Hi guys, I refer to the video titled "Price-to-Book Ratio" under Bank Valuations. I wanted to find out how you are able to calculate the pb ratio of the last 10 years and plot it out? I assume you download the historical daily share price, but for example, for year 2016, do you use each daily share price divided by (2015 equity value / 2015 shares)?
Additionally, how is the average pb then calculated?
Thank you!

1 Answers

Hi Mallvin,
Yes, you are right. Just make sure that the price is based on Closed Price from Yahoo!Finance.
Once you have the daily data of PB, you can simply highlight the value in the excel. You can see the Average value at bottom of the excel spreadsheet. Alternatively, you can use the formula =Average(cells)

Hi Rusmin, thank you very much!

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