Glossary· Portfolio
What is P/B ratio?
Also known as Price to book
The weighted-average price-to-book of the fund's equity holdings.
Price against the accounting net worth of the underlying companies. More informative for banks and financials than for asset-light businesses, where book value captures little of what the company is.
For the formula and the constants behind this figure, see Methodology.
Guides that use P/B ratio
2 guides put this term to work.
- Value vs growth: which style actually wins over the long run?Two different bets with two different failure modes — the value trap and multiple compression — and leadership cycles long enough to exhaust anyone's patience.
- Banking and financial services funds: doubling a bet you already holdFinancials are already the largest sector in every diversified portfolio. Lending books their revenue years before they discover its cost — which is what makes the cycle so dangerous.
More on portfolio
What the fund actually holds, aggregated from its published holdings.
- AUM
- The total money the scheme currently manages.
- P/E ratio
- The weighted-average P/E of the fund's equity holdings.
- Average market cap
- The weighted-average size of the companies the fund holds.
- Large / mid / small cap split
- How the equity portfolio divides across the three SEBI size bands.
- ASM
- An NSE flag on a stock showing unusual price or volume activity.