Book value per share definition the book value per share is the value each share would be worth if the company were to be liquidated, all the bills paid, and the assets distributed. This compares a stocks book value to its market value. Theoretically, the company can sell all its assets and pay off all its debt and liabilities. In depth view into tot book value per share explanation, calculation, historical data and. Dec 29, 2015 the simplest explanation i can give is that it tells potential investors how much their shares would be worth in the event the company in question goes out of business. In grahams intelligent investor, he calculates a metric earningbook value.
The book value per share bvps is calculated by taking the ratio of equity. One way to look at book value per share is to consider what will happen if the company ceases all operations today. Above is the historical price vs book value chart of. The book value of equity per share is a financial measure which indicates a per share estimation of the minimum value of an entitys equity. Book value per share bvps total stockholders equity preferred equity number of shares of common stock outstanding step 1. Table 4 present the combined value relevance of earnings per share and book value by dividing total sample into profit and loss firms groups. The results presented in the table 4 argues that the book value is the dominant variable in the valuation of stock price for both group of profit and loss firms, while earning per share is insignificant valuation of stock price for the group of loss. You can hover upon the charts to know the values for any year. Jan 30, 2018 book value per share bvps is a measure of value of a companys common share based on book value of the shareholders equity of the company. Thus, this measure is a possible indicator of the value of a companys stock. Book value per common share bvps derives a companys book value. Book value per share financial definition of book value. It is calculated by the company as shareholders equity book value divided by the number of shares outstanding.
The equity is bumped up by the exercise price of the options, warrants or preferred shares. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the book value of its assets and pays liabilities at their book value. Apr 15, 2020 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. The calculation of book value is important in determining the value of a company that is being liquidated. In the case of an exchangetraded fund, closedend fund, or stock, this is the expression of. Find the latest book value per share for the walt disney company dis. During the past years, the highest 3year average book value per share growth rate of berkshire hathaway was 39. 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. He is asked to calculate the book value per share of a stock and check if the stock trades at a fair value. This is a percentage of the current price of a share.
I would like to calculate the same ratio in modern times 19602015 but am having trouble finding this data. Keep in mind that the book value per share will not be the same as the market value per share. Current and historical book value per share for visa v from 2007 to 2019. How do i interpret pricebook and book value per share on. Book value per common share bvps definition investopedia. If the market value per share is lower than the book value per share, then the stock price may be undervalued. Is there an app which shows historic sharestock prices, pe. This indicator is about the same for the average which is currently at 0. Strictly speaking, the higher the book value, the more the share is worth. Book value per share compares the amount of stockholders equity to the number of shares outstanding. In other words, the value of all shares divided by the number of shares issued. Book value per share bvps takes the ratio of a firms common equity. Book value per share bvps overview, formula, example. Boeing 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.
Is there an app which shows historic sharestock prices, p. Berkshire hathaways book value per share for the quarter that ended in dec. Book value per share financial definition of book value per share. What is book value per share and how can it help you in. In depth view into book value per share explanation, calculation, historical data and more. Book value per share basically tells us the worth of each share. The calculation makes it possible to identify the specific monetary amount that the investor would receive for each share in the event that the companys assets had to be liquidated and all outstanding debts settled. The formulas and examples for calculating book value per share. The blue line in the chart below shows the % change in brka shares during a fiscal year, and the red bars show the premium of share price over book value. Current and historical book value per share for carnival ccl from 2006 to 2020.
In accordance with recently published financial statements the book value per share of american airlines group is about 0. The book value per share is the value each share would be worth if the company were to be liquidated, all the bills paid, and the assets distributed. Book value per share is usually used to compute the value or price per share of a companys stock during liquidation. Sep 30, 2011 but value investors tend to find book value a good starting point to investigating a company, especially if the per share stock price crosses below that companys book value. Book value is used in the financial ratio pricebook. We show last 10 years historical price, book values, pe ratios etc. Book value is the net asset value of the company according to standard accounting practice gaap, audited. It relates the market price of a stock to its book value. Aug 12, 2017 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 share after all debts are paid accordingly. This calculation is often modified to exclude intangible assets, because they are not readily convertible to cash, in which case the calculation is. The expression of the value of a company or fund per share. Find the latest book value per share for mcdonalds corporation mcd.
Bmw book value per share actual data and historical chart was last updated on may of 2020 according to the latest annual and quarterly financial. 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 share after all debts are paid accordingly. Bv is considered to be the accounting value of each share, which may be drastically different than what the market is valuing the stock at. Ps can also be determined by dividing the price of a stock per share by pershare revenue. The book value per share is the amount of the assets that will go to common equity in the event of liquidation. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. What is the historical relationship between berkshire hathaways. Nov 06, 20 where book value per share equals shareholders equity divided by number of shares outstanding so one day, a company can have a pb of 1, meaning that bv and mv are equal. Mar 28, 2017 book value per share equals total assets minus total liabilities divided by total outstanding shares. Book value per share equals total assets minus total liabilities divided by total outstanding shares. For example if the pb ratio is 4 it means that for every rs 1 in books, the price paid by the market is rs 4. If you buy a share at rs 100 and its book value is rs 120, then the share is considered a value buy.
