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I know what PB ratio is and I am looking forward to calculate the sector PB ratio.

Here's the sector PB ratio of State Bank of India is 2.23. Link Screenshot (70)

The names of companies and its corresponding details are given below.
Extracted from ticker tape too : link

Names Market Cap(in Cr) PB Ratio Sector PB Book Value(in Cr) Current Market Price of each share
State Bank of India ₹451,139.11 1.58 2.23 ₹285,187.48 ₹505.50
Bank of Baroda Ltd ₹59,729.23 0.72 2.23 ₹82,825.78 ₹115.50
IDBI Bank Ltd ₹48,654.62 1.29 2.23 ₹37,741.02 ₹45.25
Canara Bank Ltd ₹42,731.84 0.68 2.23 ₹63,202.97 ₹235.55
Punjab National Bank ₹39,199.22 0.42 2.23 ₹93,021.13 ₹35.60
Indian Overseas Bank ₹34,874.95 2.06 2.23 ₹16,944.81 ₹18.45
Union Bank of India Ltd ₹27,509.86 0.42 2.23 ₹64,737.77 ₹40.25
Indian Bank ₹20,182.37 0.51 2.23 ₹39,480.67 ₹162.05
Bank of India Ltd ₹20,169.03 0.40 2.23 ₹50,139.54 ₹49.15
Central Bank of India Ltd ₹16,450.38 0.62 2.23 ₹26,547.38 ₹18.95
UCO Bank ₹14,287.37 0.63 2.23 ₹22,606.41 ₹11.95
Bank of Maharashtra Ltd ₹12,148.55 0.99 2.23 ₹12,308.29 ₹18.05
Punjab & Sind Bank ₹6,565.33 0.79 2.23 ₹8,363.02 ₹16.20

I tried harmonic mean, arithemetic mean etc on ratio with its market captilisation weight etc.. but couldn't able to get the sector PB value as 2.23.
Also, on the website, a little definition is mention for sector PB
sector PB : Market cap weighted-average PB ratio of the sector the stock belongs to

Could anyone help me to understand how this sector PB is evaluated?

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  • $\begingroup$ In the link for the tickertape you have filtered for Public banks which is a sub-sector of Financials. TickerTape.in calculate the Sector PB based on all of the constituents under a sector, in your case, "Financials". You can do an ad-hoc verification of this, by taking any company within "Financials" and observe that they have the same sector PB, 2.23. $\endgroup$
    – Pleb
    Commented Apr 27, 2022 at 11:21
  • $\begingroup$ @Pleb Thanks Pleb for clearing things. I cross checked with its sector and they all have same sector PB ratio. Now I took each companies of that sector , but couln't get any luck to reach the mentioned sector PB ratio value by my own calculation. It would be helpful if you can give any process to obtain the desired result. I am looking from learning point how this value is obtained. $\endgroup$
    – Girish Kumar Chandora
    Commented Apr 27, 2022 at 12:23
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    $\begingroup$ If you have the data in an Excel spreadsheet, .txt file or similar, I can try to recover the number. You can put a link to where I can download the data, if you figure it out. :-) $\endgroup$
    – Pleb
    Commented Apr 27, 2022 at 12:41
  • $\begingroup$ It looks like you are missing data and/or the cap weighted PB is a snap shot from a different period. None of your PB Ratios are over the sector PB of 2.23 so I don't know how you can get a mkt cap weighted weighted PB of 2.23 from just the data in your table. $\endgroup$
    – AlRacoon
    Commented Apr 27, 2022 at 12:59
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    $\begingroup$ @Pleb Thanks Pleb. For your help and support. Bt our logic i.e. Harmonic Weightage is also fine and it works in most of the cases $\endgroup$
    – Girish Kumar Chandora
    Commented Apr 30, 2022 at 8:02

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The sector PB ratio is in Tickertape is calculated using Sum of all the securities in the sector divided by the sum total of the book value of those securities. You can refer the support docs

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