Full formBusiness & Corporate
PBVstands forPrice to Book Value
Full Form of PBV
What is PBV?
Price to Book Value (PBV) is a financial ratio used to compare a company's current market price per share to its book value per share. Book value is the net asset value of a company, calculated as total assets minus intangible assets and liabilities. In the Indian context, PBV is widely used by investors and analysts to assess whether a stock is undervalued or overvalued, particularly in sectors like banking and finance where tangible assets are significant. It is a key metric in fundamental analysis, often employed when evaluating public companies listed on the NSE or BSE. The ratio is also relevant for competitive exams such as the RBI Grade B, SEBI Grade A, and CFA, where candidates need to understand valuation multiples. A PBV below 1 may indicate that the stock is trading below its intrinsic value, while a high PBV suggests growth expectations. However, it is less useful for service or technology firms with few tangible assets. In India, PBV is commonly cited in stock research reports, investment newsletters, and financial news channels like CNBC TV18 and ET Now.
PBV का फुल फॉर्म
मूल्य से पुस्तक मूल्य अनुपात
Example
The PBV ratio of State Bank of India is currently 1.5, which is considered reasonable for a public sector bank in India.
PBV — frequently asked questions
What is the full form of PBV?
PBV stands for Price to Book Value, a financial ratio used to compare a company's market price per share to its book value per share.
How is PBV used in Indian stock market investing?
Indian investors use PBV to identify undervalued stocks, especially in banking and finance sectors, by comparing the ratio to industry averages.
What is a good PBV ratio for Indian banks?
A PBV ratio between 1 and 2 is generally considered fair for Indian public sector banks, while private banks may trade at higher PBV due to growth prospects.