This is a financial measure of a per share assessment of the minimum value of a companys equity. This formula is also known as book value per common share or book value of equity per share. Book value share the per share value of a company based on its equity available to common shareholders for the trailing 12 months. Depreciation is the reduction of an items value over time.
Learn easy and simplest method to calculate book value of a stock or share in stock market this video is in english and hindi version of this video also available. It allows api clients to download millions of rows of historical data, to query our realtime economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Book value per share is the gaap number number of shares outstanding. Fundamental analysis data for verizon communications inc vz, including priceearnings ratios and earnings per share, at ally invest. Pricecash flow latest closing price of the stock divided by the last twelve months revenuecash flow per share. Thus, this measure is a possible indicator of the value of a companys stock. In depth view into verizon communications book value per share explanation, calculation, historical data and more. How do i interpret pricebook and book value per share on.
Vz stock price, news, historical charts, analyst ratings and financial information from wsj. Date, stock price, book value per share, price to book ratio. The price to earnings pe ratio, a key valuation measure, is calculated by dividing the stocks most recent closing price by the sum of the diluted earnings per share from continuing operations. In the case that the firm dissolves, it is the amount the shareholders will receive. The trading economics application programming interface api provides direct access to our data. You may ask why were deducting the preferred stock and average outstanding common stock. Vz stock is currently testing new highs, after rising approximately 15% in.
About book value per share book value, per share, reveals the current state of the company and ignores future growth potential. Book value per share represents equity of the firm on per share basis. Book value of an asset refers to the value of an asset when depreciation is accounted for. Ps ratio an rationale for the ps ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as eps or book value. Often, book value is expressed on a per share basis, dividing the total shareholder equity by the number of shares of stock outstanding. What is book value per share and how can it help you in. In other words, the value of all shares divided by the number of shares issued. Latest closing price divided by the last 12 months revenuecash flow per share.
Verizon communications price to book value vz ycharts. Verizon book value per share analysis book value per share bs is can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. Is it better to buy a company with a lower book value. When the purchase price per share is less than book value per share, then the denominator of book value per share decreases by a greater percentage than does the numerator, and book value per share increases. Book value per share of common stock explanation, formula. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. Price cash flow latest closing price of the stock divided by the last twelve months revenuecash flow per share. Price to book value is a valuation ratio that is measured by stock price book value per share. View book value per share for vz access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. This means if the company dissolves, the shareholders will receive an amount per share as per book value per share.
The equity of the company is important, but not nearly as important as the growth rate of the equity. What investors need to know verizon communications has provided a potent combination of share price gains and dividend payments since the mid1980s, and its outlook looks. Vz stock verizon stock price today markets insider. The market price per share of stockusually termed simply share price is the dollar amount that investors are willing to pay for one share of a companys stock. Book value per share is a reliable barometer of a stocks potential value. Book value per share can separate the wheat from the chaff on a stock but it needs to be applied correctly. Based on latest financial disclosure the price to book indicator of verizon.
During the past 3 years, the average book value per share growth rate was 4. 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. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Vz, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. It does not include warrants, preferred shares, retained earnings, or treasury stock. Verizon book value per share 20062019 vz macrotrends. The formula for price to book value is the stock price per share divided by the book value per share. Ford motor cos book value per share for the quarter that ended in dec. The formulas and examples for calculating book value per share with and without preferred stock are given below. Market cap usd book value per share free float in % cash flow per share number of shares in mm 0. The book value per share bvps is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding.
The term book value is a companys assets minus its liabilities and is som. Book value per share is a widely used stock evaluation measure. So higher book value means the shares have more liquidation value. Mostly, the book value is calculated for common stock only. Jun 29, 2009 book value is the net asset value of the company according to standard accounting practice gaap, audited. A financial ratio used to compare a companys current market price to its book value. The assets may be carried on the balance sheets at the original cost minus depreciation. May 22, 2019 book value per share compares the amount of stockholders equity to the number of shares outstanding. View realtime stock prices and stock quotes for a full financial overview.
Get the latest verizon stock price and detailed information including vz news, historical charts and realtime prices. During the past 5 years, the average book value per share growth rate was 6. 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 per share bvps overview, formula, example. When compared to the current market value per share, the book value per share can provide information on how a companys stock is valued. The current price to book ratio for verizon as of april 10, 2020 is 3. If the market value per share is lower than the book value per share, then the stock price may be undervalued.
Find out all the key statistics for verizon communications inc. Latest closing price divided by the earnings per share based on the trailing 12 months. It has no specific relation to the value of the companys assets, such as book value per share does, which is based on the information from a companys balance sheet. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Verizon price to book ratio 20062019 vz macrotrends. Get all the key statistics for verizon communications inc. The above book value per share formula has two parts. The price to book ratio formula, sometimes referred to as the market to book ratio, is used to compare a companys net assets available to common shareholders relative to the sale price of its stock. To make this easier, convert total book value to book value per share.
Usually a companys book value and tangible book per share may not reflect its true value. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. It can be useful to compare the market price of shares to the book value. Apr 17, 2019 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. Price book a financial ratio used to compare a companys current market price to its book value. It indicates the level of safety associated with each common share after removing the effects of liabilities. The amount left over is called book value or equity. Its book value per share for the quarter that ended in dec. 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. Historical price to book ratio values for verizon vz over the last 10 years. For the purpose of analysis, the book value of equity is further divided by a total number of shares to make book value per share.
Vz, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value of equity meaning, formula, calculation. 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 financial definition of book value. The first part is to find out the equity available to the common stockholders. Book value per share, quasireorganization flashcards. The purchase of treasury stock at any price decreases total owners equity under the cost method because treasury stock is a contra oe account.
The book value is essentially the tangible accounting value of a firm. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. Book value per share bvps is a ratio used to compare a firms common shareholders equity to the number of shares outstanding. Latest closing price divided by the last 12 months of revenuesales per share. Vz stock quote, history, news and other vital information to help you with your stock trading and investing. This may underestimate the true economic values of the assets. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Book value per share formula how to calculate bvps. Jun 12, 2017 you use a companys latest balance sheet to come up with the book value of the equity, you look up the number of shares outstanding which is usually mentioned in the earnings per share. Book value per share compares the amount of stockholders equity to the number of shares outstanding. Current and historical book value per share for verizon vz from 2006 to 2019. The book value per share is the amount of the assets that will go to common equity in the event of liquidation.
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