What does stock PB mean?

In finance, stock PB refers to the Price-to-Book ratio, which is a measure used to evaluate a company's stock price in relation to its book value. The ratio is calculated by dividing the current stock price by the book value per share. The book value is the net asset value of a company, calculated by subtracting its total liabilities from its total assets. A low PB ratio may indicate that a stock is undervalued, as the market price is lower than the book value. On the other hand, a high PB ratio may suggest that a stock is overvalued, as the market price exceeds the book value. Investors use the PB ratio to assess the attractiveness of a stock and compare it to similar companies in the same industry. However, it is important to consider other factors such as the company's financial health, growth prospects, and industry trends when making investment decisions based on the PB ratio.