Price To Tangible Book Ratio Formula in Excel

The Price To Tangible Book Ratio formula in Excel with MarketXLS enables you to quickly compare a stock’s current share price to its tangible book value. This metric is particularly useful for value investors seeking to identify potentially undervalued companies by analyzing the ratio of a company’s stock price to its tangible (physical) assets.

Understanding Price To Tangible Book Ratio

The Price To Tangible Book Ratio is a key measurement for evaluating a company’s valuation and stability:

• It helps determine if a stock is trading at a premium or discount relative to its tangible assets.
• Useful in comparing companies within asset-heavy industries like finance, manufacturing, and utilities.
• Valuable for investors focusing on asset-based valuation strategies.

? Pro Tip: Combine the Price To Tangible Book Ratio with other valuation ratios like P/E ratio or P/S ratio for a more holistic view of a company’s financial health.

Syntax and Parameters

Use the following syntax in your Excel worksheet with the MarketXLS add-in:

=PriceToTangibleBook(Symbol)

Return Value

• The function returns a numeric value representing the company’s price to tangible book ratio.
• If the symbol is invalid or the data cannot be retrieved, the function returns "NA".

?? Note: The function relies on external data. Ensure your MarketXLS license is valid and you have internet connectivity to avoid errors.

Examples and Usage

Below are practical examples demonstrating how to use the PriceToTangibleBook function:

1. Basic Stock Example:

   =PriceToTangibleBook("MSFT")

   Retrieves the Price To Tangible Book Ratio for Microsoft.

2. Index Symbol Example:

   =PriceToTangibleBook("^SPX")

   Checks the ratio for the S&P 500 index.

3. Options Symbol Example:

   =PriceToTangibleBook("@MSFT 110122C00020000")

   Evaluates an option-based symbol for Microsoft.

4. Cryptocurrency Example:

   =PriceToTangibleBook("BTCUSD:DEFAULT")

   Retrieves the ratio metric (if available) for Bitcoin.

? Pro Tip: Use cell references (e.g., A1 containing "MSFT") to dynamically update your spreadsheet calculations when evaluating multiple symbols.

Common Questions

1. Why am I getting “NA”?

   • You may have an invalid symbol or an inactive MarketXLS license. Double-check the ticker symbol and ensure your license is up to date.

2. How often is the data updated?

   • MarketXLS typically updates key ratios daily. Verify your add-in settings and internet connection for the most recent data.

3. Does this function work for all markets?

   • It covers most US equities, many international symbols, major indices, options, and popular cryptocurrencies. Always confirm the symbol format is correct.

4. How is the tangible book value calculated?

   • Tangible book value excludes intangible assets, providing a company’s net physical asset value. This ratio compares the latest market price against that net value.

?? Note: Always combine multiple ratios and perform thorough research before making investment decisions. The Price To Tangible Book Ratio alone does not provide the complete financial picture of a company.