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. Comparing book value and book value per share dummies. And the most mindboggling aspect is how easy it really is to reach that valuation. Book value per share is important for value investors, who pay as much attention to the balance sheet factors of a business as to its income statement factors.
A book value per share of common stock is the same amount as the market value per share. Apple price to book ratio 20062019 aapl macrotrends. Book value per share is a widely used stock evaluation measure. The assets may be carried on the balance sheets at the original cost minus depreciation. Priceearnings ratio is a good tool for comparing the value of competing companies. The book value of common equity on a per basic share basis. 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. This is the financialssite for the company apple on markets insider. What is book value per share and how can it help you in.
The formula for price to book value is the stock price per share divided by the book value per share. The tech company now makes up more than 15% of berkshire hathaways book value. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. The book value per share is determined by dividing the book value by the number of outstanding shares for a company. Using the pricetobook ratio to analyze stocks the motley fool. Apple market capitalization vs book value per share aapl. Par value is used as a guarantee to the potential investor that the company will not issue shares under the par value. Apple book value per share fundamental analysis lookup allows you to check this and other indicators for apple or any other equity instrument. Jun 12, 2017 you use a companys latest balance sheet to come up with the book value of the equity, you look up the number of shares outstanding which is usually mentioned in the earnings per share. 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. If you have spent any time investing in the stock market, you know that value and price are two different measures arrived at by different means. Nov 06, 20 understanding the difference between book value and market value is a simple yet fundamentally critical component of any attempt to analyze a company for investment. Why berkshire hathaway is worth more than its book value.
Pe ratio is one of the most widely used tools for stock sele. Nov 30, 2019 in these cases, the stock can be priced way above the book value per share of the company. Jun 29, 2009 book value is the net asset value of the company according to standard accounting practice gaap, audited. What is the difference between market value per share and. It has filed for a patent for a watch with a circular display, but its. During the past 12 months, apple s average book value per share growth rate was 18.
Forcasts, revenue, earnings, analysts expectations, ratios for apple inc. Enterprise value is projected to rize to about 1150 b this year, although book value per share will most likelly fall to 23. Multiple catalysts, he pointed out, remain as the company benefits from the. May 22, 2019 book value per share compares the amount of stockholders equity to the number of shares outstanding. 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. Compares a firms common equity listed on the balance to the market value of.
Aug 09, 2017 apples stock jumps to another record as postearnings rally continues. Date, stock price, book value per share, price to book ratio. In depth view into aapl book value per share explanation, calculation, historical data and more. Apple s book value per share for the quarter that ended in dec. Berkshires book value, and why the company is worth more. In this case we use the forecasted growth rate based on the. We will walk through this formula and how to find the numbers to plug into the formula, and voila.
Apple in 2017 is expected to make the first design changes to the apple watch since it introduced the device last year. 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. 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. The pbv ratio is the market price per share divided by the book value per share. Mar 28, 2017 book value per share equals total assets minus total liabilities divided by total outstanding shares. Apple inc has a par or stated value of common stock of. Its dividends per share for the trailing twelve months ttm ended in dec. Book value per share is the gaap number number of shares outstanding. Its dividend payout ratio for the three months ended in dec.
Book value per share compares the amount of stockholders equity to the number of shares outstanding. May 06, 2019 to keep things simple, assume widget co. One of these new arguments is that apple s price to book ratio is too high. The problem with comparing apple market share the real mac. In other words, the value of all shares divided by the number of shares issued. This is the price the shares were originally offered for sale. Book value of equity meaning, formula, calculation. Apple inc has a par or stated value of common stock of 000001. Yet, there is an intrinsic flaw to analyzing the success and domination of apple in this way. View daily, weekly or monthly format back to when apple inc. The trading economics application programming interface api provides direct access to our data. 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. The current price to book ratio for amazon as of april 10, 2020 is 16. 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. It is rated second in book value per share category among related companies creating about 1. Thus, this measure is a possible indicator of the value of a companys stock. You use a companys latest balance sheet to come up with the book value of the equity, you look up the number of shares outstanding which is usually mentioned in the earnings per share.
