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Market to Book Ratio Formula

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Market to Book value is a financial metric used to compare the market value of a company's stock to its book value. Check FAQs

MB = \frac{MC}{BV E}

MB - Market to Book value?MC - Market Capitalization?BV_E - Book Value of Equity?

Market to Book Ratio Example

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With units

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Here is how the Market to Book Ratio equation looks like with Values.

Here is how the Market to Book Ratio equation looks like with Units.

Here is how the Market to Book Ratio equation looks like.

93.1 = \frac{931000}{10000}

93.1 = \frac{931000}{10000}

93.1 = \frac{931000}{10000}

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Market to Book Ratio Solution

Follow our step by step solution on how to calculate Market to Book Ratio?

FIRST Step Consider the formula

MB = \frac{MC}{BV E}

Next Step Substitute values of Variables

∴

MB = \frac{931000}{10000}

Next Step Prepare to Evaluate

∴

MB = \frac{931000}{10000}

LAST Step Evaluate

∴

MB = 93.1

Market to Book Ratio Formula Elements

Variables

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.

Symbol: MB

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Market to Book value

Market Capitalization

Market Capitalization is a measure of the total market value of a publicly traded company's outstanding shares of stock.

Symbol: MC

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Market Capitalization

Book Value of Equity

Book Value of Equity represents the residual interest in the assets of a company after deducting its liabilities.

Symbol: BV_E

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Book Value of Equity

Other formulas in Performance Ratio category

Go Cash Flow to Sales

CFS = \frac{OCF}{S}

Go Cash to Net Income ratio

CFI = \frac{OCF}{NI}

Go Cash Return on Assets

ROA c = \frac{OCF}{TAA}

Go Return on Equity using Shareholder's Equity

ROE = (\frac{NI}{E avg}) \cdot 100

How to Evaluate Market to Book Ratio?

Market to Book Ratio evaluator uses Market to Book value = Market Capitalization/Book Value of Equity to evaluate 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 evaluate Market to Book Ratio using this online evaluator? To use this online evaluator for Market to Book Ratio, enter Market Capitalization (MC) & Book Value of Equity (BV_E) and hit the calculate button.

FAQs on Market to Book Ratio

What is the formula to find Market to Book Ratio?

The formula of Market to Book Ratio is expressed as Market to Book value = Market Capitalization/Book Value of Equity. Here is an example- 93.1 = 931000/10000.

How to calculate Market to Book Ratio?

With Market Capitalization (MC) & Book Value of Equity (BV_E) we can find Market to Book Ratio using the formula - Market to Book value = Market Capitalization/Book Value of Equity.

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Market to Book Ratio Formula

Market to Book Ratio Example

Market to Book Ratio Solution

Market to Book Ratio Formula Elements

Other formulas in Performance Ratio category

How to Evaluate Market to Book Ratio?

FAQs on Market to Book Ratio

Variable Name