Price-To-Book ratio?

Question

Is Price / NAV equals to PTB ratio? I'm confused with all the jargon and formulas.... Thanks

Answer 1

No.  

P/B =  share price / total assets -(intangible assets + liabilities)

NAV = assets - liabilites

The difference is whether or not intangible assets are subtracted.

NAV is most commonly used in reference to mutual funds, not stock valuation.

The following link is an excellent resource for learning what investing terms mean.

http://www.investopedia.com/terms/p/pric...