Enter the total market capitalization and the total book value. The calculator will evaluate and display the market to book value.
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Market to Book Value Formula
The following equation is used to calculate a market-to-book value ratio.
MBV = MC / BV
- Where MBV is the market to book value ratio
- MC is the market capitalization of the company
- BV is the book value.
Market to Book Value Definition
A market to book value is a ratio used to analyze how the book value of a stock relates to its overall market cap. The higher the market cap the higher the market to book value ratio. Conversely the higher the book value the lower the ratio.
Market to Book Value Example
How to calculate market to book value?
- First, determine the market cap.
Calculate the total market capitalization of the company.
- Next, determine the book value.
Calculate the total book value of the stock.
- Finally, calculate the market to book value.
Use the equation above to calculate the market to book value.
A market to book value is the ratio of the market capitalization of a company to it’s book value.