Tangible book value per share is calculated as the total tangible equity divided by. Its book value per share for the quarter that ended in. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. The current price to book ratio for amazon as of february 14, 2020 is 17. Book value is equal to the value of the firms equity. Tangible book value tbv is calculated by subtracting intangible assets from the companys book value. The price to book ratio or pb is calculated as market capitalization divided by its book value. Amazon price to book ratio 20062020 amzn macrotrends. Intangible assets are defined as identifiable nonmonetary assets that cannot be seen, touched or physically measured. Apples operated at median price tangible book value of 5. Price to tangible book ratio has increased due to shareprice growth of 6.
Examples of intangible assets include trade secrets, s, patents, trademarks. Apples tangible book value per share for the quarter that ended in mar. Tangible book value is the same thing as book value except it excludes the value of intangible assets. Price to book value is a valuation ratio that is measured by stock price book value per share.
Tangible assets are recorded on the balance sheet initially, but as they are used up, they get. In this segment of the motley fool s financialsfocused show, where the money is. Apples latest twelve months price tangible book value is. Apple incs price to tangible book value ptbv is 17. Apple tangible assets book value per share over last 10. Apple dividends per basic common share is considerably stable at the moment as compared to the last year. Historical price to book ratio values for amazon amzn over the last 10 years. Most investors are familiar with the pe ratio, but fewer are comfortable with a metric like tangible book value. The company current value of dividends per basic common share is estimated at about 2. Dig in deeper by evaluating valuation ratios against historical medians, industry averages, and even forward estimates. Conversely, market value shows the current market value of the firm or any asset. The value of tangible assets book value per share are projected to decrease to 61. Tbv is frequently used to illustrate how much of a company is left after a bankruptcy filing.
This results in a much more conservative assessment of the firms shareholder equity. Time series data tables show 10 years of history, and interactive charts let you visualize key metrics over adjustable. Hence, apples price to tangible book ratio of today is. Tbvps determines the potential value per share of a company in the event. Tangible book value per share tbvps is the value of a companys tangible assets divided by its current outstanding shares. For example, some growth stock etfs like the vanguard growth etf nysemkt. Tbv is frequently used to illustrate how much of a company is. Historical price to book ratio values for apple aapl over the last 10 years. Book value does not carry much meaning for servicebased firms with few tangible. Intangible assets, such as goodwill, are assets that you cant see or touch. A tangible asset is anything that has commercial or exchange value.
The value of analysing the tangible assets of the organisation lies in the determination of the potential for the creation of competitive advantage grant 2007. Earnings per diluted share is projected to rize to 11. Stocks trading below their book value can give decent. During the period from 2010 to 2020, apple tangible assets book value per share yarly data series regression line had median of 57. A simple price chart only tells a small part of the story. During the past years, the highest 3year average book value per share growth rate of apple was 3. How book value and roe are intertwined the motley fool. Intangible book value, especially for banks, is usually goodwill. For the calculation of book value, only tangible assets are taken into consideration, but market value considers both tangible as well. To calculate the tangible book value per share, malcolm finds that the firms number of shares outstanding is 2,000,000 million. Any security trading for less than its tangible book value is manna from heaven for value. The current price to book ratio for apple as of may 20, 2020 is 17. Amount of investment in marketable security, classified as current. A tangible book value per share tbvps is a method of valuing a company on a pershare basis by measuring its equity after removing any.
To arrive at net tangible assets we take the firms shareholder equity value or book value and then subtract any goodwill, intangible assets, or tax receivables that the company has. Find the latest book value per share for apple inc aapl. Through extensive testing and data analysis, we developed these ratings as. Looking back at the last five years, apples price tangible book value. In depth view into apple tangible book value per share including historical data from 1980, charts, stats and industry comps. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity, owners equity, shareholders equity, or. Price to tangible book value is a valuation ratio expressing the price of a security compared to its hard book value as reported in the balance. Depreciation on property, plant and equipment is recognized on a straightline basis over the estimated useful lives of the assets, which for buildings is the lesser of 30 years or the remaining life of the underlying building. If a company acquires assets at the prices above the book value, it may carry goodwill on its balance sheet. Quarter and due to tangible book value increase, to price to tangible book ratio of. Such as abs engineering techniques, this technique has the performance of heat. Difference between book value and market value with.
Apple inc price to tangible book ratio ptb ratios, aapl. The book value is essentially the tangible accounting value of a firm. Theoretically, ptbv represents the amount of money that shareholders would receive for each share owned if the company were to liquidate its operations. Tangible assets are also the easiest to value since they typically have a finite value and life span.
Apples book value per sharefor the quarter that ended in mar. Tangible book value per share tbvps equals a companys net tangible assets divided by its number of shares outstanding. The priceto book pb ratio has been favored by value investors for decades and is widely used by market analysts. Tangible book value per share tbvps definition investopedia. Apple tangible book value per share aapl zacks advisor tools. Fundamental analysis data for apple inc aapl, including priceearnings ratios and earnings per share, at ally invest. Aapl price to tangible book value ptbv chart and history. Based on analysis of the tangible and intangible resources of nokia and apple. Apple tangible book value per share charts, historical data, comparisons and more at zacks advisor. However, tangible book value may be substantially different from market value, especially in hightech, knowledgebased and other industries whose primary assets are not tangible.
Its book value per share for the quarter that ended in dec. Tangible book value per share is the pershare value of a companys equity after removing any intangible assets. Analysis tangible resources apple s tangible resources are extensive and widely documented despite the companys high level of security in matters of design. Book value of an asset is the value at which the asset is carried on a balance sheet and calculated by taking the cost of an asset minus the accumulated depreciation. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. Since 2008, aapls price to tangible book value ptbv has increased from. So, its the value that exceeds the tangible value of assets from an acquisition. The yrating is based on three components the value score, fundamental score, and valuation from historical multiples. Weve taken the emotion out of equity analysis with our 100% quantitative stock rating methodology.
Several good stocks are trading below their book value. What is book value per share and how can it help you in. Book value per share is a widely used stock evaluation measure. Apples tangible book value per share for the quarter that ended in dec. 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. Apple price to book ratio 20062020 aapl macrotrends. Theoretically, ptbv represents the amount of money that. Its important to recall that book value was once called tangible book value, which more accurately describes what it purports to represent.
A higher ptbv may indicates a higher level of risk due to increased potential for share price losses. Apple gross profit is considerably stable at the moment as compared to the last year. Book value per share is a reliable barometer of a stocks potential value. Total tangible equity is calculated as the total stockholders equity minus preferred stock minus intangible assets. Book value changes annually, but market value changes every next moment.