A companys book value is the amount of money shareholders would receive if assets were liquidated and liabilities paid off. Indepth view of key statistics and finances for apple inc. In depth view into apple price to book value including historical data from 1980, charts, stats and industry comps. What is earnings per share, pe ratio, face value and book value. What is earnings per share, pe ratio, face value and book. Find the latest book value per share for apple inc aapl. Stocks trading below their book value can give decent.
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. In depth view into aapl book value per share explanation, calculation, historical data. Book value is the value of an asset reported in the balance sheet of the firm. 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.
You can also use information on the balance sheet to compute the book value per common share. During the past 12 months, apples average book value per share growth rate was 22. What is book value per share and how can it help you in. Mar 23, 2020 centerstate bank weekly price chart, 3 23 20. In depth view into apple enterprise value including historical data from 1980, charts, stats and industry comps. Book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. During the past years, the highest 3year average book value per share growth rate of apple was 3. Both of these should be available historically via free online sources. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity, owners equity, shareholders equity, or. The book value of a company is the total value of the companys. Book value per share bvps valuation ratios price multiples price to earnings pe price to next year expected earnings. Book value per share the ratio of stockholder equity to the average number of common shares.
Apple plunge deepens warren buffetts book value woes. Savvy investors are always on the lookout for stocks that are not fully valued or, still better, are. Apple book value per share 20062020 aapl macrotrends. Apples book value per share for the quarter that ended in dec. Earnings per share serves as an indicator of a companys profitability. Right now you can buy shares in the stock at a 9% discount to book value. Price book value is a widely used stock evaluation measure. Apple s book value per share for the quarter that ended in mar. Apple price to book ratio 20062020 aapl macrotrends. 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.
Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. Apple market capitalization vs book value per share aapl. It can be useful to compare the market price of shares to the book value. To make this easier, convert total book value to book value per share. Feb 04, 2019 book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. During the past 3 years, the average book value per share growth rate was 5. Book value is a key measure that investors use to gauge a stocks valuation. 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. Book value of an asset refers to the value of an asset when depreciation is accounted for. Right now, you can buy shares in the bank for 73% of the book value. Why apple wants to revalue its shares business insider. 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. Aapl stock apple stock price today markets insider.
It is a good way to value companies which have significant assets. 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. 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. Net out preferred equity if youre looking for book value per common share. 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. Heres how much warren buffett has made on apple the motley. Several good stocks are trading below their book value. For this, subtract the book value of preferred stock from the total stockholders equity. The current price to book ratio for apple as of may 11, 2020 is 17. By dividing book value by the total number of shares outstanding, you can find book value per share. Earnings per share eps is the portion of a companys profit allocated to each outstanding share of common stock. Book value of equity total assets total liabilities. How to calculate the book value of a company sapling.
Divide the result by the number of common shares outstanding. Apr 06, 2020 right now you can buy shares in the stock at a 9% discount to book value. Book value of equity meaning, formula, calculation. Book value vs market value of equity top 5 best differences. 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.
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. 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. Apple plans to bring employees back to office even as tech peers hold off. In other words, the value of all shares divided by the number of shares issued. 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. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. 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. Nov 25, 2019 it can be useful to compare the market price of shares to the book value. Depreciation is the reduction of an items value over time. Apple employees to start returning to offices in phases yahoo 05 15. It indicates the level of safety associated with each common share after removing the effects of liabilities.
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. 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. Stocks trading below their book value can give decent returns. Price to book value is a valuation ratio that is measured by stock price book value per share. 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. 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.
Book value per share is a widely used stock evaluation measure. The book value approach to business valuation is not adequate for most small businesses. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Us perspective most people would call this par or par value. 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. Apple is number one stock in market capitalization category among related companies. Book value might also be a good approach if a company has particularly low profits. 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. Current and historical book value per share for apple aapl from 2006 to 2020. 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. Net asset value per share the expression of the value of a company or fund per share. Book value, per share, reveals the current state of the company and ignores future growth potential. Book value per share financial definition of book value per share. The market value is the value of a company according to the markets.
From the perspective of an analyst or investor, it is all the better if. 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. Bank of america corporation bac valuation measures. Book value per share financial definition of book value. Pe ratio is one of the most widely used tools for stock sele. Historical price to book ratio values for apple aapl over the last 10 years.
Book value of equity formula, example how to calculate. During the past 5 years, the average book value per share growth rate was 1. The ratio of market capitalization to book value per share for apple is about 49,194,232,400. Heres how much warren buffett has made on apple the. 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. How to find a companys book value per share over past 10. Apr 15, 2020 a companys book value is the amount of money shareholders would receive if assets were liquidated and liabilities paid off.
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