Quick Answer: What Is Book Value Per Share Used For?

Is book value per share the same as price per share?

The book value of a company is the difference between that company’s total assets and total liabilities, and not its share price in the market..

What is Apple Book value per share?

3.85Balance SheetTotal Cash (mrq)90.94BTotal Debt (mrq)122.28BTotal Debt/Equity (mrq)187.14Current Ratio (mrq)1.36Book Value Per Share (mrq)3.851 more row

How do you determine book value?

The book value of a company is equal to its total assets minus its total liabilities. The total assets and total liabilities are on the company’s balance sheet in annual and quarterly reports.

What if book value is more than share price?

If the book value of a company is more than the market value, it could mean that public interest or confidence in the company or its industry might not be as high. If the market value is higher than the book value, the public may expect the company or industry to take off.

What is book value of assets?

Book value is the accounting value of the company’s assets less all claims senior to common equity (such as the company’s liabilities). The term book value derives from the accounting practice of recording asset value at the original historical cost in the books.

What is a good book value per share?

The price-to-book (P/B) ratio has been favored by value investors for decades and is widely used by market analysts. Traditionally, any value under 1.0 is considered a good P/B value, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value under 3.0.

Is a higher book value better?

The book value of equity per share (BVPS) metric can be used by investors to gauge whether a stock price is undervalued by comparing it to the firm’s market value per share. If a company’s BVPS is higher than its market value per share—its current stock price—then the stock is considered undervalued.

Is equity the same as book value?

The equity value of a company is not the same as its book value. It is calculated by multiplying a company’s share price by its number of shares outstanding, whereas book value or shareholders’ equity is simply the difference between a company’s assets and liabilities. … Book value can be positive, negative, or zero.

What is Apple’s PE ratio?

PE Ratio Range, Past 5 YearsMinimum9.917Jan 27 2016Maximum40.82Sep 01 2020Average18.65

Who has the most shares in Apple?

Top 10 Owners of Apple IncStockholderStakeShares ownedThe Vanguard Group, Inc.7.09%1,205,099,413Berkshire Hathaway, Inc. (Investm…5.55%944,295,554BlackRock Fund Advisors4.28%727,303,861SSgA Funds Management, Inc.3.96%672,444,8366 more rows

What is Apple’s current PE ratio?

40.48As of today (2020-12-26), Apple’s share price is $131.970000. Apple’s Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2020 was $3.26. Therefore, Apple’s PE Ratio for today is 40.48.

Why is book value per share important?

Book value is considered important in terms of valuation because it represents a fair and accurate picture of a company’s worth. … because it can enable them to find bargain deals on stocks, especially if they suspect that a company is undervalued and/or is poised to grow, and the stock is going to rise in price.