i What this calculator does
Quick answer: Compare a share price to the net asset value behind it, and see the P/B, book value per share and the ROE it implies. With the default inputs (share price 142.00, total shareholders equity 18 500), it returns price to book of 9.06.
Price to book compares the market price to the accounting value of the company's net assets. It answers a narrow question: what is being paid for each rand of balance-sheet equity.
It is most useful where assets are real and measurable, which is why it dominates analysis of banks, insurers, property companies and miners. For an asset-light business the book value understates what the company is, and the ratio misleads.
This calculator is for educational purposes only. Results are estimates and may vary depending on market conditions, spreads, commissions, platform settings, and exchange rates. It should not be considered financial advice.
How to use the Price-to-Book Ratio Calculator
Open it and there is already an answer. Swap one figure and the effect of that figure alone becomes visible.
- 1. Share Price (R)
- 2. Total Shareholders Equity (R million)
- 3. Intangible Assets (R million) Goodwill and intangibles, for tangible book
- 4. Shares in Issue (million)
- 5. Net Profit (R million) For the implied return on equity
The result panel reports:
- Price to Book Rand paid per rand of equity
- Book Value Per Share Net assets per share
- Price to Tangible Book Excluding intangibles
Alongside the headline figures, the calculator reports market capitalisation, shareholders equity, premium to book, return on equity. Those are the numbers that usually explain why the headline result came out where it did.
The method is visible: the steps sit directly below the result.
See also: Discounted Cash Flow Calculator and Enterprise Value Calculator.
Common results
What the calculator returns as the share price changes, with every other input at its default (total shareholders equity 18 500, intangible assets 2 400, shares in issue 1 180, net profit 2 450).
| Share Price | Price To Book | Book Value Per Share | Price To Tangible Book |
|---|---|---|---|
| R40 | 2.55 | R15.68 | 2.93 |
| R75 | 4.78 | R15.68 | 5.50 |
| R150 | 9.57 | R15.68 | 10.99 |
| R300 | 19.14 | R15.68 | 21.99 |
| R750 | 47.84 | R15.68 | 54.97 |
| R1 500 | 95.68 | R15.68 | 109.94 |
Figures used in this calculator
The South African constants this calculator relies on, with the page that holds the current value and the date it was last verified.
- Company tax: 27%. Source: Company Tax Rates Reference (verified 29 September 2026).
- Securities Transfer Tax: 0.25% on share purchases. Source: JSE Trading Cost Schedule (verified 27 September 2026).
- JSE trading hours: 09:00 to 17:00 SAST. Source: JSE Trading Hours and Holidays (verified 27 September 2026).
How the calculation works
Five inputs drive the result: Share Price, Total Shareholders Equity, Intangible Assets, Shares in Issue and Net Profit. Intangible Assets: Goodwill and intangibles, for tangible book. Net Profit: For the implied return on equity. The book per share is R18 500m / 1 180m = R15.68. The p/b is R142.00 / R15.68 = 9.06. The tangible book is R16 100m / 1 180m = R13.64. The roe is R2 450m / R18 500m = 13.24%. The breakdown also lists share price, shareholders equity, less intangibles and tangible equity.
A worked example in rand
Run it with the inputs it opens with, share price R142.00, total shareholders equity 18 500 R million, intangible assets 2 400 R million, shares in issue 1 180 million and net profit 2 450 R million, and the price to book comes out at 9.06, rand paid per rand of equity. The other figures are book value per share R15.68 and price to tangible book 10.41. Now set the share price to 284: the price to book moves from 9.06 to 18.11 and the price to tangible book moves from 10.41 to 20.81. The book value per share does not change, because it does not depend on that input.
How to read the result
For the default case the verdict is: "At 9.06 times book, the price rests on earnings power rather than assets." Read it as a flag rather than advice: it tells you where the numbers sit relative to the usual rules of thumb. A single ratio is a starting question, not an answer: cheap can mean undervalued or deservedly cheap, and only the sector comparison and the earnings trend separate the two. South African Fuel Price and Levies explains the thinking behind these figures.
The South African angle
Using the price-to-book ratio calculator from South Africa adds a few local facts to the arithmetic. Earnings on the JSE are reported in rand but many large companies earn most of their revenue in dollars, so a rand valuation ratio moves with the exchange rate even when the business does not. South African company tax is 27%, with dividends then taxed at 20% in the shareholder's hands, so the after-tax yield of a JSE dividend is materially below the headline figure. Dual-listed companies such as the large miners and Richemont trade on the JSE at a rand price that tracks the foreign listing, so their rand valuation ratios move with the exchange rate daily. The price-to-book ratio calculator draws on the same figures, which are kept on the JSE indices reference and updated as they change.
Spotted an outdated figure? If a rate, limit or formula in this calculator no longer matches its source, email us the page and the source. A material correction is dated on the Updates Log.
Frequently asked questions
Does a P/B below 1 mean the share is cheap?
It means the market values the company below the accounting value of its net assets. Sometimes that is an opportunity; often it means the market doubts the assets are worth what the balance sheet says, or expects the company to destroy value. Banks trading below book usually reflect the second.
Why exclude intangibles?
Goodwill arises from acquisitions and represents what was paid above the assets acquired. In a liquidation it is worth nothing, so tangible book is the more conservative measure. For companies built through acquisition the two figures can differ enormously.
Which sectors is P/B useful for?
Banks, insurers, property companies and miners, where the balance sheet holds real and measurable assets. It is close to useless for software, services and brands, where the value sits in things accounting does not capture.
How does P/B relate to return on equity?
Closely. A company earning a high return on its equity deserves to trade above book, because each rand of equity produces more than a rand of value. The rough relationship is that P/B should rise with ROE, which is why the calculator shows both.
Is book value the same as net asset value?
In ordinary use, yes for a company: total assets less total liabilities. For a fund or REIT, net asset value has a specific meaning based on the market value of holdings rather than their accounting value.
Where do I find shareholders equity for a JSE company?
On the balance sheet in the annual or interim report, usually labelled total equity or equity attributable to owners of the parent. Use the attributable figure rather than total equity if there are minority interests.
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