What it is
P/B divides the share price by book value per share (BPS), comparing the price to what shareholders would own on paper after all debts were paid.
Formula
P/B = share price ÷ BPS. A KRW 20,000 stock with BPS of KRW 40,000 trades at 0.5x — half its book value.
What to keep in mind
Low P/B stocks look cheap but may earn poor returns or carry overstated assets. The ratio is used heavily for banks, insurers and holding companies, and works best alongside ROE. Korea's "Value-up" push has put low-P/B companies in the spotlight.
This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.