The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Book value of an asset refers to the value of an asset when depreciation is accounted for. The book value per preferred share is calculated by dividing the call price or par valueplus the cumulative dividends in arrears by the number of outstanding preferred shares. Date, stock price, book value per share, price to book ratio.
Jun 05, 2007 given the following information, calculate 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. The blue line in the chart below shows the % change in brka shares during a fiscal year, and the red bars show the premium of share price over book value per share multiple pb at the end of that fiscal year. Financial analysts usually compare the book value per share with its market price for fundamental analysis of shares.
Question on book value per share aussie stock forums. Ford motor f 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. Strictly speaking, the higher the book value, the more the share is worth. 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.
The price to book pb ratio is used to compare a companys market price to book value and is calculated by dividing price per share by book value per share. What is the historical relationship between berkshire. Mar 28, 2017 book value per share equals total assets minus total liabilities divided by total outstanding shares. Given the following information, calculate the book value per share. Book value per share 5 year compound annual growth rate. Book value per share bvps total stockholders equity preferred equity number of shares of common stock outstanding step 1.
I am borrowing extracts from my previous posts to make this answer complete. He is asked to calculate the book value per share of a stock and check if the stock trades at a fair value. Ford motor cos book value per share for the quarter that ended in mar. Ford motor book value per share 20062020 f macrotrends. This calculation is often modified to exclude intangible assets, because they are not readily convertible to cash, in which case the calculation is called the tangible book value per share. If you buy a share at rs 100 and its book value is rs 120, then the share is considered a valuebuy.
Find the latest book value per share for ford motor company f. Current and historical book value per share for ford motor f from 2006 to 2020. Depreciation is the reduction of an items value over time. I have already explained few terms in my previous answers. Ford motor price to book ratio 20062020 f macrotrends. Carter mcbride started writing in 2007 with cmbas ip section.
Find out all the key statistics for ford motor company f, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Relating book value per share to market price a favoured tool of value investors is the pb ratio. Treasury stock 2,000 common shares at cost 20,000 total stockholders. Find the latest book value per share for forward industries, inc.
The book value of a company divided by the number of shares outstanding. In accordance with recently published financial statements the book value per share of american airlines group is about 0. Although the book value of equity per share is a factor that can be used by the investors to determine the value of stock, it presents only a. During the past 5 years, the average book value per share growth rate was 6. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. So higher book value means the shares have more liquidation value. In depth view into ford motor tangible book value per share including historical data from 1972, charts, stats and industry comps. During the past 3 years, the average book value per share growth rate was 4.
Book value per share financial definition of book value per share. Pbv ratio the pbv ratio is interpreted as an indicator of market judgment about the relationship between a companys required rate of return and its actual rate of return. Im really lost here could someone please show me the steps. 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. Book value per share is calculated by subtracting liabilities and the value of any outstanding preferred stock from assets and dividing the remainder by the number of. A low pb ratio is commonly taken to indicate value whilst a high pb ratio is taken to indicate a growth stock. Historical price to book ratio values for ford motor f over the last 10 years. Should the company decide to dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are. During the past 12 months, ford motor cos average book value per share growth rate was 7. In other words, divide the applicable equity by the number of shares. 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 share after all debts are paid accordingly. Ford motor cos book value per share for the quarter that ended in dec. If the company shares are priced much higher than the book value per share, than the stock price might be too high for purchase.
Calculate book value per share from the following stockholders equity section of a company. Therefore, it makes sense to use book value per share as a measure of the value of the company to the shareholders. Book value per share definition the book value per share is the value each share would be worth if the company were to be liquidated, all the bills paid, and the assets distributed. Keep in mind that the book value per share will not be the same as the market value per share. In other words, the value of all shares divided by the number of shares issued. The book value of equity per share is a financial measure which indicates a per share estimation of the minimum value of an entitys equity. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the book value of its assets and pays liabilities at their book value. In accordance with recently published financial statements the book value per share of ford motor company is about 7. Its book value per share for the quarter that ended in mar. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. 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. Ford motor f book value per share trading economics. Find the latest price book value for ford motor company f.
An accounting term that measures the intrinsic value of a single share of a companys stock. It is calculated by the company as shareholders equity book value divided by the number of shares outstanding. How can a stock have a negative book value per share. Jan 30, 2018 book value per share bvps is a measure of value of a companys common share based on book value of the shareholders equity of the company. Anyone using this measure should be aware of two issues, which are. 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.
Ps ratio 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. Book value per share or net asset value per share is a measure of shareholders equity determined on a pershare basis. The ratio of stockholder equity to the average number of common shares. The current price to book ratio for ford motor as of may 11, 2020 is 0. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the. In depth view into ford motor book value per share including historical data from 1972, charts, stats and industry comps. It relates the market price of a stock to its book value.
This indicator is about the same for the average which is currently at 0. Book value per share of common stock explanation, formula. The book value is essentially the tangible accounting value of a firm. This interpretation is simplistic and deeper analysis is recommended. Book value per share equals total assets minus total liabilities divided by total outstanding shares. Book value per share calculator for common stock finance. Book value per share is a widely used stock evaluation measure. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. Ford motor f book value per share actual data and historical chart was last updated on may of 2020 according to the latest annual and quarterly financial. Gear up for a return to productivity with ford 05205. Treasury stock 2,000 common shares at cost 20,000 total.
The book value per share is the amount of the assets that will go to common equity in the event of liquidation. Ford book value per share fundamental analysis lookup allows you to check this and other indicators for ford motor company or any other equity instrument. But value investors tend to find book value a good starting point to investigating a company, especially if the pershare stock price crosses below that companys book value. Although the book value of equity per share is a factor that can be used by the investors to determine the value of stock, it presents only a limited value of the firms situation. Book value per share of common stock business forms.
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