Find the latest price book value for bank of america corporation bac skip to main content. The price to tangible book value ratio ptbv expresses share price as a proportion of the companys tangible book value reported on the companys balance sheet. Oct 27, 2019 the price to tangible book value ptbv is a valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the company s balance sheet. The next article in this series will be a conclusion showing the results of each strategy, and. Jul 19, 2019 lets start with the data as of 15 july 2019, tangible assets accounted for 20. Book value, tangible book value and dividends declared. Tangible book value is a rough estimate of what a company would be worth if it was liquidated. Oct 22, 2019 aurora cannabis stock will likely fall to tangible book value. Kinder morgan s tangible book value per share for the quarter that ended in dec. 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. In depth view into macys tangible book value quarterly including historical data from 1995, charts, stats and industry comps. In practice, companies report tangible book value per share, number of shares.
Aurora cannabis stock will likely fall 90% to tangible. Any security trading for less than its tangible book value is manna from heaven for value investors, thus underscoring the need and importance of book value per share. But plenty of wellknown companies, whose competitive edge rests on brands or patents, have much. Click the learn more link below to see how ycharts calculates price to tangible book value.
Dec 23, 2019 and yet, incredibly, a negativevalue fund, composed of the shares of companies with negative tangible book value, would have beaten the main u. The last time it had a sustained drop was right after the. Let s start with the data as of 15 july 2019, tangible assets accounted for 20. In graham s intelligent investor, he calculates a metric earning book value. The price to tangible book value ptbv is a valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the company s balance sheet.
The modern economy is ideabased and most corporate value lives completely off the books. Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much. Many value investors focus on tangible book value, which excludes goodwill and other. Tangible book value tbv is calculated by subtracting intangible assets from the companys book value. Bank book value is important, but also consider an institutions market value. When intangible assets and goodwill are excluded, the ratio is often specified to be price to tangible.
Worthless companies are decades big market winners. Zombie value is the tangible book value of the business per share. Kinder morgans tangible book value per share for the quarter that ended in dec. Stocks trading below their book value can give decent. What is book value per share and how can it help you in. Tangible book value is calculated by subtracting intangible assets intellectual property, patents, goodwill etc. Tangible book value is a company s net assets minus. Whats more, some companies like jnj have a positive price to book and a negative price to tangible book. With this in mind, i was wondering why some companies have such large discrepancies between the two. Us banks trading at lowest pricetoadjusted tangible book. Buttonwood why book value has lost its meaning finance. I would like to calculate the same ratio in modern times 19602015 but am having trouble finding this data. Buying low price to tangible book value stocks is still an ou.
The last time it had a sustained drop was right after the financial crisis in 2008. 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 intangible assets. The details are shown in the tables on the following page. Jun 23, 2011 3 banks trading below tangible book value and near 52week lows. Studies have shown, and our long record of outperformance has confirmed, that this universe of stocks substantially outperforms. Click here for a webinar on creating a template for pricetoadjusted tangible book value. But tangible book values had begun to bounce back last year. The significance of book value interpreting a stocks book value.
Using the pricetobook ratio to value bank stocks the. The last time it had a sustained drop was right after the financial crisis in. Stocks trading below their book value can give decent returns. Right now its trading on just over 12x, where its been since the start of the year. And yet, incredibly, a negativevalue fund, composed of the shares of companies with negative tangible book value, would have beaten the main.
Worthless companies are decades big market winners bloomberg. The price to tangible book value ptbv is a valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the companys balance sheet. Slideshow 10 stocks crossing below book value from market news video gnty. Several good stocks are trading below their book value. In other words, its how much all of the physical assets of a company are worth. Tangible book value, also known as net tangible equity, measures a firms net asset value excluding the intangible assets and goodwill.
Deep value investing is a strategy that targets outoffavor companies valued in the bottom decile of pricetotangible book value ratios. Looking at it that way, wells fargo is actually the most expensive of the four at 2. Aurora cannabis stock will likely fall 90% to tangible book value. Since the book value per share may not reflect the companys true value, some investors check the tangible book value to confirm their investment ideas. One of the tables also shows the growth in tangible book value per share, which we believe is a conservative measure of value. Some investors believe that tangible book value is a better gauge than book value because it excludes goodwill.
Price book value is a widely used stock evaluation measure. Since information technology exploded in the 1980 s, intangible asset value has been on a rapid rise. Aurora cannabis stock will likely fall to tangible book value. Btw, with leverage, there is no reason book value or especially tangible book value even has to be positive. Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will receive when the company liquidates.
Nevertheless, the increasing importance of intangibles should not diminish the relevance of tangible net worth. How to figure the book value of bank stock finance zacks. Lets start with the data as of 15 july 2019, tangible assets accounted for 20. What that means is weve figured out what this business would be worth if the business is dead and doesnt do anything in the future at all.