A P/B below 1× means the market values the company at less than the net assets on its balance sheet; above 1× means investors expect it to earn good returns on those assets.
P/B is most useful for banks, insurers and asset-heavy companies, where book value is a meaningful anchor. It is usually read together with return on equity.
Formula
P/B = share price ÷ book value per share
P/B ratio (price-to-book) on the Pakistan Stock Exchange
Across 413 listed companies with the figure, the median is 1.02×.