Market to Book (Price to Book) Ratio Template
Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets.
Market to Book (Price to Book) Ratio Template
This market to book (price to book) ratio template allows you to calculate the Market/Book ratio using the market capitalization and the net book value.
Here is a preview of the market to book ratio template:
Download the Free Template
Enter your name and email in the form below and download the free template now!
The Market to Book ratio (or Price to Book ratio), is a financial valuation metric used to evaluate a company’s current market value relative to its book value. The market value is the current stock price of all outstanding shares, while the book value is the amount that would be left if the company liquidated all of its assets and repaid all of its liabilities. The book value equals the net assets of the company and comes from the balance sheet. In other words, the ratio is used to compare a business’s net assets that are available in relation to the sales price of its stock.
The Market to Book formula is:
Market Capitalization / Net Book Value or Share Price / Net Book Value per Share
where,
Net Book Value = Total Assets – Total Liabilities
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.
Analyst Certification FMVA® Program
Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.
A well rounded financial analyst possesses all of the above skills!
Additional Questions & Answers
CFI is the global institution behind the financial modeling and valuation analyst FMVA® Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.
In order to become a great financial analyst, here are some more questions and answers for you to discover:
- What is financial modeling?
- How do you build a DCF model?
- What is sensitivity analysis?
- How do you value a business?
