Price/Book of IAC/InterActiveCorp
The price to book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value. It is also sometimes known as a market to book ratio or price to equity ratio. The calculation of a price to book ratio can be performed in two ways. It can be calculated as the company's market capitalization divided by the company's total book value from its balance sheet. It can also be calculated using per-share values and dividing a company's current share price by the book value per share (i.e. its book value divided by the number of outstanding shares).
The P/B ratio varies between industries. The industries that require more infrastructure capital (for each dollar of profit) will usually trade at P/B ratios much lower than, for example, consulting firms. P/B ratios are commonly used to compare banks, because most assets and liabilities of banks are constantly valued at market values. A higher P/B ratio implies that investors expect management to create more value from a given set of assets, all else equal (and/or that the market value of the firm's assets is significantly higher than their accounting value).
P/B ratios do not, however, directly provide any information on the ability of the firm to generate profits or cash for shareholders. This ratio also gives some idea of whether an investor is paying too much for what would be left if the company went bankrupt immediately. For companies in distress, the book value is usually calculated without the intangible assets that would have no resale value. In such cases, P/B should also be calculated on a "diluted" basis, because stock options may well vest on sale of the company or change of control or firing of management.
Price/Book of companies in the Consumer Services sector on NASDAQ compared to IAC/InterActiveCorp
IAC/InterActiveCorp, together with its subsidiaries, operates as a media and Internet company in the United States and internationally. It operates through six segments: Match Group, HomeAdvisor, Video, Applications, Publishing, and Other. The Match Group segment provides dating products, which enables a user to establish a profile and review other people's profiles in 42 languages; and non-dating services, including educational test preparation, academic tutoring, and college counseling services. The HomeAdvisor segment offers consumer services, such as matching and on-demand services in categories ranging from simple home repairs to larger home remodeling projects; online True CostGuide that provides project cost information; an online library, which comprise articles about home improvement, repair, and maintenance; and tools that assist consumers with the research, planning, and management of their projects. The Video segment operates a video sharing platform and tools to share, manage, distribute, and monetize content online; Websites and properties; and YouTube channels. This segment also provides production and producer services for unscripted and scripted television, feature film, and digital content; and fitness and workout videos through various platforms. The Applications segment develops, markets, and distributes various desktop applications that offer users the ability to access search services and engage in various other activities online; and customized browser-based search applications. The Publishing segment publishes digital content and/or offers search services. This segment provides About.com, Dictionary.com, Investopedia, The Daily Beast, Ask.com, CityGrid, and ASKfm. The Other segment operates ShoeBuy, an Internet retailer of footwear and related apparel and accessories. The company was formerly known as InterActiveCorp. IAC/InterActiveCorp was founded in 1986 and is headquartered in New York City, New York.
- IAC/InterActiveCorp, 555 West 18th Street, New York City 10011, United States