The formulas and examples for calculating book value per share with and without preferred stock are given below. Pb ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities. Also defined as a firms next asset value, book value per share is. The term book value is a companys assets minus its liabilities and is sometimes referred to as stockholders equity, owners equity, shareholders equity, or simply equity. In trading on wednesday, shares of valero energy corp. Pricebook a financial ratio used to compare a companys current market price to its book value. Latest closing price divided by the earnings per share based on the trailing 12 months. May 22, 2019 if the market value per share is lower than the book value per share, then the stock price may be undervalued. Fundamental analysis data for valero energy corp vlo, including priceearnings ratios and earnings per share, at ally invest. Valero energy vlo earnings report, financial results. Pricecash flow latest closing price of the stock divided by the last twelve months revenuecash flow per share.
View book value per share for vlo access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. Therefore, it makes sense to use book value per share as a measure of the value of the company to the shareholders. Oct 20, 2018 book value per share is a good measure to value bank stocks. 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. Depreciation is the reduction of an items value over time. Find out all the key statistics for valero energy corporation vlo, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Mostly, the book value is calculated for common stock only.
Theoretically, the company can sell all its assets and pay off all its debt and liabilities. Book value per share is a widely used stock evaluation measure. One way to look at book value per share is to consider what will happen if the company ceases all operations today. By dividing book value by the total number of shares outstanding, you can find book value per share. Book value is a useful tool for evaluating the market value per share. 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. Book value per common share or, simply book value per share bvps is a method to calculate the pershare book value of a company based on common shareholders equity in the company. How do i interpret pricebook and book value per share on. Valero energy corporation vlo nyse nasdaq real time price.
Valero energys book value per share for the quarter that ended in dec. Simply stated, book value per share defines the accounting value i. Strictly speaking, the higher the book value, the more the share is worth. The current price to book ratio for valero energy as of april 24, 2020 is 0. Historical price to book ratio values for valero energy vlo over the last 10 years. He is asked to calculate the book value per share of a stock and check if the stock trades at a fair value. Book value per share definition the book value per share is the value each share would be worth if the company were to be liquidated, all the bills paid, and the assets distributed. The company has grown its dividend for the last 9 consecutive years and is increasing its dividend by an average of 11. If the company shares are priced much higher than the book value per share, than the stock price might be too high for purchase. Nyse composite index mini value new methodology 1,090. It is the amount that shareholders would receive if the company dissolves, realizes cash equal to the. 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. Find the latest book value per share for amazoncom inc amzn. Vlo research and analysis for valero energy corporation.
In depth view into valero energy book value per share explanation, calculation, historical data and more. 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. It is calculated by the company as shareholders equity book value divided by the number of shares outstanding. Valero energy price to book ratio 20062019 vlo macrotrends. Get all the key statistics for valero energy corporation vlo, including valuation measures, fiscal year financial statistics, trading records, share statistics and more. Vlo crossed below their last reported book value defined as common shareholder equity per. Oct 10, 2012 in trading on wednesday, shares of valero energy corp. Book value per share of common stock explanation, formula. In this scenario, the socalled priceto book pb ratio is applied with a banks stock price compared to equity book value per share.
In other words, the value of all shares divided by the number of shares issued. What remains is the equity that is distributable to its shareholders. 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 the value each share would be worth if the company were to be liquidated, all the bills paid, and the assets distributed. Book value per share compares the amount of stockholders equity to the number of shares outstanding. Calculating earnings per share gives investors an estimate of what the company should be worth. Find out all the key statistics for marathon oil corporation mro, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. The presence of preferred stock in the total stockholders equity, however, has a significant impact on the calculation. Utilities and financials must have the last two ratings exceed 100% instead of the first three.
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. Book value of equity per share bvps is a ratio that divides common equity value by the number of common stock shares outstanding. This along with an increase in the cost of goods sold expense has contributed to a reduction in net income from 3. Valero energy corporation common stock vlo dividend. Vlo s next quarterly dividend payment will be made to shareholders of record on wednesday, june 3. Book value per share financial definition of book value. If the market value per share is lower than the book value per share, then the stock price may be undervalued. The book value per share is the amount of the assets that will go to common equity in the event of liquidation. A defensive graham grade requires that all ratings except the last four be 100% or more. Is it better to buy a company with a lower book value. Dec 05, 2012 in trading on wednesday, shares of valero energy corp. A value investing assessment for valero energy corp vlo using benjamin grahams 17rule framework that warren buffett recommends. During the past 12 months, valero energys average book value per share growth rate was 2. The pricetobook ratio measures a companys market price in relation to.
Valero energy corporation vlo stock price, quote, history. Book value per share financial definition of book value per share. So higher book value means the shares have more liquidation value. Book valueshare the per share value of a company based on its equity available to common shareholders for the trailing 12 months. Latest closing price divided by the earningspershare based on the trailing 12 months.
Price to book value is a valuation ratio that is measured by stock price book value per share. Find the latest price book value for valero energy corporation vlo. During the past 3 years, the average book value per share growth rate was 6. Book value per share is the gaap number number of shares outstanding. What is book value per share and how can it help you in.
Latest closing price divided by the last 12 months revenuecash flow per share. Price book a financial ratio used to compare a companys current market price to its book value. During the past years, the highest pb ratio of valero energy was 2. Its book value per share for the quarter that ended in jun. Priceearnings ratio is a good tool for comparing the value of competing companies. Valero energy corporation common stock vlo dividend history. Book value share the per share value of a company based on its equity available to common shareholders for the trailing 12 months. Although the book value of equity per share is a factor that can be used by the investors to determine the value of stock, it presents only a limited value of the firms situation. Thus, this measure is a possible indicator of the value of a companys stock. Vlos next quarterly dividend payment will be made to shareholders of record on wednesday, june 3. 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. Why these 3 oil refinery stocks jumped more than 30% in. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. 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.
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