CompanyGraph
Screen for structurally interesting companies
Sign in
Inverted P/B With Liquidity And Equity Ratio

Inverted P/B With Liquidity And Equity Ratio

Stock Screener Filter

Use to find companies where this pattern is active.

ValueBalanceSheetStrength

Inverted P/B is high (current P/B is below the configured scale); current assets are large relative to current liabilities; shareholders' equity is a large share of total assets.

State

Inverted P/B high alongside high current ratio and high equity-to-assets

Emergence

Three readings line up: inverted P/B scores high (current P/B is well below the configured scale), current assets are large relative to current liabilities, and shareholders' equity is a large share of total assets. The first reading describes price relative to book value; the second and third describe near-term liquidity composition and the equity vs total-liabilities composition of the asset base.

Limits

Book value in the first reading is the accounting figure — it includes intangibles, goodwill, and other non-cash items, and is not the same as tangible value or liquidation value. The two balance-sheet readings are most-recent-annual snapshots; the current-ratio reading describes a single date and does not measure cash-flow timing. None of the three measures intrinsic value, predicts whether a discount will close, identifies catalysts, or assesses business viability. Stocks at low P/B with these balance-sheet readings can remain there indefinitely.

Screen for Inverted P/B With Liquidity And Equity Ratio

Find stocks where this pattern is currently active in the screener.

Inverted P/B With Liquidity And Equity Ratio
→
price below book value
ratio balance current
ratio balance equity
Open in Screener

Explanation

Three readings co-occur: - Below Book Value (price-below-book-value): inverted price-to-book ratio. A high score means current P/B is well below the scale parameter (default 2.0). Book value is the accounting figure — it includes intangibles, goodwill, and other non-cash items. - Current Ratio (ratio-balance-current): Total current assets divided by total current liabilities. High reading means current assets exceed current liabilities by a wide margin on a single balance-sheet date. - Equity Ratio (ratio-balance-equity): Total shareholders' equity as a fraction of total assets. High reading means a large share of the asset base is funded by equity (i.e., total liabilities are a small share of assets). The three readings describe a present configuration: price relative to book, near-term liquidity composition, and equity-vs-liabilities composition. They do not measure intrinsic value or predict a re-rating.

Interpretation

Co-occurrence of an inverted-P/B reading with high current-ratio and high equity-to-assets readings. The formulas describe price-vs-book and balance-sheet composition; they do not measure intrinsic or liquidation value or predict whether the discount will close.

Required Observations

Price Below Book Value

Price-to-book ratio below the scale parameter

Ratio Balance Current

Specific balance-sheet ratio benchmarked against industry (which ratio depends on the instance)

Ratio Balance Equity

Specific balance-sheet ratio benchmarked against industry (which ratio depends on the instance)

Related Interpretations

Low-Leverage Liquidity Configuration

Three balance-sheet observations co-occur: elevated current ratio, elevated equity ratio, and cash on hand at least covering total debt at the most recent quarter

Elevated Receivables Alongside Balance-Sheet Strength

Current ratio looks favorable but receivables form a large share of current assets and have been growing

Low P/B with Intangible and Goodwill Concentration

Price-to-book is low while intangibles and goodwill are a large share of the asset base

CompanyGraph
  • Blog
  • Industries
  • Glossary
  • Interpretations
  • Coordinations
  • Constraint Archetypes
  • About
  • Legal

CompanyGraph is built by Smallbox Labs.

© 2026 CompanyGraph. All rights reserved.

Contact