Yahoo Finance gives the Price/Book and I'm guessing that Book is book value? I'm trying to get the Book Value from this equation, so is the below equation correct:

Book Value = Price divided by Price/Book

When fractions divided, they invert, so the prices will cancel leaving book. But since it's not clear if Book is Book Value, I'm not sure if this derives Book Value.

Example with Facebook:

Price is 180. Price/Book is 6.58. Book Value is 27.35?


Your math is correct, and gives you book value per share. So to get the total "book value" you need to multiply by the number of shares outstanding.

Since FB has about 2.98B shares outstanding, that implies a total book value of about $81.5 billion.

Which is fairly close to the published book value (assets - liabilities) in their latest quarterly balance sheet of $79.3B

  • Ah, ok. So Yahoo's Price/Book is actually Price/Book-Value-Per-Share. – KriyanshAurik Aug 14 '18 at 15:12
  • 1
    Yes, although the "per share" is implicit in both the price and the book value. (same for P/E, price/sales, and other similar ratios) – D Stanley Aug 14 '18 at 15:14

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