Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will receive when the company liquidates. There are metrics such as tangible book value, net current asset value. Total tangible equity is calculated as the total stockholders equity minus. How to find the right bargain stocks amid the market. Book value may include intangible items which may come from the companys past acquisitions. In depth view into ford motor tangible book value per share including historical data from 1972, charts, stats and industry comps. If that is the case, we calculate that pcbc will have almost 3. Tangible book value per share tbvps investing answers.
Find out all the key statistics for ford motor company f, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Ford motor company that still relies significantly on tangible assets to. Ford tangible asset value is expected to significantly increase based on the last few years of reporting. The pricebook ratio and the pricetangible book value are both 4. Price to book value is a valuation ratio that is measured by stock price book value per share. The current year enterprise value over ebit is expected to grow to 536. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Tangible book value per share tbvps equals a companys net tangible assets divided by its number of shares outstanding. F book value per share explanation usually a companys book value and tangible book per share may not reflect its true value. Find the latest price book value for ford motor company f ford motor company f price book value zacks. The pricetobook ratio is a useful metric for finding value but its not. The pricetobook pb ratio is widely favored by value investors for identifying lowpriced stocks with exceptional returns. Tangible book value per share is calculated as the total tangible equity divided by.
Price book value is a widely used stock evaluation measure. Over longer time periods, this ratio is a useful measure of companys depreciation policy and can be used for comparisons with competitors. Amgen amgn, another value pick, isnt getting much credit for its drug pipeline and earnings power. One of the big differences here is that exxons production has been falling over the past few years, with declines in 2018, 2017, and 2016.
Technically, pb can be calculated either including or excluding intangible assets and goodwill. The ratio is used to compare a stocks market valueprice to its. Ford appears to be of reasonable value relative to book value. The tangible book value is a measure of this concept. Price to tangible book value is a valuation ratio expressing the price of a security compared to its hard book value as reported in the balance. A tangible book value per share tbvps is a method of valuing a company on a pershare basis by measuring its equity after removing any. Ford needs a lot of tangible assets because its value is derived from tangible goods. As for the fixed assets like the building and the ground, those will probably have a. What does it mean if a company has a negative tangible book value. Whether youre drawn to the 2008 ford explorer for its trucklike towing and cargohauling capabilities or its minivanlike. The assets may be carried on the balance sheets at the original cost minus depreciation.
The difference between pricetotangiblebook and pricetobook ratio is that book value other than intangibles are used in the calculation. Supervalu eliminated, while ford and general electric are added. The book value is essentially the tangible accounting value of a firm. Tangible book value per share tbvps definition investopedia. Book value less intangibles is called tangible book. The price to tangible book value ptbv is a valuation ratio expressing the price of a security compared to its hard, or tangible, book value as reported in the companys balance sheet. Tangible book value per share is the pershare value of a companys equity after removing any intangible assets. Ford motor company, ones of americas oldest companies, uses artificial intelligence and machine learning in many ways from the supply chain to production to used car sales to selfdriving vehicles. A tangible book value per share tbvps is a method of valuing a company on a pershare basis by measuring its equity after removing any intangible assets. Ford motor cos tangible book value per share for the quarter that ended in dec.