Book value per share bvps overview, formula, example. 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. May 30, 2012 one of these new arguments is that apple s price to book ratio is too high. This represents the minimum value of a companys equity. Book value of an asset refers to the value of an asset when depreciation is accounted for. However, investors must be aware that conventional calculation of book value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms. You can also use information on the balance sheet to compute the book value per common share. Apple book value quarterly stock screener, excel addin.
If a stock is trading at a pb of below 1, either the stock is offering a compelling value or it is a potential red. The book value of a company is the total value of the companys assets, minus the companys. If book value per share is higher than the currently traded stock price, the company can be considered undervalued. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. It allows api clients to download millions of rows of historical data, to query our realtime economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. How to find a companys book value per share over past 10. The expression of the value of a company or fund per share. Investors and stock owners use book value per share of common stock to show how much money their shares are worth on the books after all debt is paid off.
This is a good starting point to calculate the value of a share of common stock. Book value per common share is calculated by dividing the stockholders equity applicable to common shareholders by the number of outstanding common shares. Book value per share is a widely used stock evaluation measure. 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. Book value of equity meaning, formula, calculation. The trading economics application programming interface api provides direct access to our data. 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 common share financial definition of book. Book value per share is calculated by subtracting liabilities and the par value of any outstanding preferred stock from assets and dividing the. It indicates the level of safety associated with each common share after removing effects of liabilities. Book value per share represents equity of the firm on per share basis. During the past 12 months, apple s average book value per share growth rate was 18.
During the past 3 years, the average book value per share growth rate was 5. Using the pricetobook ratio to analyze stocks stock research. Book value, or accounting value, is based on a companys historical. If the market value per share is lower than the book value per share, then the stock. Its book value per share for the quarter that ended in jun. If the company shares are priced much higher than the book value per. The par value of a share of common stock is its stated face value. The current price to book ratio for apple as of april 15, 2020 is 14. Aapl, including valuation measures, fiscal year financial statistics, trading. One of these new arguments is that apples price to book ratio is too high. The book value of common equity on a per basic share basis.
Apple price to book ratio 20062019 aapl macrotrends. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. The book value per common share is a financial ratio that calculates amount of equity applicable to each outstanding common stock. Therefore, it makes sense to use book value per share as a measure of the value of the company to the shareholders. Earnings per share can be defined as a companys net earnings or losses attributable to common shareholders per diluted share. 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. Access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. Why apple wants to revalue its shares business insider. Apple book value quarterly aapl stock screener, excel. Apple annual and quarterly earnings per share history from 2006 to 2019. Historical price to book ratio values for apple aapl over the last 10 years. Book value of equity represents the fund that belongs to the equity shareholders and is available for the distribution to the shareholders and it is calculated as the net amount remaining after the deduction of all the liabilities of the company from its total assets. In general, net asset value per share is the price an investor would receive when selling a funds shares back to the fund.
Book value per share financial definition of book value. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Apple eps earnings per share 20062019 aapl macrotrends. Book value is a widely used stock evaluation measure. For this, subtract the book value of preferred stock from the total stockholders equity. Microsoft corporation common stock msft stock quotes nasdaq. Book value per share compares the amount of stockholders equity to the number of shares outstanding. It allows api clients to download millions of rows of historical data, to query our realtime economic. 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.
If the market value per share is lower than the book value per share, then the stock price may be undervalued. 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 dec. A companys book value of equity per share bvps is the minimum value of its equity and is found by dividing total common stock by the number of the companys outstanding shares. Apple inc has a par or stated value of common stock of 000001. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. Some stockholders have keen interest in knowing the book value of the shares they own. 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. May 22, 2019 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. The book value is essentially the tangible accounting value of a firm.
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. Notice the only the equity applicable to common shareholders is used. Indepth view of key statistics and finances for apple inc. Book value per share of common stock explanation, formula. Book value per share financial definition of book value per share. Thus, this measure is a possible indicator of the value of a companys stock. This value differs from the market price of the stock, but this is the value that is stated on the stock certificate. For the purpose of analysis, the book value of equity is further divided by a total number of. If a stock is trading perfectly inline with its book value, its pb will be 1. The issuer assigns a par value when a stock is originated. The distinction between book value and market value of a stock is basically one of looking back versus looking forward.
Book value of equity per share bvps is the equity available to common shareholders divided by the number of outstanding shares. Net asset value per share is similar in concept to book value per share for other types of firms. The total book value for all of the preferred stock equals the. 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. I am trying to find an efficient, free way to find a companys past book value per share stats over a 10 year period. Since preferred stockholders have a higher claim on assets and earnings than common shareholders. For the purpose of analysis, the book value of equity is further divided by a total number of shares to make book value per share.
Book value per share of common stock is the amount of net assets that each share of common stock represents. You can apply the same method to get the book value growth rate using book value per share data. Find the latest book value per share for apple inc. Mostly, the book value is calculated for common stock only. Nov 30, 2019 therefore, it makes sense to use book value per share as a measure of the value of the company to the shareholders. If the company shares are priced much higher than the book value per share, than the stock price might be too high for purchase.
Is not a very useful measure most of the time is calculated by dividing market value per share by earnings per share reflects the fair. In other words, this is the equity value of each common. Common stockholders equity determined on a per share basis. Apple inc has a par or stated value of common stock of. Apple book value per share 20062019 aapl macrotrends.
I cant find these stats on yahoo finance, bloomberg, etc. By dividing book value by the total number of shares outstanding, you can find book value per share. Current and historical book value per share for apple aapl from 2006 to 2019. This amount applies if a company disbands and liquidates its assets and uses the assets pay off liabilities, the remaining amount goes to the common shareholders. Mar 28, 2017 the par value of a share of common stock is its stated face value. Book value of equity formula, example how to calculate.
Preferred stock redeemable mandatorily redeemable securities of. Aapl book value per share explanation usually a companys book value and tangible book per share may not reflect its true value. Book value of equity represents the fund that belongs to the equity shareholders and is available for the distribution to the shareholders and it is calculated as the net amount remaining after the deduction of. Although investors have many metrics for determining the valuation of a companys stock, two of the most commonly used are book value and market value. Common stockholders equity determined on a pershare basis.
The par value is different from the current market price of the stock. Apr 15, 2020 although investors have many metrics for determining the valuation of a companys stock, two of the most commonly used are book value and market value. Book value per share of common stock of a manufacturing company. Book value is a key measure that investors use to gauge a stocks valuation. Oct 10, 2019 if a stock is trading perfectly inline with its book value, its pb will be 1. During the past years, the highest p b ratio of apple was 10. In the case of a mutual fund, this is the per share prorated value of the securities underlying the fund. The book value of common equity less intangible assets on a per basic share basis. This is the price the shares were originally offered for sale. What is book value per share and how can it help you in. 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. How to calculate book value per share of common stock. The following section summarizes insights on apple inc.
Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value is a key measure that investors use to gauge a stock s valuation. Per share book value, per share, reveals the current state of the. 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.
1054 17 186 1548 568 1151 605 1003 722 891 110 708 884 1159 1441 1390 708 840 429 1063 538 420 49 1609 1491 626 58 625 995 1183 710 1511 1622 651 102 563 127 151 902 717 762 1115 1260 1190