Online finance calculator which helps to calculate the book value per share from the values of stack holders equity, preferred stock and total outstanding shares. It is a valuation metric that sets the floor for stock prices under a. Pb ratio market price per share book value per share the market price divided by book value shows the market value of every rupee of asset that the company has. Book value per share calculator for common stock finance. Book value per share of common stock explanation, formula. During the past 12 months, facebooks average book value per share growth rate was 20. May 22, 2019 book value per share compares the amount of stockholders equity to the number of shares outstanding. So higher book value means the shares have more liquidation value. Book value of an asset refers to the value of an asset when depreciation is accounted for. This interpretation is simplistic and deeper analysis is recommended. For the most part the book value bv really doesnt tell us a whole lot. During the past 3 years, the average book value per share growth rate was 20. How to find a companys book value per share over past 10.
If you want to compare companies, you can convert to book value per share, which is simply the book value divided by the number of outstanding shares. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Its book value per share for the quarter that ended in dec. Book value per share bvps is a measure of value of a companys common share based on book value of the shareholders equity of the company. Find out all the key statistics for cabot corporation cbt, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Jan 04, 20 under the key ratios navigation tab, theres a wealth of information available, all presented in 10year historical format, along with the latest ttm data. Instead of showing the data in plain numbers, we show that in terms of charts so that it i. The simplest explanation i can give is that it tells potential investors how much their shares would be worth in the event the company in question goes out of business. What does book value per share explain about the business.
Historical and current endofday data provided by factset. What remains is the equity that is distributable to its shareholders. Price to book value is a valuation ratio that is measured by stock price book value per share. This calculation is often modified to exclude intangible assets, because they are not readily convertible to cash, in which case the calculation is called the tangible book value per share. In financial jargon, book value per share is the value of total assets divided by total number of outstanding shares in the market. But value investors tend to find book value a good starting point to investigating a company, especially if the pershare stock price crosses below that companys book value. Book value per share how is book value per share abbreviated. During the past 5 years, the average book value per share. Financial analysts usually compare the book value per share with its market price for fundamental analysis of shares. Is it better to buy a company with a lower book value.
Included in the upper table are key metrics such as historical eps, dividends, number of shares, book value per share, free cash flow, margin data, etc. Book value per share can be defined as the amount of equity available to. Ps ratio an rationale for the ps ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as eps or book value. Although the book value of equity per share is a factor that can be used by the investors to determine the value of stock, it presents only a limited value of the firms situation. Crown castle international price to book value cci. In the case of a mutual fund, this is the per share prorated value of the securities underlying the fund. Question on book value per share aussie stock forums. The stock price valuation of earnings per share and book. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. It is calculated once per day at the end of the trading day and functions as the share price of the mutual fund for the next trading day. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. The book value per share may be used by some investors to determine the equity in a company relative to the market value of the company, which is the price of its stock. Top 2 websites for 10year historical stock data stockodo.
Should the company decide to dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are. The book value of a company divided by the number of shares outstanding. The formulas and examples for calculating book value per share with and without preferred stock are given below. If all of the assets were sold off and all of the liabilities were paid off, the shareholders would be left with the equity. Jan 29, 2018 book value appeals more to value investors who look at the relationship to the stocks price by using the price to book ratio. During the past 5 years, the average book value per share growth rate was 22. Book value per share is a widely used stock evaluation measure. Both of these should be available historically via free online sources. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. The current year enterprise value over ebitda is expected to grow to 291. Under the key ratios navigation tab, theres a wealth of information available, all presented in 10year historical format, along with the latest ttm data.
Then it is divided by the number of shares that has been increased by those added. Is there an app which shows historic sharestock prices, pe, book. Facebooks book value per share for the quarter that ended in dec. Mostly, the book value is calculated for common stock only. This makes sense because equity represents the net assets of a business. During the past 3 years, the average book value per share growth rate was 15. Carnival book value per share 20062020 ccl macrotrends. Net out preferred equity if youre looking for book value per common share. While book value per share is a good way to evaluate a stock, its more of an accountingbased tool and doesnt necessarily reflect the true market value of a publicly traded company companies. If a corporation does not have preferred stock outstanding, the book value per share of stock is a corporations total amount of stockholders equity divided by the number of common shares of stock outstanding on that date for example, if a corporation without preferred stock has stockholders equity on december 31 of. If you buy a share at rs 100 and its book value is rs 120, then the share is considered a valuebuy. Alibaba group holding limited baba book value per share. Current and historical book value per share for 3m mmm from 2006 to 2020.
217 497 207 1067 1058 1198 95 45 436 1641 1016 338 1334 1553 245 1183 1479 34 1336 669 628 1369 443 601 48 1283 875 1388 958 76 588 1275 774