To calculate a price-weighted average, or any arithmetic average for that matter, add the numbers (stock prices) together and divide by the number of stocks in the average.

What Is Price-to-Book Ratio? Price-to-book ratio is a metric that values a company based on its market price relative to its net assets, typically calculated on a per-share basis.

The net price calculator does this by providing a more individualized price estimate based on you or your family’s financial circumstances.

By knowing how to calculate and account for them properly, you'll learn to recognize them when you see them in a company's financial statements. The Motley Fool has a disclosure policy.