Market to Book Ratio Calculator

The market-to-book value ratio is a ratio that simply compares the market value to the book value. It essentially checks how many times of book value the investors are valuing the business. Market-to-book value calculator makes it easy to calculate the ratio using the variable – book value, share price & the number of outstanding shares of the firm.

The formula for calculating market to book ratio is a very simple comparison of market value and book value

Market to Book Ratio = Market Capitalization / Book Value

or

Market to Book Ratio = Market Price per Share / Book Value per Share

Market to Book Value Calculator

How to Calculate Using Calculator?

You just need to enter the following fields in the calculator.

Share Price of the Firm

The latest price of the shares of the firm is easily available from stock exchange websites. It is advisable to check for any sudden big fluctuation in the price.

No. of Outstanding Shares

This can be availed from the annual financial report of the corporation.

Book Value of the Firm

This can be calculated from the balance sheet of the corporation. There are two ways to calculate it. First, take the total of the asset side of the balance sheet and deduct the liabilities, preference shares capital, and intangible assets. Second, simply take equity shareholder’s capital which includes equity capital and reserves, and surplus.

Excel Calculator – Market to Book Ratio

You can also download our excel based calculator for market to book ratio.

Excel Calculator For Market to Book Ratio (164 downloads )


Sanjay Borad

Sanjay Bulaki Borad

MBA-Finance, CMA, CS, Insolvency Professional, B'Com

Sanjay Borad, Founder of eFinanceManagement, is a Management Consultant with 7 years of MNC experience and 11 years in Consultancy. He caters to clients with turnovers from 200 Million to 12,000 Million, including listed entities, and has vast industry experience in over 20 sectors. Additionally, he serves as a visiting faculty for Finance and Costing in MBA Colleges and CA, CMA Coaching Classes.

1 thought on “Market to Book Ratio Calculator”

  1. Let i tell you something about Market to Book Ratio. Market to Book ratio is known as the Price to Book ratio.it is a financial valuation metric used to evaluate a company’s current market value relative to its book value. … 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.

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