The book value per share is the measure of the recorded value of the companys assets less its liabilities the net assets backing up the businesss stock shares. Despite the high market value for apple, the stock remains relatively cheap, when compared with the other members of. Finally, to solve for the ratio, divide the share price by the book value per. Sep 14, 2017 the device will feel pretty much the same on your wrist as the apple watch series 2.
Price to book value ratio pbv or pb ratio equitymaster. Apples stock jumps to another record as postearnings rally. Market capitalization of consumer electronics industry is presently estimated at about 1. Oct 20, 2018 book value per share is a good measure to value bank stocks. Calculating earnings per share gives investors an estimate of what the company should be worth. Sep 27, 2016 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. During the past years, the highest 3year average book value per share growth rate of apple was 3.
Apple annual and quarterly earnings per share history from 2006 to 2019. View the latest aapl stock quote and chart on msn money. The current price to book ratio for apple as of april 10, 2020 is. This value differs from the market price of the stock, but this is the value that is stated on the stock certificate. First off, despite this intrinsic flaw, ios, in fact, has grown in market share in all places except china since last year. During the past 3 years, the average book value per share growth rate was 5. In this scenario, the socalled priceto book pb ratio is applied with a banks stock price compared to equity book value per share. 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. Dive deeper with interactive charts and top stories of apple inc. May 20, 2017 apples market share is often thrashed on the internet by tech writers with regard to ios. Aapl stock apple stock price today markets insider. This colossal surge in stock value starting in 2001 was due to a few notable factors. Cash per share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. Aapl book value per share explanation usually a companys book value and tangible book per share may not reflect its true value.
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. What is earnings per share, pe ratio, face value and book. Apple s iphone and samsungs galaxy s line havent done enough to boost the companies smartphone market share. Amazon has increased its share count by over 1 million shares per quarter in recent years, and if it continued that in the june quarter, its stock market value. Book value per share is one the easiest accounting formulas out there that can help us determine the value of a bank or financial firms equity.
This may underestimate the true economic values of the assets. Comparing the stock price to the book value per share is done using the pb ratio, or price to book ratio. The ratio of market capitalization to book value per share for apple is about 49,194,232,400 apple is number one stock in market capitalization category among related companies. The value per share is simply that value divided by the number of shares outstanding. 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. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. You also get a dividend of 57 cents per share, more than covered by earnings. Book value is a useful tool for evaluating the market value per share. Discover historical prices for aapl stock on yahoo finance. The book value is essentially the tangible accounting value of a firm.
Whatever is left over is the book value of the company. Water resistance is still offered which is the biggest reason to choose the series 3 over the budget model series 1. A solvency ratio calculated as total assets divided by total shareholders equity. Earnings per share serves as an indicator of a companys profitability. Aapl is about right, maybe slightly undervalued at a 1% discount to what it is available for right now. Amazon price to book ratio 20062019 amzn macrotrends. Depreciation is the reduction of an items value over time. 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. The price to book value ratio, or pbv ratio, compares the market and book value of the company. Cupertino, california november 2, 2017 apple today announced financial results for its fiscal 2017 fourth quarter ended september 30, 2017.
Another big difference when comparing the apple watch series 3 vs apple watch series 2 is the additional storage available on the series 3. 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. Historical price to book ratio values for amazon amzn over the last 10 years. Shares outstanding cagr 10y tenyear compound annual growth rate in.
Comparing the book value to the market value of a company can also. 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. Price to book value is a valuation ratio that is measured by stock price book value per share. Heres how much warren buffett has made on apple the. Apple s dividends per share for the three months ended in dec. Apple aapl tesla tsla amazon amzn amd amd facebook fb. 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. How do i interpret pricebook and book value per share on. Historical price to book ratio values for apple aapl over the last 10 years.
Price book value is a widely used stock evaluation measure. It sells of all its assets, and pays off all its debts. What is the intrinsic value of apple inc aapl simply. Apple eps earnings per share 20062019 aapl macrotrends.