It stands for price to price to tangible book ratio; a financial ratio that relates an entity’s current market price to its tangible book value (TBV). It is calculated as the current price divided by the latest (most up to date) annual tangible book value per share (TBVPS):

PTBV = current price/ TBVPS

The ratio reflects the price paid for a share relative to tangible book value (stockholder’s equity, net of goodwill and intangible assets) per share. It indicates the amount of monetary units paid on the stock market for one monetary unit of tangible book value (TBV).

The price to TBV ratio compares the tangible book value to the security price. PTBV does not takes intangible assets into consideration, such as intellectual property, patents and goodwill. As a measure of value, it is helpful to investors when considering only the market value of tangible assets, as it reflects the amount of money that an investor would receive for each share of stock if an entity could cease its operations and liquidate all its assets at the value recorded in its books.

This ratio is referred to as P/TB value.