The market to book ratio is calculated by dividing the current closing price of the stock by the most current quarters book value per share. The book value of equity represents the equity of shareholders from a balance sheet perspective less the preferred stock. One of the greatest truths in business came from red skelton, a comedian whose wisdom rings true even today. If you choose to calculate the ratio the first way, the companys market capitalization is divided by the companys total book value from its balance sheet. During the past 3 years, the average book value per share growth rate was 7. It has a priceearnings ratio greater than 37 and a pricebook value of 8. Indepth view of key statistics and finances for costco wholesale corporation cost on msn money. The market price per share is simply the current stock price that the company is being traded at on the open market.
Earnings for costco wholesale are expected to grow by 6. Pb ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. Costco wholesale corporation common stock cost stock. Price book value is a widely used stock evaluation measure. Costco wholesale cost earnings report, financial results. Calculate book value per share from the following stockholders equity section of a company. Thus, this measure is a possible indicator of the value of a companys stock. Depreciation is the reduction of an items value over time. How do i interpret pricebook and book value per share on. Find out all the key statistics for costco wholesale corporation cost, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Costco wholesale corporation cost valuation measures. O costco wholesale corporation key metrics reuters.
Tangible book value per share represents tangible book value divided by total common shares outstanding. Cost stock costco wholesale stock price today markets insider. Divide the market value per share by the book value per share to calculate market to book ratio. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. 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.
Book value per share of common stock explanation, formula. If the market value per share is lower than the book value per share, then the stock price may be undervalued. 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 book value per share is considered to be the total equity for common stockholders which can be found on a companys balance sheet. Book value per share compares the amount of stockholders equity to the number of shares outstanding.
Find the latest book value per share for costco wholesale corporation cost costco wholesale corporation cost book value per. Costco wholesale corporation cost book value per share. Costco wholesale cost book value per share actual data and historical chart was last updated on may of 2020 according to the latest annual and. He shared a triangle with the words price, quality, and speed and said pick any two. Find the latest book value per share for costco wholesale corporation cost. But, if you choose to calculate the ratio the second way i. 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 share after all debts are paid accordingly. Costco wholesale cost book value per share actual data and historical chart was last updated on april of 2020 according to the latest annual and quarterly financial statements. Book value per share can be defined as the amount of equity available to. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. In depth view into cost book value per share explanation, calculation.
During the past 3 years, the average book value per share growth rate was 6. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the. Tangible book value per share costco wholesale corporation. Price to book ratio market to book value pb formula m. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the book value of its assets and pays liabilities at their book value. The book value per share is a little more complicated. Aug 17, 2019 the book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Apr 15, 2020 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. Costco book value per share 20062020 cost macrotrends. About costco wholesale corporation 999 lake drive, issaquah, washington, 98027, united states of america 42538100 costco wholesale corporation and its subsidiaries costco or the company began. The priceto book ratio formula is calculated by dividing the market price per share by book value per share. Book value per share can be defined as the amount of equity available to shareholders expressed on a per common share basis. Historical price to book ratio values for costco cost over the last 10 years. Mostly, the book value is calculated for common stock only.
Find the latest price book value for costco wholesale corporation cost. Costco wholesales tangible book value per share for the quarter that ended in feb. Jan 30, 2018 book value per share bvps is a measure of value of a companys common share based on book value of the shareholders equity of the company. The book value is essentially the tangible accounting value of a firm. During the past 12 months, costco wholesales average book value per share growth rate was 18. In other words, the value of all shares divided by the number of shares issued. Find out all the key statistics for costco wholesale corporation cost. May 22, 2019 book value per share compares the amount of stockholders equity to the number of shares outstanding. Should the company decide to dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are. Previous next 5 4 3 2 1 overall beat the market rank 2. In accordance with recently published financial statements the book value per share of costco wholesale corporation is about 30.
Cost costco wholesale corporation common stock nasdaq. Market to book ratio price to book formula, examples. Book value per share financial definition of book value. Zacks rank stockrating system returns are computed monthly based on the beginning of the month and end of the month zacks rank stock prices. These returns cover a period from january 1, 1988 through july 1, 2019. Costco wholesales book value per share for the quarter that ended in may. The amount of equity available to shareholders expressed on a per common share basis. In depth view into costco wholesale book value per share including historical data from 1982, charts, stats and industry comps.
Book your hawaii vacation in march at any of these featured costco recommended hotels and receive additional savings and values. Use of price to book value formula the price to book value formula can be used by investors to show how the market perceives the value of a particular stock to be. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. The book value per share is a market value ratio that weighs stockholders equity against shares outstanding. Book value of an asset refers to the value of an asset when depreciation is accounted for. Chapter 2 introduction to financial statement analysis. It indicates the level of safety associated with each common share after removing the effects of liabilities. Price to book value is a valuation ratio that is measured by stock price book value per share. Cost stock costco wholesale stock price today markets. During the past 5 years, the average book value per share growth rate was 4. Book value per share financial definition of book value per share. We first subtract the total liabilities from the total assets. Cost stock price, news, historical charts, analyst ratings and financial information from wsj.
Book value per share bvps is a measure of value of a companys common share based on book value of the shareholders equity of the company. Book value per share is a widely used stock evaluation measure. The pe ratio tells analyst how much an investor in common stock pays per dollar of current earnings. The current price to book ratio for costco as of may 08, 2020 is 7. Book value per share is the gaap number number of shares outstanding.
Total shareholders equity common shares outstanding. Current and historical book value per share for costco cost from 2006 to 2020. Three years later, in early 2015, ge had a book value of equity. Costco wholesales book value per share for the quarter that ended in feb. The investor relations website contains information about costco wholesale corporations business for stockholders, potential investors, and financial analysts. Costco stock is a safe harbor from the coronavirus. This is the financialssite for the company costco wholesale on markets insider. Ycharts book value of equity is the equivalent of total assets less total liabilities and preferred equity.
Costco 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. Carter mcbride started writing in 2007 with cmbas ip section. Costco wholesale corporation cost nasdaqgs nasdaqgs real time price. Book value is the net asset value of the company according to standard accounting practice gaap, audited. The price to book value formula can be used by investors to show how the market perceives the value of a particular stock to be.
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