Google finance uses the price to book ratio. However, in the video Warren Buffet stocks basics, Preston is using price to book value. Are these the same. I am assuming they are, however, I wanted to double check.

P/B can be distorted by share buy-backs and excessive debt so this should be considered when using this ratio, further if one is unsure of the value of intangible assets such as Goodwill one can use a more conservative valuation such as P/TBV(Tangible Book Value) which is;

Price-to-Tangible book value ratio(P/TBV) = Price per share/Tangible book value per share

## Comments

Yes, they are the same ratio which is;

Price-to-book value ratio(P/B)

= Price per share/Book value per share

P/B can be distorted by share buy-backs and excessive debt so this should be considered when using this ratio, further if one is unsure of the value of intangible assets such as Goodwill one can use a more conservative valuation such as P/TBV(Tangible Book Value) which is;

Price-to-Tangible book value ratio(P/TBV) = Price per share/Tangible book value per share

Regards,

Anaximander