Price to Book Value

Book Value is what would be left over for shareholders if the company were sold and all its loans were paid off. It is calculated by subtracting total liabilities (money owed) from total assets (all that it owns) and dividing the result by the total number of shares.

Price to BV is calculated by dividing the latest price per share by the BV.

A company with a stock price of Rs 12 per share and a BV of Rs 6 per share is trading at two times BV.

Generally, the higher it is, the riskier the stock.