Apr 06, 2020 right now you can buy shares in the stock at a 9% discount to book value. Several good stocks are trading below their book value. It is rated second in book value per share category among related companies. 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. Dec 01, 2019 book value of a firm, in an ideal world, represents the value of the business the shareholders will be left with if all the assets are sold for cash and all debt is paid off today. Book value, per share, reveals the current state of the company and ignores future growth potential. Divide the result by the number of common shares outstanding. Current and historical book value per share for apple aapl from 2006 to 2020.
Book value of equity is an important concept because it helps in the interpretation of the financial health of a company or firm as it is the fair value of the residual assets after all the liabilities are paid off. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. How to find a companys book value per share over past 10. Aapl stock apple stock price today markets insider. 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. The market value is the value of a company according to the markets. Book value of a firm, in an ideal world, represents the value of the business the shareholders will be left with if all the assets are sold for cash and all debt is paid off today. To make this easier, convert total book value to book value per share. Book value is a key measure that investors use to gauge a stocks valuation. Apple price to book ratio 20062020 aapl macrotrends.
Book value per share bvps valuation ratios price multiples price to earnings pe price to next year expected earnings. Price to book value is a valuation ratio that is measured by stock price book value per share. The ratio of market capitalization to book value per share for apple is about 49,194,232,400. How to calculate the book value of a company sapling.
Apple market capitalization vs book value per share aapl. Net asset value per share the expression of the value of a company or fund per share. Book value of equity formula, example how to calculate. To find book value, add up everything the company owns in terms of assets, then subtract everything the company owes, such as debts and other liabilities. Pe ratio is one of the most widely used tools for stock sele. The book value approach to business valuation is not adequate for most small businesses. During the past 5 years, the average book value per share growth rate was 1.
Savvy investors are always on the lookout for stocks that are not fully valued or, still better, are. Book value per share should not be thought of as an indicator of economic worth, since it reflects accounting valuation and not necessarily market valuation. Earnings per share eps is the portion of a companys profit allocated to each outstanding share of common stock. Book value vs market value of equity top 5 best differences.
In depth view into aapl book value per share explanation, calculation, historical data. Us perspective most people would call this par or par value. From the perspective of an analyst or investor, it is all the better if. Net out preferred equity if youre looking for book value per common share. Apr 15, 2020 a companys book value is the amount of money shareholders would receive if assets were liquidated and liabilities paid off. It is therefore a much more conservative way of valuing a company than using earnings based model where one needs to estimate future earnings and growth.
During the past 12 months, apples average book value per share growth rate was 22. Apple plans to bring employees back to office even as tech peers hold off. Aapl, including valuation measures, fiscal year financial statistics. Nov 25, 2019 it can be useful to compare the market price of shares to the book value. Find the latest price book value for apple inc aapl. You can apply the same method to get the book value growth rate using book value per share data. It is a good way to value companies which have significant assets. Book value per share financial definition of book value per share. Apple employees to start returning to offices in phases yahoo 05 15. 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. Apple book value per share 20062020 aapl macrotrends.
Indepth view of key statistics and finances for apple inc. 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. Why apple wants to revalue its shares business insider. In other words, the value of all shares divided by the number of shares issued. Book value of equity total assets total liabilities. Find out all the key statistics for bank of america corporation bac, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Heres how much warren buffett has made on apple the. At the same time, berkshire hathaways book value grew just 0. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding.
The book value of a company is the total value of the companys. Right now you can buy shares in the stock at a 9% discount to book value. Stocks trading below their book value can give decent returns. Apples book value per share for the quarter that ended in dec. Apple shares are within about 3% of an alltime high, and creeping up on microsoft for the title of worlds most valuable company as the iphone 12 likely to arrive later this year. It indicates the level of safety associated with each common share after removing the effects of liabilities. For this, subtract the book value of preferred stock from the total stockholders equity. Mar 23, 2020 centerstate bank weekly price chart, 3 23 20. Book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. Apple s book value per share for the quarter that ended in mar. What is book value per share and how can it help you in. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value per share financial definition of book value. Stocks trading below their book value can give decent.
From the perspective of an analyst or investor, it is all the better if the balance sheet of the company is marked to market, i. During the past 3 years, the average book value per share growth rate was 5. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Market value is the current valuation of the firm or assets the ongoing price of the share in the market on which it can be bought or sold book value gives us the actual worth of the assets owned by the company whereas market value is the projected value of the firms or the assets worth in the. Earnings per share serves as an indicator of a companys profitability. The current price to book ratio for apple as of may 11, 2020 is 17. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. Feb 04, 2019 book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. Heres how much warren buffett has made on apple the motley. You can also use information on the balance sheet to compute the book value per common share. Book value is the value of an asset reported in the balance sheet of the firm. Depreciation is the reduction of an items value over time. During the past years, the highest 3year average book value per share growth rate of apple was 3. Price book value is a widely used stock evaluation measure.
Right now, you can buy shares in the bank for 73% of the book value. Apple is number one stock in market capitalization category among related companies. By dividing book value by the total number of shares outstanding, you can find book value per share. What is earnings per share, pe ratio, face value and book value. In depth view into apple enterprise value including historical data from 1980, charts, stats and industry comps. The decline in berkshire shares reflects apples impact on the omaha, nebraskabased companys book value, which measures assets minus liabilities and which buffett uses to gauge growth. Apple plunge deepens warren buffetts book value woes. What is earnings per share, pe ratio, face value and book. 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. Both of these should be available historically via free online sources. Book value per share is a widely used stock evaluation measure. In depth view into apple price to book value including historical data from 1980, charts, stats and industry comps. Find the latest book value per share for apple inc aapl. 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.
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 of equity meaning, formula, calculation. Bank of america corporation bac valuation measures. Book value per share the ratio of stockholder equity to the average number of common shares. Apple aapl book value outstanding shares fiscal actual data and historical chart was last updated on may of 2020 according to the latest annual and quarterly financial statements. A companys book value is the amount of money shareholders would receive if assets were liquidated and liabilities paid off. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity, owners equity, shareholders equity, or. Warren buffett is ditching the method he uses to evaluate. It can be useful to compare the market price of shares to the book value. 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.
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