According to the data till last Friday, i.e. June 10, 23 commercial banks have P/B ratio of less than 2. At the same time, Nabil Bank has the highest P/B ratio of 4.46 times and Nepal Bank has the lowest of 1.21 times.
The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current market value to its book value. Book value can be considered a real asset of any given company as it is the remaining value of all assets minus liabilities owned by a company.
Generally, the market value of equity is always higher than the book value. Companies that have P/B ratio less than 3 are considered less risky and ideal for investment.
