What ratio is market price per share divided by book value per share?

The ratio of market price per share divided by book value per share is the price-to-book ratio.

Also called the P/B ratio, market-to-book ratio, or price-to-equity ratio, it compares what investors currently pay for a share with the accounting value attributable to that share. Book value generally represents a company’s assets minus its liabilities; on a per-share basis, it is divided by the number of outstanding shares.

A P/B ratio above 1 means the market values the equity above its recorded book value, while a ratio below 1 means the market price is below that accounting measure. The result is highly dependent on industry. It is especially common in analyzing banks, insurers, property companies, and other asset-intensive businesses.

The ratio is not a substitute for a full valuation. Internally generated brands, intellectual property, goodwill, and other intangible assets may be missing or understated on the balance sheet, making book value less informative for many modern companies. It is also distinct from the price-to-earnings ratio, which compares share price with earnings per share, and from price-to-sales and price-to-cash-flow measures.