# 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 |

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