Apr 20, 2020 a book to market ratio greater than one indicates that the company may be undervalued and many investors will take this as a sign that it is a good investment. The booktomarket ratio is used to find the value of a company by comparing the book value of a firm to its market value. Dec 31, 2019 compared with the other megacap tech stocks, apple s pe ratio still ranks among the lowest. High priceearnings and a low markettobook ratio finance. Apple pe ratio is at historic high following an explosive year. Apple inc aapl fundamental analysis, stock research. Book value is the accounting value of assets minus liabilities. The company current price to book value is estimated at about 12. Pricesales ttm pricebook mrq enterprise valuerevenue 3. During the past years, the highest pb ratio of apple was 15. Aapl, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. That is, the btm is a comparison of a companys net asset value per share to its share price. Price to book pb ratio is used to relate a company book value to its current market price. Book value is defined as total assets minus liabilities, preferred.
The iphone is expected to account for 66% of the companys total revenue in 2015. As of today 20200504, apples share price is usd 290. Looking back at the last five years, apple s book value market cap peaked in september 2016 at 0. The price to book ratio or pb is calculated as market capitalization divided by its book value. The price to book, or pb ratio, is calculated by dividing a companys stock price by its book value per share, which is defined as its total assets minus any liabilities. Applying this formula, apples book market ratio is calculated below. Apple s book value market cap hit its fiveyear low in september 2019 of 0. The company is currently trading at a pricetobook value or pbv of 5. A look at apples fundamental ratios market realist. Apples latest twelve months book value market cap is 0. May 30, 2012 one of these new arguments is that apple s price to book ratio is too high.
Market with apple books search by title or author name to create links, badges, and text lockups for any book or audiobook available on apple books. The market capitalization companys value is its share price multiplied by the number of outstanding shares. The price to book ratio pb ratio is a financial ratio used to compare a companys book value to its current market price. American market, while nokia is having a larger share in eu. The lower the price to book ratio, the better the value. Now, collect the number of outstanding shares of the. Price to book ratio market to book value pb formula m. Apple price to book analysis price to book pb ratio is used to relate a company book value to its current market price. Bankers, apple possible casualties in irish politics shock. Market to book ratio formula, calculation, example. Firstly, collect the current market value of the stock which is easily available from the stock market. Pbv ratio, the pbv ratio is interpreted as an indicator of market judgment about the. Apple s operated at median book value market cap of 0.
Mar 20, 2020 the price to book pb ratio has been favored by value investors for decades and is widely used by market analysts. If youre a member of the affiliate program, enter your affiliate token to track the transactions you generate with your marketing. Normally, a companys share value will be greater than its book value because the share price takes into account investors estimate of the profitability of the company how well it uses its assets and includes best guesses of the future value of the company. It is important to understand the market to book value ratio when it is less than 1 and greater than 1. Current ratio can be defined as a liquidity ratio that measures a companys ability to pay shortterm obligations. The book value per share is a little more complicated. This video demonstrates how to calculate a firms market to book ratio and illustrates how the market to book ratio can be useful in comparing two. Market to book ratio formula calculator excel template. Price to book value is a valuation ratio that is measured by stock price book value per share. Computer hardware industrys price to sales ratio is at 2. Market to book value ratio 20 1 00 000 1,500,000 2,000,0001,500,000 1. A ratio of a publiclytraded companys book value to its market value. Marketing analysis of apple inc the writepass journal. The current price to book ratio for apple as of may 04, 2020 is 16.
Due to the increased adoption of smartphones, industry wide units sales are expected to increase at 8. It is calculated by dividing the current closing price of the stock by the latest quarters book value per share. One of these new arguments is that apples price to book ratio is too high. It is calculated by dividing the current closing price of. This is a useful tool to help determine how the market prices a company relative to its actual worth. The pricetobook ratio pb ratio is a ratio used to compare a stocks market value to its book value. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Apples book value per share for the quarter that ended in dec. Historical price to book ratio values for apple aapl over the last 10 years. Essentially, the market to book ratio relates what the investors believe a firm is worth to what the firms accountants say it is worth according to accepted accounting principles.
The mature but growing smartphone market will continue to be apples main source of revenue. Fundamental analysis data for apple inc aapl, including priceearnings ratios and earnings per share, at ally invest. Jul 31, 2019 market to book financial ratio market value. Apple current ratio for the three months ending december 31, 2019 was 1. We first subtract the total liabilities from the total assets. The current price to book ratio for apple as of may 01, 2020 is 16. Apple inc s current key valuation ratios, pe, pb, pcf, ps, compare to computer hardware industry and technology sector. Market to book financial ratio the balance small business. High priceearnings and a low market to book ratio by.
Market to book financial definition of market to book. The market value is the current stock price of all outstanding shares i. The ratio of market capitalization to book value per share for apple is about 49,194,232,400 apple is number one stock in market capitalization category among related companies. The formula calculation is done by using the following steps. Now, collect the number of outstanding shares of the company and determine the market capitalization by multiplying the current stock price and the number of outstanding shares. Compared with the other megacap tech stocks, apples pe ratio still ranks among the lowest. Apple pe ratio is at historic high following an explosive. Apple price to book value is considerably stable at the moment as compared to the last year. Market to book ratio price to book formula, examples. Market to book ratio formula, examples calculations. The book value is essentially the tangible accounting value of a firm. Market capitalization of consumer electronics industry is presently estimated at about 1. View aapl business summary and other industry information.
The book to market ratio is used to find the value of a company by comparing the book value of a firm to its market value. Apple price to book ratio 20062020 aapl macrotrends. Free cash flow per share is projected to rize to 22. Some companies even have negative equity, so the pricetobook ratio cannot be applied to them. Using the pricetobook ratio to analyze stocks the motley fool. As of today 20200504, apple s share price is usd 290. Apple market capitalization vs book value per share aapl.
Apple s book value per share for the quarter that ended in dec. 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. Ultraportable internet devices market size, share 2020 industry. Its for traditionally published authors who want to take control of their future, and for selfpublished authors who want to jumpstart a. The market price per share is simply the current stock price that the company is being traded at on the open market. A ratio greater than one indicates an undervalued company, while a ratio less than one means a company is overvalued. A ratio comparing the market price of a firms common stock with the stocks book value per share. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. China is apples fastestgrowing market china is behind europe and the americas, but is growing at a much more rapid pace. Its book value per share for the quarter that ended in dec. However, due to the increasing number of players in this market, apples market share has decreased from 61. By dividing book value by the total number of shares outstanding, you can find book value per share. The market to book ratio also called the price to book ratio, is a financial valuation metric used to evaluate a companys current market value relative to its book value. A high pb ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets.