US Price-to-Book Ratio
Current US P/B
As of August 2026 · ratio
Source: multpl — S&P 500 price-to-book
By Dominic Roe · Data Engineer & Business Intelligence Developer Updated August 2026
- Historical average
- 3.15
- 313 months
- Historical median
- 2.91
- Percentile rank
- 100th percentile
- vs full history
- All-time range
- 1.78 – 6.16
- Last updated
- August 2026
- since December 1999
Understanding this metric
What is it?
The price-to-book (P/B) ratio of the US stock market (S&P 500) divides the index price by its book value per share — the net accounting value of company assets minus liabilities, i.e. shareholders' equity. It shows how many dollars investors pay for each dollar of net assets recorded on the balance sheet.
How is it calculated?
It is the price of the S&P 500 divided by its aggregate book value per share. A P/B of 4 means investors pay $4 for every $1 of net accounting assets. The series shown here is multpl.com's quarterly S&P 500 price-to-book, resampled to a monthly cadence (each quarter carried forward) so it lines up with the other metrics; the data begins in 1999.
Historical interpretation
A higher P/B means a more expensive market relative to net assets; a lower one, cheaper. But P/B has drifted structurally higher over time because accounting book value omits most intangible assets — software, brands, research, data — that dominate today's asset-light, technology-heavy index. So an elevated reading partly reflects what the balance sheet fails to capture rather than pure overvaluation. Read today's value against the metric's own (post-1999) history rather than a fixed threshold.
Limitations
Book value is an accounting figure that increasingly understates intangible-rich businesses, so the 'normal' range has risen and cross-era comparisons are unreliable. Share buybacks reduce book equity — and can push it negative — distorting the ratio for some companies. The series also starts only in 1999, a far shorter history than CAPE's, so percentile context is limited. Use it alongside other measures, not on its own.
Frequently asked questions
What is a normal price-to-book for the S&P 500?
There is no fixed level, and it has drifted higher over the decades. The market traded around 2–3 times book for much of the last century but has been markedly higher recently, partly because intangible assets are missing from book value. Compare today's reading to the metric's own history rather than to a single number.
Why has the price-to-book ratio risen over time?
Modern accounting leaves most intangible value — software, brands, R&D, data — off the balance sheet, and the index has shifted toward asset-light technology firms whose worth is largely intangible. Share buybacks also shrink reported book equity. Together these lift P/B for reasons unrelated to pure overvaluation.
How is it calculated on this page?
It is multpl.com's S&P 500 price-to-book series, published quarterly and resampled here to a monthly cadence (each quarter's value carried forward) so it aligns with the site's other metrics. The history begins in 1999.
Is the data real?
The site clearly labels every series as either real imported data or generated sample (mock) data. Sample data is for demonstration only and must not be used for investment decisions.
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