Mar 08, 2020 par value is the face value of a bond. Is it better to buy a company with a lower book value. May 30, 2012 one of these new arguments is that apple s price to book ratio is too high. 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. Does this mean that on the books each share is worth 0. 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.
Book value per share equals total assets minus total liabilities divided by total outstanding shares. Apple annual and quarterly earnings per share history from 2006 to 2019. Apple s book value per share for the quarter that ended in dec. Historical price to book ratio values for pepsico pep over the last 10 years.
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. 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. During the past years, the highest 3year average book value per share growth rate of apple was 3. Is there an app which shows historic sharestock prices, p. Apple eps earnings per share 20062020 aapl macrotrends.
During the past 5 years, the average book value per share growth rate was 1. Aapl stock apple stock price today markets insider. 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. View book value per share for aapl access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. One of these new arguments is that apples price to book ratio is too high. Apple aapl book value per share actual data and historical chart was last updated on may of 2020 according to the latest annual and quarterly financial statements. Historical price to book ratio values for apple aapl over the last 10 years. Jun 12, 2017 the distinction between book value and market value of a stock is basically one of looking back versus looking forward. The current price to book ratio for apple as of may 12, 2020 is 17. The book value per share is the amount of the assets that will go to common equity in the event of liquidation. 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.
Thus, this measure is a possible indicator of the value of a companys stock. Book value per share compares the amount of stockholders equity to the number of shares outstanding. Apple market capitalization vs book value per share aapl. 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. Treasury stock may have come from a repurchase or buyback from shareholders, or it. Instead of showing the data in plain numbers, we show that in terms of charts so that it i. May 22, 2019 book value per share compares the amount of stockholders equity to the number of shares outstanding. Depreciation is the reduction of an items value over time. Would this imply that if the company were liquidated today the amount of cash generated divided by the number of shares would be 0. In this equation, book value per share is calculated as follows. Par value is used as a guarantee to the potential investor that the company will not issue shares under the par value. You can also calculate book value on a pershare basis by dividing this number by the number of outstanding shares a company has.
This is the price the shares were originally offered for sale. Book value per share of common stock explanation, formula. 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. This value differs from the market price of the stock, but this is the value that is stated on the stock certificate. Get the latest apple stock price and detailed information including aapl news, historical charts and realtime.
So higher book value means the shares have more liquidation value. Treasury stock treasury shares are the portion of shares that a company keeps in its own treasury. Apple inc has a par or stated value of common stock of. Bankers, apple possible casualties in irish politics shock. What is book value per share and how can it help you in. Using the pricetobook ratio to analyze stocks the motley fool. We show last 10 years historical price, book values, pe ratios etc. Book value of an asset refers to the value of an asset when depreciation is accounted for. Date, stock price, book value per share, price to book ratio. Book value per share financial definition of book value. How to find a companys book value per share over past 10. Mostly, the book value is calculated for common stock only. Outstanding shares refer to a companys stock currently held by all its shareholders, including share blocks held by institutional investors and.
The services business is making apple stock a safe bet 247 wall st. Comparing the stock price to the book value per share is done using the pb ratio, or price to book ratio. During the past 12 months, apple s average book value per share growth rate was 22. Free cash flow per share is projected to rize to 22. Apple is number one stock in market capitalization category among related companies. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. The distinction between book value and market value of a stock is basically one of looking back versus looking forward. Book value of equity meaning, formula, calculation. Apples book value per share for the quarter that ended in mar. You can apply the same method to get the book value growth rate using book value per share data. View realtime stock prices and stock quotes for a full financial overview. Aapl stock quote, history, news and other vital information to help you with your stock trading and investing. The formulas and examples for calculating book value per share with and without preferred stock are given below.
During the past 3 years, the average book value per share growth rate was 5. Pricetobook ratio pb ratio definition investopedia. 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. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the. You can also calculate book value on a per share basis by dividing this number by the number of outstanding shares a company has. By dividing book value by the total number of shares outstanding, you can find book value per share. Its book value per share for the quarter that ended in jun. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. Price to book value is a valuation ratio that is measured by stock price book value per share. Apple s book value per share for the quarter that ended in mar. The book value is essentially the tangible accounting value of a firm. It is rated second in book value per share category among related companies.
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. During the past 12 months, apple s average book value per share growth rate was 21. 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. Strictly speaking, the higher the book value, the more the share is worth.
Earnings per share can be defined as a companys net earnings or losses attributable to common shareholders per diluted share base, which includes all convertible securities and debt, options and warrants. Both of these should be available historically via free online sources. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. How do i interpret pricebook and book value per share on. Net out preferred equity if youre looking for book value per common share. During the past years, the highest pb ratio of apple was 10. 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. Oct 22, 2010 the priceto book value ratio is calculated by dividing the current share price by its book value all fixed and current assets minus current and longterm liabilities per share book value. In these cases, the stock can be priced way above the book value per share of the company. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. It has no specific relation to the value of the companys assets, such as book value per share does, which is based on the information from a companys balance sheet. View book value quarterly for aapl access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. Book value, or accounting value, is based on a companys historical.
The current price to book ratio for pepsico as of may 14, 2020 is. If the market value per share is lower than the book value per share, then the stock price may be undervalued. The market price per share of stockusually termed simply share price is the dollar amount that investors are willing to pay for one share of a companys stock. Book value per share is a widely used stock evaluation measure. Par value is important for a bond or fixedincome instrument because it determines its maturity value as well as the dollar value of coupon payments. Find the latest book value per share for apple inc aapl. Pepsico price to book ratio 20062020 pep macrotrends.