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. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. Book value per share is a widely used stock evaluation measure. Would this imply that if the company were liquidated today the amount of cash generated divided by the number of shares would be 0. A low pb ratio is commonly taken to indicate value whilst a high pb ratio is taken to indicate a growth stock. Apples book value per share for the quarter that ended in dec. Price to book value is a valuation ratio that is measured by stock price book value per share. The number of dividends paid to stockholders versus the companys total net income. Mostly, the book value is calculated for common stock only. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Thus, this measure is a possible indicator of the value of a companys stock. Get the latest light stock price and detailed information including news, historical charts and realtime prices. 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. Stock taiko bank stock price today markets insider.
The market value versus book value stock market live. Find the latest book value per share for apple inc aapl. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value per share stock market definition,meaning. In these cases, the stock can be priced way above the book value per share of the company. This formula is also known as book value per common share or book value of equity per share. Trading economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices. During the past years, the highest 3year average book value per share growth rate of apple was 3. Book value of an asset refers to the value of an asset when depreciation is accounted for.
In other words, the value of all shares divided by the number of shares issued. 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. Apple 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. If there is preferred stock outstanding, in the book value per share calculation above,the numerator will need to be adjusted by the value of the preferred stock outstanding to get the stock holders equity. During the past years, the highest pb ratio of apple was 11. Free cash flow per share is projected to rize to 22. Given the following information, calculate the book value per share. Depreciation is the reduction of an items value over time. During the past 5 years, the average book value per share growth rate was 1. Generally, for value investors, pb ratios carry a great significance, as we like the price of a stock to be well supported by the value on the books. Does this mean that on the books each share is worth 0. Book value per share equals total assets minus total liabilities divided by total outstanding shares.
Apple inc is number one stock in cash per share category among related companies. Comparing the stock price to the book value per share is done using the pb ratio, or price to book ratio. This is a percentage of the current price of a share. Relating book value per share to market price a favoured tool of value investors is the pb ratio. 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. The formulas and examples for calculating book value per share with and without preferred stock are given below. It does not include warrants, preferred shares, retained earnings, or treasury stock. Te pricetobook ratio p b ratio to evaluates a firms market value relative to its book value. Book value is a key measure that investors use to gauge a stocks valuation.
At the time walmarts 10k for 2012 came out, the stock was trading in. 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. What is the difference between market value per share and. This compares a stocks book value to its market value.
Pricetobook ratio pb ratio definition investopedia. This interpretation is simplistic and deeper analysis is recommended. The market value of a company is how much an acquirer would have to pay to buy all the shares of the company on the open market i. Par value is used as a guarantee to the potential investor that the company will not issue shares under that par value. If the market value per share is lower than the book value per share, then the stock price may be undervalued. Google stock apple stock facebook stock amazon stock tesla stock. The book value of a company is the total value of the companys. 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. Book value per share calculator for common stock finance. During the past 3 years, the average book value per share growth rate was 5.
The value per share is simply that value divided by the number of shares outstanding. The cupertino, californiabased company was established in 1977 as apple computer inc. Ps can also be determined by dividing the price of a stock per share by pershare revenue. Treasury stock 2,000 common shares at cost 20,000 total. Find the latest book value per share for amazoncom inc amzn.
It relates the market price of a stock to its book value. Apples book value per share for the quarter that ended in mar. Stock analysis for crystal lake mining corp naa including stock price, stock chart, company news, key statistics, fundamentals and company profile. The book value of common equity on a per basic share basis. Historical price to book ratio values for apple aapl over the last 10 years. Others argue that apple, which has the largest pile of cash held by a u. The pricetobook ratio measures a companys market price in relation to. Apple, still the worlds largest company by market value, is a component of 15 growth etfs at the same time that it is part of eight separate value etfs, according to data provider xtf.
How do i interpret pricebook and book value per share on. 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. Book value per share formula above assumes common stock only. The current price to book ratio for apple as of may 12, 2020 is 17. Naa stock quote crystal lake mining corp bloomberg markets. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the. A company can have a pe ratio of na if its newly listed on the stock exchange. Its book value per share for the quarter that ended in jun. Apple inc aapl fundamental analysis, stock research. What is the par or stated value per share of apples common stock. 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.
Im really lost here could someone please show me the steps. In this equation, book value per share is calculated as follows. One of these new arguments is that apples price to book ratio is too high. The following section summarizes insights on apple inc. It is rated third in book value per share category among related companies creating. The stock price valuation of earnings per share and book. Book value per share bvps total stockholders equity preferred equity number of shares of common stock outstanding step 1. You can apply the same method to get the book value growth rate using book value per share data. Therefore, book value per share book value shares outstanding. 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.
Apples book value per sharefor the quarter that ended in mar. Part 2 1 what is the par or stated value per share of. Some companies even have negative equity, so the pricetobook ratio cannot be applied to them. Looking into apple inc growth rates, revenue grew by 0. Table 4 present the combined value relevance of earnings per share and book value by dividing total sample into profit and loss firms groups. View book value per share for aon access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Apple price to book ratio 20062020 aapl macrotrends. Aapl is one of the worlds leading consumer electronics and personal computer companies. Cadence bank na buys apple inc, truist financial corp, costco wholesale corp.
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