Historical price to book ratio values for facebook fb over the last 10 years. Facebook price to book ratio 20092019 fb macrotrends. The standard deviation of monthly price changes during the year is the proxy for. The book value per common share formula below is an accounting measure based on historical transactions. Book value of an asset refers to the value of an asset when depreciation is accounted for. Book value per share bvps is a ratio used to compare a firms common shareholders equity to the number of shares outstanding. Book value represents that part of the accounting value of a business that will be left after debts are paid off. 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. 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. If a stock is trading perfectly inline with its book value, its pb will be 1. Book value per share formula of utc company shareholders equity available to common stockholders number of common shares.
How to figure the book value of bank stock finance zacks. 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. The formula for price to book value is the stock price per share divided by the book value per share. The market value per share is a forwardlooking measure of what the investment community believes a companys shares are worth. Verizon price to book ratio 20062019 vz macrotrends. You can also determine the book value per share by dividing the number of common shares outstanding into total stockholders equity. What is book value per share and how can it help you in. The stock price valuation of earnings per share and book value. Find the latest book value per share for sandridge energy, inc. Book value per share calculator for common stock finance.
The current price to book ratio for facebook as of april 16, 2020 is 4. Pb is a stocks share price divided by its book value per share. Accounting information is explained by the book value and earnings per share. The formula for book value per share requires three variables. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. In this video on book value per share of common stock, we look at the book value per share formula and calculate bvps along with practical examples. Share price book value per share price to book ratio admittedly, this is a much more complicated process than the ratios mentioned above and is.
Historical price to book ratio values for verizon vz over the last 10 years. The important criteria for determining the firms value is the stocks price are the. Find the latest book value per share for the home depot, inc. Book value per share tells investors what a banks, or any stocks, book value is on a per share basis.
Book value per common share bvps definition investopedia. Also defined as a firms next asset value, book value per share is essentially the total assets of a company, but not counting a firms assets and liabilities. Investors need to look at both book value and market value of the share. Book value per share formula, calculator and example. The current price to book ratio for verizon as of april 17, 2020 is 3. Book value per share of common stock formula, example. Earning per share, market price, price earning ratio and price to.
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. When book value per share is high compared to a companys share price, the companys stock is deemed as undervalued. To arrive at this number, subtract liabilities from assets. Book value per share is a widely used stock evaluation measure. Anyone using this measure should be aware of two issues, which are. Book value per share bvps takes the ratio of a firms common equity divided by its number of shares outstanding. Stocks trading below their book value can give decent.
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