# Price to Tangible Book Value (PTBV).

Price to Tangible Book Value (PTBV) is a ratio that measures the market value of a company's equity relative to the book value of its assets. The ratio is calculated by dividing the market value of a company's equity by the book value of its assets.

The PTBV ratio is used to assess whether a company is undervalued or overvalued by the market. A company with a PTBV ratio of less than 1 is considered to be undervalued, while a company with a PTBV ratio of greater than 1 is considered to be overvalued.

The PTBV ratio is not a perfect measure of a company's value, as it does not take into account intangible assets such as intellectual property or goodwill. However, it is a useful tool for investors to use in conjunction with other ratios and valuation methods to arrive at an estimate of a company's true value. What is EPS measured in? EPS stands for earnings per share. It is a financial ratio that measures the profitability of a company. EPS is calculated by dividing the company's net income by the number of shares of stock outstanding.

How do you calculate book value of intangible assets? The book value of intangible assets is calculated by subtracting the carrying value of the intangible assets from the total assets. The carrying value of the intangible assets is the original cost of the intangible assets minus the accumulated amortization.

### What is the difference between book value and tangible book value?

The book value of a company is the value of the company's assets minus the value of its liabilities. The tangible book value of a company is the book value of the company's assets minus the value of its intangible assets.

Intangible assets are those assets that do not have a physical form, such as patents or copyrights. They are often difficult to value, which is why they are excluded from the tangible book value.

The book value is a measure of a company's financial health, while the tangible book value is a measure of the company's physical assets. The book value is important for investors to consider because it shows how much of the company's value is tied up in its assets, and how much is debt. The tangible book value is important for creditors to consider because it shows how much of the company's value is backed by physical assets.

##### Why is price-to-book value used for banks?

The price-to-book value (P/B) ratio is a popular valuation metric for banks, as the book value of a bank's assets provides a good estimate of the bank's liquidation value. The P/B ratio also gives analysts a good idea of how much of a premium investors are willing to pay for a bank's earnings power.

One reason why the P/B ratio is so popular among bank analysts is that banks are highly leveraged businesses, which means that their book value is highly sensitive to changes in the value of their assets. This makes the P/B ratio a good metric for assessing changes in a bank's valuation.

Another reason why the P/B ratio is popular among bank analysts is that banks tend to have a lot of intangible assets, such as goodwill and brand value. These intangible assets can be hard to value, but they are typically reflected in the book value of a bank's assets. This makes the P/B ratio a good metric for assessing the value of a bank's intangible assets.

##### What does price to book value ratio indicate?

The price to book value ratio (PBVR) is a financial ratio that compares a company's market capitalization to its book value. The market capitalization is the total value of all the company's outstanding shares. The book value is the total value of all the company's assets, minus all its liabilities.

The PBVR can be used to give an indication of a company's valuation. A high PBVR indicates that the market is valuing the company at a higher price than its book value. This could be because the market believes that the company's future earnings will be higher than its current book value. A low PBVR indicates that the market is valuing the company at a lower price than its book value. This could be because the market believes that the company's future earnings will be lower than its current book value.

The PBVR is just one tool that can be used to valuate a company. It is important to remember that the market is constantly changing and that a company's valuation can change very quickly.