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