Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report
Valuation
P/TBV — Price to Tangible Book Value
Stock price divided by tangible book value per share. Bank-specific.
Definition
P/TBV expresses how many times tangible book value the market is willing to pay for the bank's equity. The bank-sector equivalent of EV/EBIT.
Formula
Stock Price ÷ Tangible Book Value Per Share
Why it matters
Banks trade in a tight P/TBV range. Above 2x usually requires sustained ROTE well above cost of equity; below 1x signals expected value destruction or distress. P/TBV is the first valuation lens any bank investor should apply.
How Standard Equity uses it
Substituted for EV/EBIT in bank reports.
The metric
| Category | Valuation |
|---|---|
| Unit | x |
| Applies to | Banks only |