This video explains the book value and market value concepts, and illustrates book value versus market value using the example of apple inc. Ycharts book value of equity is the equivalent of total assets less total liabilities and preferred equity. A firm that generates higher roic % than it costs the company to raise the capital needed for that investment is earning excess returns. The book value of common equity less intangible assets on a per basic share basis. The following section summarizes insights on apple inc. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value share the per share value of a company based on its equity available to common shareholders for the trailing 12 months. Aapl, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. During the past 12 months, apples average book value per share growth rate was 18. Market to book ratio formula, examples calculations. Apple price to book ratio 20062019 aapl macrotrends. Apple is number one stock in market capitalization category among related companies. The tech company now makes up more than 15% of berkshire hathaways book value. This value differs from the market price of the stock, but this is the value that is stated on the stock certificate.
Historical price to book ratio values for apple aapl over the last 10 years. Book value per share bvps valuation ratios price multiples price to earnings pe price to next year expected earnings. The current price to book ratio for apple as of april 10, 2020 is. Apple earnings per share by quarter 20052019 statista.
In case the company does encounter such an event, all assets are liquidated in. Shareholders value each company at so much more than the net book value because the book value only explains the current state of the company. Price book a financial ratio used to compare a companys current market price to its book value. Date, stock price, book value per share, price to book ratio. The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share eps number. View aapl business summary and other industry information. The book value is essentially the tangible accounting value of a firm. Aapl wacc % explanation because it costs money to raise capital. Apples book value per share for the quarter that ended in dec. Quarterly annual figures for fiscal quarter ending 20191231. Book value is the net asset value of the company according to standard accounting practice gaap, audited.
By dividing book value by the total number of shares outstanding, you can find book value per share. What does book value per share explain about the business. Nasdaq gs including stock price, stock chart, company news, key statistics, fundamentals and company profile. During the past 3 years, the average book value per share growth rate was 5. Fundamental analysis data for apple inc aapl, including price earnings ratios and earnings per share, at ally invest. It allows api clients to download millions of rows of historical data, to query our realtime economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. It is rated second in book value per share category among related companies. Apple inc aapl fundamental analysis, stock research. The trading economics application programming interface api provides direct access to our data. In depth view into apple book value per share including historical data from 1980, charts, stats and industry comps. Aapl stock apple stock price today markets insider. If reported by the company, the book value of common equity on a per basic share basis. The book value per share may be used by some investors to determine the.
Par value is used as a guarantee to the potential investor that the company will not issue shares under the par value. Heres how much warren buffett has made on apple the. One of these new arguments is that apple s price to book ratio is too high. This is the price the shares were originally offered for sale. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns.
Indepth view of key statistics and finances for apple inc. Forcasts, revenue, earnings, analysts expectations, ratios for apple inc. Apple market capitalization vs book value per share aapl. As on march 1, 2019, the current market value of each share of apple inc. The price to earnings pe ratio, a key valuation measure, is calculated by dividing the stocks most recent closing price by the sum of the diluted earnings per share from continuing operations. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Apple inc has a par or stated value of common stock of. The distinction between book value and market value. Book value, per share, reveals the current state of the company and ignores future growth potential. Apple inc achieved increase in profitability, due to increase in demand and cost control.
Quarterly annual figures for fiscal year ending 20190930. Book value per share is the gaap number number of shares outstanding. The book value of common equity on a per basic share basis. Current and historical pe ratio for apple aapl from 2006 to 2019. Lets use apples aapl most recent earnings announcement as an example. The ratio of market capitalization to book value per share for apple is about 49,194,232,400. This is the financialssite for the company apple on markets insider.
How do i interpret pricebook and book value per share on. Apple stock in 20 proves the market is not always efficient. Book value per share is a widely used stock evaluation measure. 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. A ratio of more than one indicates that the investors value the company more than its book value. Aapl is a premier value play, while alphabet inc googl is a premier growth pick. In accordance with recently published financial statements the book value per share of apple is about 23. Find the latest book value per share for apple inc. A companys book value is the amount of money shareholders would receive if assets were liquidated and liabilities paid off.
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