Buffett puts the final nail in the coffin of book value ft. Why apple wants to revalue its shares business insider. The price to book ratio pb ratio is a ratio used to compare a stocks market value to its book value. Book value might also be a good approach if a company has particularly low profits. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. 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. Book value of equity formula, example how to calculate. Market to book ratio formula, examples calculations. Let us take the example of a company named rsz ltd. 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.
Free cash flow weighted average shares outstanding diluted apple inc. How to find a companys book value per share over past 10. Apple annual and quarterly earnings per share history from 2006 to 2019. 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. Stocks trading below their book value can give decent. Do the calculation of book value of equity of the company based on the given information. 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. By dividing book value by the total number of shares outstanding, you can find book value per share. Net out preferred equity if youre looking for book value per common share.
Total shareholders equity common shares outstanding. Earnings per share eps is the portion of a companys profit allocated to each outstanding share of common stock. Apple is number one stock in market capitalization category among related companies. The market value is the value of a company according to the markets. The ratio of market capitalization to book value per share for apple is about 49,194,232,400. 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. Apple earnings per share by quarter 20052020 statista. The graham number formula would suggest a pass on that stock. What is book value per share and how can it help you in. Apple price to book ratio 20062020 aapl macrotrends. Find the latest book value per share for apple inc. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more.
During the past 3 years, the average book value per share growth rate was 5. Apple s book value per share for the quarter that ended in mar. 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. 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. Aapl stock apple stock price today markets insider. Earnings per share serves as an indicator of a companys profitability. That combination causes the book value scorecard to become. Using the pricetobook ratio to analyze stocks the motley fool. As on march 1, 2019, the current market value of each share of apple inc. Nyse composite index mini value new methodology 1,105. Book value per share financial definition of book value per share.
If reported by the company, the book value of common equity on a per basic share basis. 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. The distinction between book value and market value of. Aapl free cash flow per share data is not available for the most recently reported fiscal quarter, ending 20200331. Apple is number one stock in cash per share category among related companies. Apple eps earnings per share 20062020 aapl macrotrends. It is calculated by dividing the current closing price. 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. Current and historical book value per share for apple aapl from 2006 to 2019. During the past 12 months, apple s average book value per share growth rate was 22. Each transaction makes per share intrinsic value go up, while per share book value goes down. Pe ratio is one of the most widely used tools for stock sele. Please note, you need a premium subscription to access data for bvps to view the full list of supported financial metrics please see complete metrics listing learn more about. It is rated second in book value per share category among related companies.
Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. The figure has fluctuated over the years, hitting a low of 0. A measure of financial performance calculated as operating cash flow minus capital expenditures, expressed on a per share basis. Historical price to book ratio values for apple aapl over the last 10 years. 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. During the past 5 years, the average book value per share growth rate was 1. Apples book value per share for the quarter that ended in dec. Unlike other psu banks, the market share of the bank rose between 200607. 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.
Free cash flow per share is projected to rize to 22. The current price to book ratio for apple as of april 30, 2020 is 14. The marketto book ratio for apple reflects that fact that apple has used a great deal equity and debt to finance its operations. The book value of a company is the total value of the companys.
View tangible 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. It is rated second in book value per share category among related companies creating about 1. Pricetobook ratio pb ratio definition investopedia. Book value of equity meaning, formula, calculation. During the past 12 months, apples average book value per share growth rate was 18. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Number of shares in mm estimates for apple stock more.
In the second quarter of its 2020 fiscal year, apple s earnings per common share diluted stood at 2. If the market value per share is lower than the book value per share, then the stock price may be undervalued. Both of these should be available historically via free online sources. Apple market capitalization vs book value per share aapl. Jun 12, 2017 this video explains the book value and market value concepts, and illustrates book value versus market value using the example of apple inc. It is a good way to value companies which have significant assets. What is earnings per share, pe ratio, face value and book. Book value per share financial definition of book value.
This is the financialssite for the company apple on markets insider. 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. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity, owners equity, shareholders equity, or simply equity. The current price to book ratio for apple as of may 04, 2020 is 16. Thus, this measure is a possible indicator of the value of a companys stock. Price to book value is a valuation ratio that is measured by stock price book value per share. 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 represents equity of the firm on per share basis. Apple book value per share 20062019 aapl macrotrends. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown.
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