This was a 1234 for split, meaning for each shares of shld owned presplit, the shareholder now owned 1234 shares. Its book value per share for the quarter that ended in oct. He is asked to calculate the book value per share of a stock and check if the stock trades at a fair value. In accordance with recently published financial statements the book value per share of sears holdings corporation is about 10. 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. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Price to book value is a valuation ratio that is measured by stock price book value per share.
The price to book pb ratio has been favored by value investors for decades and is widely used by market analysts. 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. Unlike other psu banks, the market share of the bank rose between 200607. Growth rate is how much a companys equity is growing over the year. May 22, 2019 book value per share compares the amount of stockholders equity to the number of shares outstanding. It is because preferred stockholders are ranked higher than common stockholders during. Shell midstream partners book value per share shlx. Pricecash flow latest closing price of the stock divided by the last twelve months revenuecash flow per share. Book value per share financial definition of book value per share.
The price to book ratio or pb is calculated as market capitalization divided by its book value. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. Shld shld has 3 splits in our shld split history database. Get the latest sears stock price and detailed information including shld news, historical charts and realtime prices. Mostly, the book value is calculated for common stock only. Here we are talking about book value per share and not book value hence tracking book value per share growth like eps growth, is a very reliable indicator for predicting future performance of a stocks price. Book value of an asset refers to the value of an asset when depreciation is accounted for. In other words, the value of all shares divided by the. While book value per share is a good way to evaluate a stock, its more of an accountingbased tool and doesnt necessarily reflect the true market value of a publicly traded company.
How do i interpret pricebook and book value per share on. Shld a complete ishares digital security ucits etf exchange traded fund overview by marketwatch. How to figure the book value of bank stock finance zacks. In case the company does encounter such an event, all assets are liquidated in. Financial information and research on sears holdings corp.
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 pricetobook ratio measures a companys market price in relation to. If the firms bvps increases, the stock should be perceived as more. Shld stock sears stock price today markets insider. 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. While book value per share is a good way to evaluate a stock, its more of an accountingbased tool and doesnt necessarily reflect the true market value of a publicly traded company companies. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. Book value per share tells investors what a banks, or any stocks, book value is on a pershare basis. Book value per share is the gaap number number of shares outstanding. Calculating earnings per share gives investors an estimate of what the company should be worth. Book value per share is a widely used stock evaluation measure. Futures prices are delayed at least 10 minutes as per exchange requirements.
The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Theoretically, the company can sell all its assets and pay off all its debt and liabilities. What does book value per share explain about the business. To arrive at this number, subtract liabilities from assets. Generally, the market price of shares, grow at a similar rate as its book value per share. Book value per share compares the amount of stockholders equity to the number of shares outstanding. Sears holdings corporation shldq book value per share. Should the company dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets. Book valueshare the per share value of a company based on its equity available to common shareholders for the trailing 12 months. View book value per share for shlx access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. Sears holdings book value per share historical data all numbers are in millions except for per share data and ratio. Price book a financial ratio used to compare a companys current market price to its book value.
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. Strictly speaking, the higher the book value, the more the share is worth. 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. Trading economics provides data for 20 million economic indicators from 196 countries including actual values, consensus figures, forecasts, historical time series and news. A popular ratio that is used to compare market and book values is the pricetobook pb ratio, which is calculated as the price per share divided by the book value per share. Book value per share of common stock explanation, formula. Its book value per share for the quarter that ended in. Price book value is a widely used stock evaluation measure. You should be including all types of assets available.
It is calculated by the company as shareholders equity book value divided by the number of shares outstanding. The simplest explanation i can give is that it tells potential investors how much their shares would be worth in the event the company in question goes out of business. One way to look at book value per share is to consider what will happen if the company ceases all operations today. In comparison with the 20022008 findings, the 20012010 period produced a significantly lower p value, which indicated a weaker correlation. Shld released its earnings results on thursday, may, 31st. The secondlargest public sector bank has a welldiversified book with 32% exposure to overseas markets. The formulas and examples for calculating book value per share with and without preferred stock are given below. Book value share the per share value of a company based on its equity available to common shareholders for the trailing 12 months. What is book value per share and how can it help you in investing.
Latest closing price divided by the last 12 months revenuecash flow per share. Book value per share bvps is the minimum cash value of a company and its equity. So higher book value means the shares have more liquidation value. Latest closing price divided by the earnings per share based on the trailing 12 months. Shld ishares digital security ucits etf overview marketwatch. Dec 29, 2015 the simplest explanation i can give is that it tells potential investors how much their shares would be worth in the event the company in question goes out of business.
If a pb ratio is less than one, the shares are selling for less than. Sears holdings probability of bankruptcy vs book value per. A simple calculation dividing the companys current stock price by its stated book value per share gives you the pb ratio. The company is not a dead company and it is growing. A popular ratio that is used to compare market and book values is the price to book pb ratio, which is calculated as the price per share divided by the book value per share. Priceearnings ratio is a good tool for comparing the value of competing companies. What remains is the equity that is distributable to its shareholders.
Find the latest book value per share for sears holdings corporation shldq. Find out all the key statistics for sears holdings corp shldq, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value per common share bvps definition investopedia. Is it better to buy a company with a lower book value. Book value is a useful tool for evaluating the market value per share. A company can also increase the book value per share by using the generated profits to buy more assets or reduce liabilities. 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. Book value per share financial ratio the balance small business. Please click growth rate calculation example gurufocus to see how gurufocus calculates walmart stores inc wmts revenue growth rate. The first split for shld took place on april 07, 2014. Pricebook a financial ratio used to compare a companys current market price to its book value.
This is a financial measure of a per share assessment of the minimum value of a companys equity. Find out all the key statistics for 4155330 shld, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value per share bvps overview, formula, example. If the market value per share is lower than the book value per share, then the stock price may be undervalued. Depreciation is the reduction of an items value over time. Book value per share compares the amount of stockholders equity to.
What is book value per share and how can it help you in. Book value per share formula with calculator financial formulas. Anyone committed to making money in the stock market should know the meaning of the term book value per share. View the latest etf prices and news for better etf investing. Book value per share financial definition of book value. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. For example, a share position presplit, became a 1234 share position following the split. You can apply the same method to get the book value growth rate using book value per share data. In comparison with the 20022008 findings, the 20012010 period produced a significantly lower pvalue, which indicated a weaker correlation. Book value per share formula, calculator and example. The book value per share is the amount of the assets that will go to common equity in the event of liquidation. Change value during the period between open outcry settle and the. Book value is the net asset value of the company according to standard accounting practice gaap, audited.
Thus, this measure is a possible indicator of the value of a companys stock. Book value per share bvps takes the ratio of a firms common equity. Latest closing price divided by the earningspershare based on the trailing 12 months. 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.
A financial ratio used to compare a companys current market price to its book value. In other words, the value of all shares divided by the number of shares issued. Book value per share bvps is a measure of value of a companys. Stocks trading below their book value can give decent. Sears holdings sales per share is expected to significantly decrease based on the last few years of reporting.