What is portfolio P/B Ratio?
Price-to-book compares a stock’s market price to its accounting book value per share. Rolled up across a fund’s whole portfolio, it’s a second, independent read on valuation alongside P/E - useful because P/E can be distorted by a temporarily low or negative earnings quarter, while book value moves more slowly.
Portfolio P/B = Σ(wi × P/Bi)
Real comparison across 6 funds
CHART
Portfolio P/B Ratio - 6 real funds
Holdings-weighted P/B as of the fund's latest disclosed portfolio.
Funds compared: Canara Robeco Flexi Cap Fund - Direct Plan - Growth · Canara Robeco Large and Mid Cap Fund - Direct Plan - Growth · Bandhan Large Cap Fund - Direct Plan - Growth · Franklin India Small Cap Fund - Direct - Growth · Franklin India Large Cap Fund - Direct - Growth · Canara Robeco Infrastructure Fund - Direct Plan - Growth
Reading the spread
Across these 6 funds, portfolio P/B runs from 3.08 (Canara Robeco Large and Mid Cap Fund - Direct Plan - Growth) to 16.53 (Franklin India Large Cap Fund - Direct - Growth), a gap of 13.45. The middle value is 5.96, with 3 of 6 above it. The highest reading is 5.4 times the lowest, so the choice of fund changes this number a lot. Neither end is better or worse in itself; the number describes how a fund behaves, and what matters is whether that matches what you want.
How to use it in practice
P/B compares the price investors pay with the book value of a company’s assets. For a fund it is the weighted average across its holdings. It is most useful for asset-heavy sectors, such as banks and industrials, where book value is a meaningful anchor. A lower P/B can signal a value-oriented portfolio.
Common mistakes
P/B is much less useful for businesses whose value lies in things that do not appear on the balance sheet, such as software and brands. A low P/B can also reflect weak returns on those assets rather than a bargain. Use it alongside P/E rather than alone.
Frequently asked questions
What is a good P/B ratio?
A lower P/B can suggest a cheaper portfolio relative to its asset base, but it depends on the sector. Banks usually trade at much lower P/B than software firms.
When is P/B misleading?
When value comes from intangible assets that are not in book value, as in many technology and consumer businesses.
How does P/B differ from P/E?
P/B compares price with assets, P/E compares price with profits. Looking at both gives a fuller picture of valuation.
WHAT THIS MEANS FOR YOU P/B and P/E don’t always agree - a fund can screen cheap on P/E (strong recent earnings) but expensive on P/B, or vice versa. Read them together, not as substitutes for each other.
METHODOLOGY Weighted by each holding’s share of the portfolio, from the fund’s latest disclosed holdings. Data: July-2026 portfolio disclosure via Punji. Not investment advice.