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Introduction
Price to book value measures the enterprise value of the company. It is considered to be more stable than P/E ratio in a volatile market.
Formula: Index market capitalization/ Gross book value or net-worth
where
Index market capitalization of the Index constituents is the sum total of the outstanding equity shares or units considered for index computation multiplied by the close price of each index constituent adjusted for factors such as free-float, capping factor etc. depending upon the index methodology; and
The networth reported by each index constituent in the annual financial report (consolidated financials) are cumulated and adjusted for factors such as free-float, capping factor etc. depending upon the index methodology to arrive at the gross book value. In case, consolidated financials of a company are not available, standalone financials in the annual financial report will be considered for that company.
Updated on: 31/08/2026
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