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Top 5 Price-to-Book Stocks Ideal for Value-Focused Investors
Value investing often focuses on finding stocks that appear undervalued by the market but are backed by solid fundamentals and long-term growth potential. Investors use different strategies and valuation metrics to identify such opportunities, depending on their investment style and risk appetite.
One of the most widely used valuation tools is the price-to-book (P/B) ratio. The metric helps investors identify stocks trading at relatively low valuations compared with the company’s underlying net assets.
The P/B ratio measures how much investors are willing to pay for every dollar of a company’s book value, which represents total assets minus liabilities. A lower P/B ratio may indicate that a stock is undervalued, although it should always be evaluated alongside the company’s financial strength, industry trends and growth outlook.
The ratio is calculated by dividing a company’s current stock price by its book value per share (BVPS), where:
P/B Ratio = Current Share Price ÷ Book Value Per Share
This metric can help identify attractively priced stocks with upside potential. Some such stocks are Hudson Pacific Properties, Strategic Education, Hilton Grand Vacations, Nexa Resources and Avnet.
Let us understand the concept of book value.
What is Book Value?
There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Book Value Per Share = (Total Assets – Total Liabilities) ÷ Number of Outstanding Shares
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
5 Low Price-to-Book Stocks
Here are five of the 17 stocks that qualified for the screening:
LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
HPP has a projected 3-5-year EPS growth rate of 11.8%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Orlando, FL-based Hilton Grand Vacations Company is a division of Hilton Worldwide. It is engaged in the hospitality business. It markets and operates vacation ownership resorts and also manages and serves club membership programs.
HGV has a Zacks Rank #2 and a Value Score of A. HGV has a projected 3-5-year EPS growth rate of 22.0%.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #1. NEXA has a projected 3-5-year EPS growth rate of 27.5%.
Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet has a Zacks Rank #2 and a Value Score of A. AVT has a projected 3-5-year EPS growth rate of 43.3%.
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Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Hudson Pacific Properties, Strategic Education, Hilton Grand Vacations, Nexa Resources and Avnet
For Immediate Release
Chicago, IL – May 28, 2026 – Stocks in this week’s article are Hudson Pacific Properties (HPP - Free Report) , Strategic Education (STRA - Free Report) , Hilton Grand Vacations (HGV - Free Report) , Nexa Resources (NEXA - Free Report) and Avnet (AVT - Free Report) .
Top 5 Price-to-Book Stocks Ideal for Value-Focused Investors
Value investing often focuses on finding stocks that appear undervalued by the market but are backed by solid fundamentals and long-term growth potential. Investors use different strategies and valuation metrics to identify such opportunities, depending on their investment style and risk appetite.
One of the most widely used valuation tools is the price-to-book (P/B) ratio. The metric helps investors identify stocks trading at relatively low valuations compared with the company’s underlying net assets.
The P/B ratio measures how much investors are willing to pay for every dollar of a company’s book value, which represents total assets minus liabilities. A lower P/B ratio may indicate that a stock is undervalued, although it should always be evaluated alongside the company’s financial strength, industry trends and growth outlook.
The ratio is calculated by dividing a company’s current stock price by its book value per share (BVPS), where:
P/B Ratio = Current Share Price ÷ Book Value Per Share
This metric can help identify attractively priced stocks with upside potential. Some such stocks are Hudson Pacific Properties, Strategic Education, Hilton Grand Vacations, Nexa Resources and Avnet.
Let us understand the concept of book value.
What is Book Value?
There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.
It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.
Book Value Per Share = (Total Assets – Total Liabilities) ÷ Number of Outstanding Shares
Understanding P/B Ratio
By comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.
A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.
For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.
But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.
Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.
In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.
5 Low Price-to-Book Stocks
Here are five of the 17 stocks that qualified for the screening:
LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California. Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
HPP has a projected 3-5-year EPS growth rate of 11.8%.
Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.
STRA currently has a Zacks Rank #2 and a Value Score of A.
Orlando, FL-based Hilton Grand Vacations Company is a division of Hilton Worldwide. It is engaged in the hospitality business. It markets and operates vacation ownership resorts and also manages and serves club membership programs.
HGV has a Zacks Rank #2 and a Value Score of A. HGV has a projected 3-5-year EPS growth rate of 22.0%.
Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #1. NEXA has a projected 3-5-year EPS growth rate of 27.5%.
Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.
Avnet has a Zacks Rank #2 and a Value Score of A. AVT has a projected 3-5-year EPS growth rate of 43.3%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2927297/top-5-price-to-book-stocks-ideal-for-value-focused-investors
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.