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What is the P/B ratio? The P/B ratio is a method for determining the worth of a stock. Its a mathematical ratio that compares the book value of a firm to its market capitalization, or the book value per share to the stock price per share.

Related: What Is PPV in Accounting? (How to Record It in Your Books) How does budget variance analysis help with forecasting? Forecasting refers to the process of using data to predict financial performance. You can use budget to actual variance analysis to create more accurate predictions.

In this article, we answer What is PPV?, outline what causes variances in the purchase price of products and services, discuss why organisations use PPV, explain how to calculate it and review some examples.

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