Gm market to book ratio

During the past 5 years, the average book value per share growth rate was 4. This is the trap awaiting the stock market ahead of a. It entails dividing your business current share price by the book value per share, i. Like the booktomarket ratio, it seeks to evaluate whether the stock a company is over or undervalued by comparing the market price of all outstanding shares with the net assets of the company. The price to book ratio is calculated as market value book value or the stock price book value per share. Market value is the current stock price times all outstanding shares, net book value is all assets minus all liabilities.

Book value is defined as total assets minus liabilities, preferred. The market to book ratio, or price to book ratio, is used to compare the current market value or price of a business to its book value of equity on the balance sheet. Similar to book to market ratio, price to book ratio tries in ascertaining whether the stock company is over or undervalued by comparing all outstanding share price with the companys net asset. The market to book ratio compares the market value of the stock to the book value of the stock. Generally, the result of this comparison can be used by market analysts to determine if a company is overvalued or undervalued. During the past 3 years, the average book value per share growth rate was 0. Tesla price to book ratio 20092020 tsla macrotrends.

Gms earnings are forecast to grow, but not significantly. The price to book ratio or pb is calculated as market capitalization divided by its book value. The peg ratio for this company is based on expected earnings for twelve months ending april 2021 back to gm overview data provider. The book value is essentially the tangible accounting value of a firm.

A solvency ratio calculated as total debt divided by total debt plus shareholders equity. Booktomarket ratio definition the business professor. An underpriced stock could mean the stock is selling for less than it should right now. It operates primarily in the united states, china, norway and internationally. This formula is a way of estimating if the market price of the stock is overpriced or underpriced. The priceto book pb ratio has been favored by value investors for decades and is widely used by market analysts. Find out all the key statistics for general motors company gm, including valuation. During the past 12 years, the highest pb ratio of general motors co was 2. The market to book mb ratio is widely used in the literature but in two very distinct ways. The current price to book ratio for general motors as of may 04, 2020 is 0. Now, collect the number of outstanding shares of the company and determine the market capitalization by multiplying the current stock price and the number of outstanding.

It is a term that measures the shares market price and its book price if the value is greater than 1, the market value of the company is greater that the valuation of equity in the financial statement in the balance sheet. This ratio can is traceable through using pershare values. Apply historical fundamental analysis to find patterns among financial statement drivers such as direct expenses of 142 b, consolidated income of 6. Explaining market to book 3 the relation between the firms market price and book equity has long been of interest to researchers. Teslas market capitalization has skyrocketed into the stratosphere to. Firstly, collect the current market value of the stock which is easily available from the stock market. Price to book ratio how to analyze stocks trading strategy guides. General motors company gm stock market live, quotes. General motorss current and past price to tangible book ratio ptb ratios over the last year csimarket. General motors gm fundamental analysis, stock research. Like the booktomarket ratio, it seeks to evaluate whether the stock a company is over or. Meanwhile, ford motor companys priceto book and pricetosales are 1. General motors companys current price to book ratio has decreased due to shareprice contraction of 41.

As you see the ratios are very similar, the one is simply the inverse the opposite of the other. The pbv ratio is interpreted as an indicator of market judgment about the relationship between a companys required rate of return and its actual rate of return. The markettobook ratio, also called the pricetobook ratio, is the reverse of the booktomarket ratio. Market to book ratio price to book formula, examples. Global connected automotive infotainment system market with. Find out all the key statistics for general motors company gm, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. The formula calculation is done by using the following steps. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. New york including stock price, stock chart, company news, key statistics, fundamentals and company profile. The price to book ratio, also known as the market to book ratio, is a. During the past 12 months, general motors cos average book value per share growth rate was 7. On the one hand, it is taken to indicate the value that the market places on the common equity. A ratio used to find the value of a company by comparing the book value of a firm to its market value.

Market to book financial ratio the balance small business. The pbv ratio is interpreted as an indicator of market judgment about the relationship between a companys. The actual value of a company is determined by internal accounting, and its market value is its market capitalization. The book to market ratio is calculated as book value market value or book value per share stock price. Find the latest general motors company gm stock quote, history, news and other vital information to help you with your stock trading and investing. Historical price to book ratio values for general motors gm over the last 10 years.

Historical price to book ratio values for tesla tsla over the last 10 years. In depth view into general motors co book value per share explanation, calculation. Price to book value is a valuation ratio that is measured by stock price book value per share. In accordance with recently published financial statements general motors company has current ratio of 0. Pe ratio ttm pe ratio including extraordinary items price to sales ratio 0. It is also known as the market to book ratio and the pricetoequity ratio which should not be confused with the pricetoearnings ratio, and its inverse is called the book to market ratio.

Market to book financial ratio the market to book financial ratio equals the market value of the company divided by its book value. General motors company price to book ratio pb ratios. General motors price to book ratio 20092019 gm macrotrends. Likewise, we can calculate forward price to book value ratio of aaa bank. A book to market ratio is a mathematical comparison of a companys actual value to its market value. Normally, a companys share value will be greater than its book value because the share price takes into account investors estimate of the profitability of the company how well it uses its assets and includes best guesses of the future value of the company. The current price to book ratio for tesla as of february 14, 2020 is 19. Market to book ratio is also known as the price to book ratio. General motors company gm stock price, quote, history. The market to book ratio is also known as price to book ratio which is the opposite of book to market ratio. The first entails dividing the market value of your company by its book value. Conversely, if the value is significantly lower than 1. Technically, pb can be calculated either including or excluding intangible assets and goodwill. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets.

695 913 205 503 513 751 256 221 375 1371 128 723 904 1098 1501 517 998 1020 61 138 829 887 192 425 1332 1099 1199 394 110 907 295 1207 1277 1156 769 1366 229 838