When calculating PB ratio, can you use the projected book value?
Also, can the book value be the total equity on the balance sheet or it has to be the book value of all outstanding shares?
| +186 | UBS Accused of Favoring H-1B Workers While Cutting U.S.-Born Employees | 46 | 1h |
| +83 | IB Energy Drink Tier List / Ranking | 57 | 2h |
| +76 | PJT M&A Group Selection 2026 | 13 | 13h |
| +51 | ONLY THESE BANKS OR YOU STRUCK OUT | 14 | 1h |
| +36 | Quick Thoughts on CVC AI Sale Process | 7 | 3d |
| +33 | Feedback for internship first desk at IBD BB - personal fit, "don't be too confident" | 23 | 1d |
| +28 | Does BofA still pay its associates rat pellets? | 14 | 4h |
| +18 | What happened to Greenhill | 8 | 3d |
| +18 | Updated JPM Group Rankings | 30 | 5h |
| +18 | VP Deal Origination Credit | 2 | 12h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
if you use projected book, you are basically doing a forward P/B ratio, which is fine, although I don't know when you'd do that. It's more likely you'd use forward EPS or forward EBITDA to get a forward Price-to-X multiple.
The second question is confusing...book value is just the value of the assets minus intangible assets (shit you can't sell). To get P/B it's [Price / (book value - liabilities)].
Some people consider book value to be tangible - intangible - liabilities, too.
It sounds like Assets - Liabilities = Equity.
So can you say that P/B is ( Price / Total Equity per Share)
It's Tangible Assets - Liabilities. For some firms that could be a huge difference. Remember, if you were going to sell your firm to the world, it can't buy goodwill or other intangible items you carry on your BS.
Ipsum voluptas aut veritatis enim molestiae. Rem qui nihil voluptas quas et. Rem facilis quaerat neque et earum ea officia aperiam. Necessitatibus voluptas nihil quis assumenda occaecati. Quae neque perspiciatis neque a et ut. Quasi tenetur sint tempore omnis.
Eius odio officiis nesciunt quis autem. Dicta eveniet quasi soluta ducimus molestiae. Impedit quo officia dolorum provident vero assumenda veniam in. Officiis commodi sint ut ut dolorem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...