The price-to-book ratio measures how much investors pay for each dollar of a company’s equity. It compares market value with net assets reported on the balance sheet, making it especially useful for capital-intensive companies. section 2.4.4
Cross-company comparison
The ratio varies substantially across sectors: NVIDIA is listed at 41.22, Apple at 45.10, Sempra at 1.63, Walmart at 9.32, and Coca-Cola at 11.72. Interpret these figures alongside business type and other valuation measures rather than treating a single ratio as a verdict. section 2.4.4
Table 2.8 Earnings ratios for NVIDIA, Apple, Sempra, Walmart, and Coca-Cola
|
Company
|
Forward P/E
|
Trailing P/E
|
PEG ratio
|
Price-to-sales
|
Price-to-book
|
Beta
|
|---|---|---|---|---|---|---|
|
NVIDIA (NVDA)
|
34.40
|
45.72
|
1.76
|
23.27
|
41.22
|
2.122
|
|
Apple (AAPL)
|
24.54
|
31.76
|
1.85
|
7.61
|
45.10
|
1.211
|
|
Sempra (SRE)
|
14.95
|
16.89
|
2.03
|
3.76
|
1.63
|
0.656
|
|
Walmart (WMT)
|
35.83
|
41.65
|
3.72
|
1.14
|
9.32
|
0.693
|
|
Coca-Cola (KO)
|
24.02
|
28.65
|
4.41
|
6.55
|
11.72
|
0.46
|
|
Data taken from Seeking Alpha on June 8, 2025 (
https://seekingalpha.com)
|
Compare price-to-book with forward P/E, trailing P/E, PEG ratio, price-to-sales, and beta across five companies. section 2.4.4
