Coins of the Swiss franc are used only outside of Liechtenstein.
The price-to-book ratio , or P / B ratio , is a financial ratio used to compare a company 's current market price to its book value .. financial ratio. financial ratio. book value. book value. It is also sometimes known as a Market-to-Book ratio .. The calculation can be performed in two ways , but the result should be the same each way .. In the first way , the company 's market capitalization can be divided by the company 's total book value from its balance sheet .. book value. book value. market capitalization. market capitalization. balance sheet. balance sheet. The second way , using per-share values , is to divide the company 's current share price by the book value per share -LRB- i.e. its book value divided by the number of outstanding shares -RRB- .. book value. book value. As with most ratios , it varies a fair amount by industry .. Industries that require more infrastructure capital -LRB- for each dollar of profit -RRB- will usually trade at P / B ratios much lower than , for example , consulting firms .. P / B ratios are commonly used to compare banks , because most assets and liabilities of banks are constantly valued at market values .. A higher P / B ratio implies that investors expect management to create more value from a given set of assets , all else equal -LRB- and / or that the market value of the firm 's assets is significantly higher than their accounting value -RRB- .. P / B ratios do not , however , directly provide any information on the ability of the firm to generate profits or cash for shareholders .. This ratio also gives some idea of whether an investor is paying too much for what would be left if the company went bankrupt immediately .. bankrupt. bankrupt. For companies in distress , the book value is usually calculated without the intangible assets that would have no resale value .. book value. book value. In such cases , P / B should also be calculated on a `` diluted '' basis , because stock options may well vest on sale of the company or change of control or firing of management .. It is also known as the market-to-book ratio and the price-to-equity ratio -LRB- which should not be confused with the price-to-earnings ratio -RRB- , and its inverse is called the book-to-market ratio .. price-to-earnings ratio. price-to-earnings ratio