The priceto tangible book value ratio excludes the book value of a companys intellectual property and other intangible assets, such as patents and goodwill. Bank of america corp price tangible book value chart for bac. Tbv is frequently used to illustrate how much of a company is left after a bankruptcy filing. Price to tangible book value is how much a banks stock is trading for relative to the. Will bank of america stock dip below book value now. Most of the banks have been generating low to midteen returns on tangible book. As a result, price to tangible book value tbv became a driving metric for bank valuations and bank merger pricing. Book value less intangibles is called tangible book.
At present, bac stock is trading in line with its tangible book value, or net tangible equity which is defined as book value, less intangible assets. View and compare tangible, book,valu, bac on yahoo finance. Koyfin provides free tools to help investors research stocks and other asset classes through dashboards and charting. I think it depends by the kind of approach you are using. Price to book value ratio pbv or pb ratio equitymaster. On the other hand, the book security analysis, by graham and dodd at chapter. Find out all the key statistics for bank of america corporation bac, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Return on tangible equity can be defined as the amount of net income returned as a percentage of shareholders equity, after subtracting intangible assets. File with the county personal property return assessor on. Tangible book value per share is the pershare value of a companys equity after removing any intangible assets. I think a lot of people saw that even when earnings accretion is robust, that can change pretty quickly. 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.
Fundamental analysis data for bank of america corp bac, including priceearnings ratios and earnings per share, at ally invest. In an effort to streamline the banks and financials trading at or under book value, 247 wall st. Computed by deducting intangible assets, startup expenses, and deferred financing costs from the firms normal book value bv. Book value can refer to several ways to analyze a business, but when it comes to bank stocks, the book value pertains to the net asset value of the company. By dividing book value by the total number of shares outstanding, you can find book value. Hold or own any depreciable taxable tangible personal property on january 1 at 12. Dvn and banpu kalnin ventures bkv today announced an amendment to the existing terms of their barnett shale purchase and sale agreement. Book value may include intangible items which may come from the companys past acquisitions. With most of the larger banks having reported fourth quarter results, stifel nicolaus has come up with a list of banks that have grown their book value. This may underestimate the true economic values of the assets. Usually a companys book value and tangible book per share may not reflect its true value. Hence, bank of america corporations pricetobook ratio for the period was 1.
What is a good preferably free stock screener that. Price to tangible book value backtest fat pitch financials. Compare bac with other stocks bank of america price book ratio historical data. Its important to recall that book value was once called tangible book value, which more accurately describes what it purports to represent. Heres how investors should value bank of americas stock. Using the pricetobook ratio to value bank stocks the. 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. Devon energy announces amended barnett shale asset sale agreement. Tangible book value, also known as net tangible equity, measures a firms net asset value excluding the intangible assets and goodwill.
Price tangible book ratio stock screener with an ability to backtest price tangible book ratio stock screening strategy and setup trade alerts for price tangible book ratio signals. Backtest your price tangible book ratio trading strategy before going live. In depth view into bank of america tangible book value per share including historical data from 1973, charts, stats and industry comps. Tangible book value is a company s net assets minus goodwill and intangibles. As such, it represents what debtholders or investors would receive if the company liquidated its physical assets assuming that it could get book value for all of those assets. Tangible book value per share tbvps equals a companys net tangible assets divided by its number of shares outstanding. The results are similar to those for the pb ratio backtest the top quintile once again clearly outperformed the market by a significant margin. Price book value is a widely used stock evaluation measure. Bank of america return on tangible equity 20062020 bac.
Bank of america tangible book value per share bac ycharts. We can hope, dream, act, do, createrepeat, and then wait for the results to manifest. Cadence has traded at a discount to the industry median since may. Dictionary term of the day articles subjects businessdictionary business dictionary dictionary toggle navigation. Book value, tangible book value and dividends declared. For instance, if a company filed bankruptcy with five million in current assets, three million in gross property, plant.
To calculate the tangible book value per share, malcolm finds that the firms number of shares outstanding is 2,000,000 million. Tbv is frequently used to illustrate how much of a. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. The current price to book ratio for bank of america as of april 22, 2020 is 0. I hope you will ponder how these personally affect your life, and maybe you can then start to make some key shifts. Under the amended terms, devon has agreed to sell its barnett shale. How may one determine reasonable fair value estimates for banking stocks. The assets may be carried on the balance sheets at the original cost minus depreciation. America bac trade above tangible book, which is a hard measure of shareholder equity that excludes goodwill and other intangible assets. Its pricetoadjusted tangible book value fell to 45. It is referred to by many as the company s liquidation value. Explanation of tangible book value per common share terms and examples within business csimarket.
Theoretically, ptbv represents the amount of money that shareholders would receive for each share owned if the company were to liquidate its operations. Book value reveals how much the company is worth if it were liquidated and all assets were sold for cash. Our free stock screener lets you filter and screen for stocks based on price to tangible book value along with over 100 other criteria. Tangible book value tbv is calculated by subtracting intangible assets from the companys book value. In depth view into bank of america price to book value including historical data from 1973, charts, stats and industry comps. Find the latest price book value for bank of america corporation bac bank of america corporation bac price book value zacks. Historical price to book ratio values for bank of america bac over the last 10 years.
In fact, at times in the book value calculation may be included items such as intangible assets and goodwill. In depth view into bank of america price to tangible book value including historical data from 1973, charts, stats and industry comps. Tangible book value market cap free stock screener. The priceto book ratio pb ratio is a ratio used to compare a stocks market value to its book value. In other words, its how much all of the physical assets of a company are worth. What is the difference between price to book ratio and. Heres how investors should value bank of americas stock here are the two main ways to value bank stocks, and bank of america in particular. In depth view into bank of america priceto tangible book explanation, calculation, historical data and more. Nyq financials, including income statements, growth rates, balance sheets and cash flow information. A tangible asset is anything that has commercial or exchange value. To put that in context, jpmorgan is the most highly valued of the four, trades for just about 1.
The tangible book value number is equal to the companys total book value less than the value of any intangible assets. Find out how this ratio is calculated and how you can use it to evaluate a stock. How to figure the book value of bank stock finance zacks. Moreover, the average excess returns from 2001 to 2011 for the top quintile for price to tangible book value 5. Hence, bank of americas price to tangible book ratio of today is 1.