Price-to-Book Multiple is a multiple derived from the Price-to-Book ratio calculated for a business entity. The price-to-book ratio, which is computed by dividing the market price per share of a business entity by the book value per share, is a measure through which valuers and analysts compare the price-to-book ratio measures of a business' market value to its book value, which is the net assets recorded in the statement of financial position. Through multiples generated through these computations, investors can assess if an investment is viable. When the price-to-book multiple is above 1, it signals the business entity has a positive outlook and investors are willing to pay a premium. On the other hand, when the ratio is less than 1, it indicates the company is undervalued and the shares are selling at less than the business is worth.