Enter the total market value ($) and the total book value ($) into the Market to Book Ratio Calculator. The calculator will evaluate and display the Market to Book Ratio.
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Market to Book Ratio Formula
The following formula is used to calculate the Market to Book Ratio.
MBVR = MV / BV * 100
- Where MBVR is the Market to Book Ratio (%)
- MV is the total market value ($)
- BV is the total book value ($)
To calculate the market to book ratio, divide the total market value by the total book value, then multiply by 100.
How to Calculate Market to Book Ratio?
The following example problems outline how to calculate Market to Book Ratio.
Example Problem #1:
- First, determine the total market value ($).
- The total market value ($) is given as: 275.
- Next, determine the total book value ($).
- The total book value ($) is provided as: 900.
- Finally, calculate the Market to Book Ratio using the equation above:
MBVR = MV / BV * 100
The values given above are inserted into the equation below and the solution is calculated:
MBVR = 275 / 900 * 100 = 30.55 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total market value ($) = 800
total book value ($) = 10000
Test your knowledge using the equation and check your answer with the calculator above.
MBVR = MV / BV * 100 = ?
