The calculation can be performed in two ways, but the result should be the same each way. I am borrowing extracts from my previous posts to make this answer complete. The companys last reported book value was 6p per share. During the past 12 months, bp s average book value per share growth rate was 5.
Price book value is a widely used stock evaluation measure. I listed bp as a stock to buy as a substitute for the top dogs of. In depth view into bp book value per share explanation, calculation, historical data and. The company provides customers with fuel for transport, energy for heat and light, power for industry, and the petrochemicals products used to make everyday items such as paints, clothes and packaging. With increases in a companys estimated profitability, expected growth. Price to book value ratio pbv or pb ratio equitymaster. Buy or sell what is the true value of bp shares now. L, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. The book value per share is calculated using historical costs, but the market value per share is a forwardlooking metric that takes into account a companys earning power in the future. Right now the bp share price appears to represent solid value, as shown in the groups value rank of 69. How do i interpret pricebook and book value per share on.
Bp plc probability of bankruptcy analysis for stocks, probability of bankruptcy is the normalized value of zscore. Should you buy bp shares or premier oil in this oil market. Book value share the per share value of a company based on its equity available to. I have already explained few terms in my previous answers. Book value, per share, reveals the current state of the company and ignores future growth potential. Zacks rank stockrating system returns are computed monthly based on the beginning of the month and. Forcasts, revenue, earnings, analysts expectations, ratios for bp plc stock bp. Looking at bp s stockreport, we can see that the group has a.
L, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Book value is the net asset value of the company according to standard accounting practice gaap, audited. Book value per share is a widely used stock evaluation measure. Bp is one of the worlds leading oil and gas companies, proving customers with fuel for transportation, energy for heat and light, lubricants and petrochemicals site traffic information and cookies we use cookies and equivalent technologies to collect and analyse information on our sites performance and to enable the site to function. After recent declines, the stock is dealing at a price to book pb ratio of just 0.
Bp plc operates as an integrated oil and gas company. 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 is the gaap number number of shares outstanding. In a conference call this week, jpmorgan cazenove estimated that the shares are trading at 1. In this equation, book value per share is calculated as follows. Book value per share compares the amount of stockholders equity to the number of shares outstanding. Its book value per share for the quarter that ended in jun. Marathon oil will recover just fine and mro stock offers great value. Bp book value per share data by ycharts so focusing first on the pe, you can see that bp p.
The assets may be carried on the balance sheets at the original cost minus depreciation. The pbv ratio is the market price per share divided by the book value per share. Pricetobook ratio pb ratio definition investopedia. Book value per share can be defined as the amount of equity available to. To find book value, add up everything the company owns in. This may underestimate the true economic values of the assets. Price to book value is a valuation ratio that is measured by stock price book value per share. The pricetobook ratio, or pb ratio, is a financial ratio used to compare a companys current market price to its book value. 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. The upstream segment engages in the oil and natural. Whatever is left over is the book value of the company. During the past 3 years, the average book value per share growth rate was 2. Bp fundamental charts book value per share fundamental charts the style scores are a complementary set of indicators to use alongside the.
Fundamental analysis data for bp plc bp, including price earnings ratios and earnings per share, at ally invest. View book value per share for bp access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. We will walk through this formula and how to find the numbers to plug into the formula, and voila. 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 firms market value per share. To find book value, add up everything the company owns in terms of assets, then subtract everything the company owes, such as debts and other liabilities.
Bp, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. In the first way, the companys market capitalization can be divided by the companys total book value from its balance sheet. Book value per share is one the easiest accounting formulas out there that can help us determine the value of a bank or financial firms equity. During the past years, the highest pb ratio of bp was 1. Current and historical book value per share for bp bp from 2006 to 2019. Bp plc book value per share yearly trend continues to be very stable with very little volatility. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Bp s book value per share for the quarter that ended in dec. During the period from 2010 to 2020, bp plc book value per share quarterly data regression pattern had sample variance of 20. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding.
The price to book value ratio, or pbv ratio, compares the market and book value of the company. Get the latest bp stock price and detailed information including bp news, historical charts and realtime prices. 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. These returns cover a period from january 1, 1988 through july 1, 2019. The book value is essentially the tangible accounting value of a firm. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. The company explores for and produces oil and natural gas, refines, markets, and supplies petroleum products, generates solar energy, and. Part 1 earnings per share eps eps stands for earnings per share.
It sells of all its assets, and pays off all its debts. If the market value per share is lower than the book value per share, then the stock price may be undervalued. Bp plc book value per share fundamental analysis lookup allows you to check this and other indicators for bp plc or any other equity instrument. Ycharts book value of equity is the equivalent of total assets less total liabilities and preferred equity. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity, owners equity, shareholders equity, or. Bp book value per share explanation usually a companys book value and tangible book per share may not reflect its true value. Bp, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. Thus, this measure is a possible indicator of the value of a companys stock.
Price book a financial ratio used to compare a companys current market price to its book value. When a stock price is trading below its book value, it shows that investors have little confidence that the company is worth even as much as its assets. Bp plc book value per share from 2010 to 2020 bp macroaxis. For funds and etfs it is derived from a multifactor model developed by macroaxis. In other words, the value of all shares divided by the number of shares issued. The score is used to predict the probability of a firm or a fund experiencing financial distress within the. The second way, using pershare values, is to divide the companys. Book value share the per share value of a company based on its equity available to common shareholders for the trailing 12 months. Company profile for bp plc bp including business summary, key statistics, ratios, sector. Historical price to book ratio values for bp bp over the last 10 years. Book value of an asset refers to the value of an asset when depreciation is accounted for. Price cash flow latest closing price of the stock divided by the last twelve months revenuecash flow per share.