Price-to-Book (P/B) Ratio
مكرر القيمة الدفترية
The price-to-book ratio compares a company’s share price with its book value per share, which is shareholders’ equity divided by the number of shares. A ratio of 1 means the stock trades at exactly its accounting net worth. The multiple is used widely for valuing banks and other asset-heavy businesses on the EGX.
Example
A bank whose book value is 40 EGP per share trading at 60 EGP has a P/B of 1.5. At 30 EGP it would trade at 0.75 — below the accounting value of its net assets.
Why it matters
It is most useful for banks and asset-heavy businesses, where the balance sheet is a meaningful description of what the company is. For a company whose value is people or brand, book value captures little of it.
A common mistake
Assuming below book value means a bargain. A company can trade under book because the market doubts those assets are worth their stated value, or because it is expected to lose money and erode them.
Live example from the Egyptian market
Commercial International Bank - Egypt (CIB) S.A.E. (COMI) trades at 2.02 times book value today. Details →
Data as of ; refreshes with every session or disclosure.