The price-to-book ratio helps you identify firms that are rich in assets, such as many banks, brokerage firms book ratio can also tell you the premium that you are paying for the net assets of the company. Most stocks have a price-to-book ratio ranging from assets are valued, as reflected in the stock's current market price. The higher a company's price-to-boo If a company's price-to-book ratio is less than 1.0, then the company's assets may be utilized ineffectively underperforming and undervalued company may become the target of an acquisition by another company