Its calculated by dividing the companys stock price per share by its book value per. The priceto book ratio p b ratio is a ratio used to compare a stocks market value to its book value. In depth view into samsung electronics co book value per share explanation, calculation, historical data and more. The priceto book ratio, or pb ratio, is a financial ratio used to compare a companys current market price to its book value. These values can be found in the companys balance sheet and accounting tools such as journals and ledgers. Facebook price to book ratio 20092019 fb macrotrends. This may underestimate the true economic values of.
Market to book ratio book value per share is an accounting. Goldman sachs price to book ratio 20062020 gs macrotrends. Using the pricetobook ratio to analyze stocks the motley fool. The assets may be carried on the balance sheets at the original cost minus depreciation. Be sure to use the average number of shares, since the periodend amount may incorporate a recent stock buyback or issuance, which will skew the results. The price to tangible book ratio is an excellent tool for determining if the share price is trading above or below the tangible book value per share. The price to book value ratio, or pbv ratio, compares the market and book value of the company. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. At inside value, we generally look for companies that have been increasing book value per share over a number of years because. Price to book value is a valuation ratio that is measured by stock price book value per share. Pbv ratio market price per share book value per share calculating the price book value ratio, an example. Find out all the key statistics for citigroup, inc. During the past 5 years, the average book value per share growth rate was 0. Book value per share is calculated by subtracting liabilities and the par value of any outstanding preferred stock from assets and dividing the remainder by the number of outstanding shares of stock.
The current price to book ratio for tesla as of february 14, 2020 is 19. C, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Find out all the key statistics for international business machines ibm, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value per share financial ratio the balance small business. The pb ratio compares a companys market capitalization, or market value, to its book value. Book value indicates the difference between the total assets and the total liabilities and when the formula for book value per share is to divide this book value by the number of common shares. Historical price to book ratio values for microsoft msft over the last 10 years. The price to book pb ratio is used to compare a companys market price to book value and is calculated by dividing price per share by book value per share. Nke book value per share explanation usually a companys book value and tangible book per share may not reflect its true value. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding.
Book value of equity per share effectively indicates a. In other words, the value of all shares divided by the number of shares issued. It is calculated by dividing the current closing price of. The current price to book ratio for apple as of april 21, 2020 is. Market to book ratio price to book formula, examples. We better know it as pb ratio price to book value ratio. International business machines ibm valuation measures. The second way, using pershare values, is to divide the companys current share price by the book value per share i. It sells of all its assets, and pays off all its debts. The current price to book ratio for microsoft as of april 22, 2020 is 11. Historical price to book ratio values for goldman sachs gs over the last 10 years. Marketto book ratio book value per share is an accounting number, reflecting historical costs. How to tell if a stock is undervalued or overvalued. The ratio of price and book value per share gives us one of the most utilised financial ratio related to stock investing.
The priceto book ratio is a useful metric for finding value. Specifically, it compares the companys stock price to its book value per share bvps. Book value per share bvps is the minimum cash value of a company and. Ford motor book value per share 20062019 f macrotrends. It operates primarily in the united states, china, norway and internationally. In this equation, book value per share is calculated as follows. Market to book ratio formula, examples calculations. Find the latest book value per share for intel corporation intc intel corporation intc book value per share zacks. Find the latest book value per share for the home depot, inc. Historical price to book ratio values for apple aapl over the last 10 years.
The first part is to find out the equity available to the common stockholders. Book value per common share or, simply book value per share bvps is a method to calculate the pershare book value of a company based on common shareholders equity in the company. Book value per share may not approximate market value per share because. The pricetobook, or pb ratio, is calculated by dividing a companys stock price by its book value per share, which is defined as its total assets. Home financial ratios valuation ratios book value per share. This video explains how to calculate the book value per share given shares outstanding and how to calculate the price to book ratio given the. Marathon gold price to book vs cash per share mgdpf. During the past 3 years, the average book value per share growth rate was 0. The calculation can be performed in two ways, but the result should be the same each way. During the past 12 months, s average book value per share growth rate was 40.
During the past 3 years, the average book value per share growth rate was 45. The above book value per share formula has two parts. Historical price to book ratio values for tesla tsla over the last 10 years. The book value of assets and shares are the value of these items in a companys financial records. The market capitalization companys value is its share price multiplied by the number of outstanding shares. Book value per share is a fairly conservative way to measure a stocks value. Book value per share is a reliable barometer of a stocks potential value. The book value per share is a firms assets minus its liabilities, divided by the total number of shares.
Airasia book value per share analysis book value per share bs is can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. Historical price to book ratio values for facebook fb over the last 10 years. It indicates the level of safety associated with each common share after removing the effects of liabilities. Therefore, the marketto book ratio compares the market value of the firms investments to their cost. The price to book ratio formula, sometimes referred to as the market to book ratio, is used to compare a companys net assets available to common shareholders relative to the sale price of its stock. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. Find the latest book value per share for ford motor company f ford motor company f book value per share zacks.
Bvps book value per share valeur comptable par action ratio. Book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. The second way, using pershare values, is to divide the companys current share price by the book value per share. Current and historical book value per share for ford motor f from 2006 to 2019. Tesla price to book ratio 20092019 tsla macrotrends. Pricetobook ratio pb ratio definition investopedia. In the other word, you can this information to determine if the share is underpriced or overpriced. Walmarts book value per share for the quarter that ended in jan. Pricetobook value pb is the ratio of the market value of a companys shares share price over its book value of equity. The current price to book ratio for facebook as of april 22, 2020 is 4.
The book value of equity, in turn, is the value of a companys assets. T book value per share explanation usually a companys book value and tangible book per share may not reflect its true value. In essence, the book value per share seeks to find out how much are people. Apple price to book ratio 20062019 aapl macrotrends. A high pb ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. The market to book ratio is a metric that compares the price of a stock to its book value.
Companies use the pricetobook ratio pb ratio to compare a firms market capitalization to its book value. Price to book value ratio pbv or pb ratio equitymaster. The market to book ratio is calculated by dividing the current closing price of the stock by the most current quarters book value per share. The priceto book ratio measures a companys market price in relation to. In the first way, the companys market capitalization can be divided by the companys total book value from its balance sheet. Book value per share financial definition of book value. In other words, the value of all shares divided by. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity, owners equity, shareholders equity, or simply equity. It tells you the price the market is putting on the companys assets. Book value per share formula how to calculate bvps. Samsung electronics co book value per share gurufocus. What is book value per share and how can it help you in. The priceto book, or pb ratio, is calculated by dividing a companys stock price by its book value per share, which is defined as its total assets minus any liabilities. The formula for price to book value is the stock price per share divided by the book value per share.
The formula for book value per share is to subtract preferred stock from stockholders equity, and divide by the average number of shares outstanding. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. The ratio of price to book to cash per share for marathon gold corporation is roughly 85. Book value per share is a widely used stock evaluation measure. Whatever is left over is the book value of the company. The book value of a company, stripped to basics, is the value of the company the stockholders will own if the firms. Book value per common share is a measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. How to use the financial statement to calculate price to tangible book ratio. Book value per share bvps takes the ratio of a firms common equity divided by its number of shares outstanding. Book value per share formula, calculator and example. Find the latest book value per share for mcdonalds corporation mcd.
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