Price Per Book (TTM) Formula in Excel

Understanding Price Per Book (TTM)

The Price Per Book (TTM) formula returns the ratio of a stock’s current price to its book value per share over the trailing twelve months (TTM). This ratio is commonly used by investors to:

• Identify potential undervalued or overvalued stocks.
• Compare companies within the same industry.
• Gain deeper insight into the company’s financial stability.

? Pro Tip: A lower price-to-book ratio may indicate undervaluation, while a higher ratio could mean the stock is overvalued or that the company has high growth potential.

Syntax and Parameters

=PricePerBook(Symbol)

• Return Value: Returns a numeric value representing the price-to-book ratio.
• Error Handling: If the symbol is invalid or the MarketXLS license is not recognized, it returns "NA".
• Performance Consideration: This function relies on web data. Ensure you have a stable internet connection to avoid timeouts.

Examples and Usage

1. Basic Usage with a Stock Symbol

   =PricePerBook("MSFT")

   This returns the price-to-book ratio for Microsoft (MSFT).

2. Referencing a Cell
   Suppose cell A1 contains the symbol "AAPL":

   =PricePerBook(A1)

3. Using Indices, Options, or Crypto

   • Indices:

     =PricePerBook("^SPX")

   • Options:

     =PricePerBook("@MSFT 110122C00020000")

   • Crypto:

     =PricePerBook("BTCUSD:DEFAULT")

?? Note: Always verify that the symbol format is supported by your MarketXLS data package.

Common Questions

Why do I get “NA”?

• Ensure the ticker symbol is correct.
• Confirm your MarketXLS license is active and valid.
• Check your internet connectivity.

Can I use this ratio for day trading?

• While this ratio helps gauge long-term valuation and stability, day traders typically focus on short-term price movements and technical indicators.

Is the trailing twelve months (TTM) data always current?

• MarketXLS continuously updates financial data. However, TTM data may be subject to reporting lags based on company filings.

Best practices for meaningful insights

• Compare the Price Per Book (TTM) ratio among companies in the same sector.
• Look at additional metrics (e.g. EPS, Market Capitalization) for a more comprehensive analysis.

? Pro Tip: Combine Price Per Book (TTM) with other key ratios like EPS (TTM) and Dividend Yield to get a well-rounded view of a company’s financial health.