{"id":45255,"date":"2023-04-05T12:52:14","date_gmt":"2023-04-05T10:52:14","guid":{"rendered":"https:\/\/staging.captrader.com\/glossar\/kurs-buchwert-verhaeltnis-kbv\/"},"modified":"2024-03-24T15:12:28","modified_gmt":"2024-03-24T14:12:28","slug":"price-to-book-value-ratio-kbv","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/kurs-buchwert-verhaeltnis-kbv\/","title":{"rendered":"Price-to-book ratio (P\/B ratio)"},"content":{"rendered":"

Similar to the P\/E ratio (price\/earnings ratio) and the KUV (price\/sales ratio), the KBV (price\/book ratio) is a share ratio that is used for the fundamental valuation of a company or a share. Here, the share price is put in relation to the book value per share. In this article, you will learn what the P\/B ratio is, how it is calculated and what the price-to-book ratio means.<\/p>\n\n\n\n

What is the price-to-book ratio (P\/B ratio)?<\/h2>\n\n\n\n

The price-to-book ratio of a share (KBV for short) is determined by dividing the share price by the book value per share. A P\/B ratio of over one means that the company's stock market value is higher than its book value. A KBV of less than one means that the company's stock market value is lower than its book value.<\/p>\n\n\n\n

P\/B = Share price \/ Book value per share<\/p>\n\n\n\n

The stock market value of a company is also referred to as its market capitalization. Market capitalization can be calculated by multiplying the number of shares (outstanding shares) by the share price. The price-to-book ratio expresses the difference between market capitalization and book value. So instead of the formula used above, the P\/B ratio can also be calculated as follows:<\/p>\n\n\n\n

KBV = market capitalization \/ book value<\/p>\n\n\n\n

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You can read the market capitalization in the Trader Workstation in the financial instrument info<\/figcaption><\/figure>\n\n\n\n

Carrying amount<\/h3>\n\n\n\n

The Carrying amount<\/a> describes the total value of all assets of a company (acquisition or production costs, adjusted for depreciation and write-ups). You can find more information in our article on book value.<\/p>\n\n\n\n

Book value per stock<\/h3>\n\n\n\n

The book value per share can be determined by dividing the book value of a share by the total number of all shares. For more information, please refer to our article on book value per share.<\/p>\n\n\n\n

Interpretation of the KBV<\/h2>\n\n\n\n

There is no generally applicable rule on how to interpret a stock's P\/B ratio, or at what point a P\/B ratio is considered high or low. Similar to the price-earnings ratio (P\/E) and the price-sales ratio (P\/S), the P\/B ratio allows an assessment of whether a share is relatively expensive or cheap, or overvalued or undervalued.<\/p>\n\n\n\n

A high P\/B ratio initially indicates that the market values a company highly. On the one hand, this can be an overvaluation, on the other hand, it can also be interpreted as high growth potential.<\/p>\n\n\n\n

A low P\/B ratio, on the other hand, can be interpreted either as a favorable buying opportunity or as a warning that a company has serious problems and that declining sales and profits are to be expected.<\/p>\n\n\n\n

It is often observed that entire industries typically have a high or low P\/B ratio. It therefore makes little sense to compare the P\/B ratio of industries with strong growth potential or growth stocks with the P\/B ratio of stocks\/industries that have little growth potential. In addition, certain industries (such as the automotive industry) have more intrinsic value due to their business model than, for example, a software company, which also has an impact on the P\/B ratio.<\/p>\n\n\n\n

The price-to-book ratio should therefore not be considered in isolation, but in combination with other fundamental share ratios and taking into account the specifics of the respective industry.<\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-45255","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/45255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=45255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}