Live data
JPM — P/B Ratio, Current Price. Open JPM on the Ledge to see current values.
Formula
P/B = Stock Price / Book Value Per Share
Key point
P/B below 1.0 means the stock trades for less than its net assets. Like buying a house for less than the value of its parts. Buffett looks for this.
Key point
P/B is most useful for asset-heavy industries (banks, insurance, REITs). It is less useful for tech companies where value comes from intangibles like software and brand.
Try it
Look up JPM (a bank) and check its **P/B ratio**. Then look up MSFT (a tech company). Notice the huge difference and consider why.
Key insight
Check-in
A regional bank trades at P/B 0.5x (50 cents on the dollar of book equity). Your instinct?
Check your understanding
Sit with the ideas.
A bank stock has P/B of 0.8x. What does this mean?
Why:
Try this in paper trading
Identify the moat. Then size the position.
Pick a company. Articulate its moat in one sentence: switching costs, network effects, intangibles, cost advantage, or efficient scale. Paper-buy a position size proportional to your confidence in that moat surviving 10 years.
Open paper portfolio →Practice mode — simulated trades, not investment advice.