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:

Also known as: P/B ratio.

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Calculate the Price to Book Ratio (PB) in Python

The Price to Book Ratio (PB) is available in 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:

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.

Related Valuation Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.