9873 | 67.7525 | 55.3236 |
| TSLA | 39.5096 | 9.5752 | 13.8166 | 19.3742 | 19.3166 |
Parameters
get_price_to_book_ratio accepts the following parameters:
- diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.