Company analysis
What is price to book?
The share price compared with the company book value per share.
Explained in more detail
It is most useful for banks and other asset-heavy businesses. A ratio below one can mean the market expects losses, or that the assets are worth less than the accounts claim. It is not automatically a bargain.
An example
For instanceA ₹300 share with a book value of ₹150 per share trades at 2 times book.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time price to book appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.