Market to Book Ratio Calculator

✖Market Capitalization is a measure of the total market value of a publicly traded company's outstanding shares of stock.ⓘ Market Capitalization [MC]			+10% -10%
✖Book Value of Equity represents the residual interest in the assets of a company after deducting its liabilities.ⓘ Book Value of Equity [BV_E]			+10% -10%

✖Market to Book value is a financial metric used to compare the market value of a company's stock to its book value.ⓘ Market to Book Ratio [MB]

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Formula

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Market to Book Ratio

Formula

`"MB" = "MC"/"BV"_{"E"}`

Example

`"93.1"="931000"/"10000"`

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Market to Book Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Market to Book value = Market Capitalization/Book Value of Equity
MB = MC/BV_E
This formula uses 3 Variables

Variables Used

Market to Book value - Market to Book value is a financial metric used to compare the market value of a company's stock to its book value.
Market Capitalization - Market Capitalization is a measure of the total market value of a publicly traded company's outstanding shares of stock.
Book Value of Equity - Book Value of Equity represents the residual interest in the assets of a company after deducting its liabilities.

STEP 1: Convert Input(s) to Base Unit

Market Capitalization: 931000 --> No Conversion Required
Book Value of Equity: 10000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

MB = MC/BV_E --> 931000/10000

Evaluating ... ...

MB = 93.1

STEP 3: Convert Result to Output's Unit

93.1 --> No Conversion Required

FINAL ANSWER

93.1 <-- Market to Book value

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Nayana Phulphagar

Institute of Chartered and Financial Analysts of India National college (ICFAI National College), HUBLI

Nayana Phulphagar has verified this Calculator and 1400+ more calculators!

< 9 Performance Ratio Calculators

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Cash Flow per Share

Go Cash Flow per Share = (Operating Cash Flow-Preferred Dividends)/Total Common Shares Outstanding

Enterprise Value

Go Enterprise Value = Market Capitalization+Total Debt of Company-Cash and Cash Equivalents

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Market to Book Ratio

Go Market to Book value = Market Capitalization/Book Value of Equity

Return on Equity using Shareholder's Equity

Go Return on Equity = (Net Income/Average Shareholders' Equity)*100

Cash Return on Assets

Go Cash Return on Assets = Operating Cash Flow/Total Average Assets

Cash to Net Income ratio

Go Cash Flow to Income = Operating Cash Flow/Net Income

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

Market to Book Ratio Formula

Market to Book value = Market Capitalization/Book Value of Equity
MB = MC/BV_E

What is Market to Book Ratio?

Market to Book Value (M/B), also known as Price to Book Value (P/B), is a financial ratio that compares a company's market value (its current share price) to its book value per share. It is calculated by dividing the market price per share by the book value per share.
M/B Ratio < 1: A Market to Book Value ratio of less than 1 indicates that the company's market value is lower than its book value per share. This suggests that the company is trading at a discount to its net asset value. Investors may interpret this as an indication that the stock is undervalued, potentially presenting an investment opportunity.
M/B Ratio = 1: A Market to Book Value ratio of 1 means that the market price per share is equal to the book value per share. In this case, the market is valuing the company at its accounting value. Some investors may view this as a fair valuation, while others may see it as neutral.

How to Calculate Market to Book Ratio?

Market to Book Ratio calculator uses Market to Book value = Market Capitalization/Book Value of Equity to calculate the Market to Book value, The Market to Book Ratio formula is defined as is a financial ratio that compares a company's market value to its book value per share. Market to Book value is denoted by MB symbol.

How to calculate Market to Book Ratio using this online calculator? To use this online calculator for Market to Book Ratio, enter Market Capitalization (MC) & Book Value of Equity (BV_E) and hit the calculate button. Here is how the Market to Book Ratio calculation can be explained with given input values -> 93.1 = 931000/10000.

FAQ

What is Market to Book Ratio?

The Market to Book Ratio formula is defined as is a financial ratio that compares a company's market value to its book value per share and is represented as MB = MC/BV_E or Market to Book value = Market Capitalization/Book Value of Equity. Market Capitalization is a measure of the total market value of a publicly traded company's outstanding shares of stock & Book Value of Equity represents the residual interest in the assets of a company after deducting its liabilities.

How to calculate Market to Book Ratio?

The Market to Book Ratio formula is defined as is a financial ratio that compares a company's market value to its book value per share is calculated using Market to Book value = Market Capitalization/Book Value of Equity. To calculate Market to Book Ratio, you need Market Capitalization (MC) & Book Value of Equity (BV_E). With our tool, you need to enter the respective value for Market Capitalization & Book Value of Equity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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