Tangible book value is a company s net assets minus goodwill and intangibles. Bank of america reports in three operating divisions i. But the following day, he wrote that bank of americas pricetotangiblebookvalue ratio of 1. Tangible book value per share is calculated as the total tangible equity divided by.
Big difference in those values that you really wouldnt see just by looking at the price. And while it might seem like the bac stock price almost by definition would be too cheap at 1x book, thats. Banks falling book value could invite activist investors. Will bank of america stock dip below book value now. Bank of america s tangible book value per share for the quarter that ended in dec.
Book value per share tells investors what a banks, or any stocks, book value is on a pershare basis. Applying the 20002015 regression of pricetangible book value per dollar of rotce to our pro forma upside estimates and estimated yearend tangible book value per share translates to our. It is referred to by many as the company s liquidation value. Historical price to book ratio values for wells fargo wfc over the last 10 years. Bank ozk announces fourth quarter and record full year. Company ticker price tangible book value dividend yield total return 2020 through march 16 j. For a reconciliation of this measure to reported results, see appendix e. Under terms of the transaction, bank of america would exchange. Bank of america released a betterthanexpected thirdquarter earnings report before the markets opened on monday. These bargain bank stocks may emerge from the coronavirus. Why did bank of america change its focus to tangible book. Bank of america price to tangible book value bac ycharts.
The current price to book ratio for wells fargo as of april 30, 2020 is 0. Total tangible equity is calculated as the total stockholders equity minus preferred stock minus intangible. 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. A tangible asset is anything that has commercial or exchange value and has a. Price to book value is a valuation ratio that is measured by stock price book value per share. The following are the 10 most profitable bank stocks trading below tangible book value, for which yearend data were available friday. In depth view into bank of america price to tangible book value including historical data from 1973, charts, stats and industry comps. The current price to book ratio for bank of america as of may 01, 2020 is 0. Tangible book value per share tbvps equals a companys net tangible assets divided by its number of shares outstanding. Using the pricetobook ratio to value bank stocks the. 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. And while it might seem like the bac stock price almost by definition would be too cheap at 1x book, thats not how trading necessarily has played out. Bank of america corporation price to tangible book ratio ptb.
Why did bank of america change its focus to tangible book value. To arrive at this number, subtract liabilities from assets. Bank of america s book value per sharefor the quarter that ended in dec. Bank of america buys merrill lynch creating unique. Sifting through beaten down travel stocks with air lease. Bank of america priceto tangible book historical data all numbers are in millions except for per share data and ratio. Book value per share is a widely used stock evaluation measure.
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. At present, bac stock is trading in line with its tangible book value, or net tangible equity which is. In depth view into bank of america tangible book value per share including historical data from 1973, charts, stats and industry comps. Find out all the key statistics for bank of america corporation bac, including valuation measures, fiscal year.
The stock is not cheap on the metrics i usually use. Most of the banks have been generating low to midteen returns on tangible. Bank of america tangible book value per share bac ycharts. Bank of america 2006 operating performance by division source. Go for banks that grow their book value at a high rate. All of the large bank stocks have taken a major hit here despite strong book values. Bank pricetangible book value april 7 pricetangible book value jan. Historical price to book ratio values for bank of america bac over the last 10 years. Tangible book value per share tbvps investing answers.
The book value is essentially the tangible accounting value of a firm compared. As of today 20200429, bank of americas share price is usd 24. Compare that to another financial stock, bank of america, which has an roe of 10. One of the best bank stocks to buy on the 2020 coronavirus dip is bank of america. Is high tide approaching for bank mergers and acquisitions.
The pricetobook pb ratio is an evaluation metric that is used to compare the current market price of a companys stock to its book value. Book value growth has averaged 27% annually for the past five years. Bank of americas current and past price to tangible book ratio ptb ratios over the last year csimarket. The difference between pricetotangiblebook and pricetobook ratio is that book value other than intangibles are used in the calculation. Bank of america corporation bac valuation measures.
Us banks trading at the lowest pricetoadjusted tangible. The average premium in 2018 was 172% of the sellers tangible book value, an increase from 165% in 2017. Bank of america earnings just good enough 247 wall st. Find the latest book value per share for bank of america corporation bac.
The pb ratio is favored by value investors for its. Bank of america corporation bac book value per share. The calculation of the banks ratio of total tangible. Includes bank of america person to payments sent and received through e mail or mobile identification. Wells fargo price to book ratio 20062020 wfc macrotrends. Time to buy bank of america stock to get defensive, d. Bank stocks look like bargains and their dividends are. Davidson turned bullish, saying he believed the bank will outperform its peers during the economic.