The con thats really a pro the companys priceto book ratio has skyrocketed over the past two years, as has its priceto tangible book value ratio, which strips out goodwill and other. The book value is essentially the tangible accounting value of a firm. In depth view into general electric tangible book value per share including historical data from 1962, charts, stats and industry comps. Book value is always readily available, however, the projection of market value on the current market price of a single share, it is not readily available. General electric tangible assets book value per share are expected to significantly decrease based on the last few years of reporting. 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. Book value per share is a widely used stock evaluation measure. But tangible book values had begun to bounce back last year. Hence, todays pb ratio of general electric co is 2. One of the reasons i started this blog was to bring the issue of book value to light. General electric debt rating still looks high thestreet. Fundamental analysis data for general electric co ge, including priceearnings ratios and earnings per share, at ally invest.
The current year price to book value is expected to grow to 3. The assets may be carried on the balance sheets at the original cost minus depreciation. Tangible book value per share is calculated as the total tangible equity divided by. General electric company has a dividend yield of 0. It can be noted that the pb ratio is generally higher for software companies. Hence, general electric cos pb ratio of today is 2. May 11, 2017 for the calculation of book value, only tangible assets are taken into consideration, but market value considers both tangible as well as intangible assets.
General electric resources and capabilities free essays. Please check the relationship between general electric tangible assets book value per share and its revenue per employee accounts. How dangerous is general electrics mountain of debt. Should general electric investors worry about ge capital. 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. Most investors are familiar with the pe ratio, but fewer are comfortable with a metric like tangible book value.
Oct 27, 2019 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. Find the latest price book value for general electric company ge general electric company ge price book value zacks. Ge ge has been in the news lately and not because it has done anything good. General electric company price tangible book value for the quarter ending october 10, 2016 was 210. General electric cos current key valuation ratios, pe, pb, pcf, ps, compare to conglomerates industry and conglomerates sector. Ge is engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity since our incorporation in 1892. General electric key financial statistics including returns, dividends, risk metrics, margins and valuation ratios. Jul 08, 2009 general electric lost its triplea debt rating earlier this year, but its rating still looks too high next to comparable companies with lower debt. The price to tangible book value ratio ptbv expresses share price as a proportion of the companys tangible book value reported on the companys balance sheet. General electric cos tangible book value per share for the quarter that ended in jun.
General electric tangible assets book value per share vs. Hitting the books because the asset values of manufacturing companies such as 3m are generally high, another useful value metric to look at is the priceto tangible book value ratio. General electric company price tangible book value chart for ge. Tangible book is considered a hard measure of shareholder equity because. General electric co priceto tangible book historical data all numbers are in millions except for per share data and ratio. Other intangible assets, net sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Tbv is frequently used to illustrate how much of a company is left after a bankruptcy filing. General electric s shares got devastated during 2018. Historical price to book ratio values for general electric ge over the last 10 years. However, the stock is selling at such a big discount to fair value that. In this segment of the motley fool s financialsfocused show, where the money is. Ge capital is the financial services unit of the american conglomerate general electric company. Total tangible equity is calculated as the total stockholders equity minus preferred stock minus intangible assets.
General electric co ge is one of the largest and most diversified industrial corporations in the world. In depth view into emerson electric tangible book value annual including historical data from 1972, charts, stats and industry comps. A pb ratio represents the market value for every dollar of tangible assets. The earnings rating for general electric company stock is strong sell calculated from actual period earnings estimates revision 80% weight and previous period earnings surprise 20% weight. Correctedspotlight turns to goldman sachs after morgan. In depth view into general electric co pricetotangiblebook explanation, calculation, historical. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown.
General electric s tangible book value is negative. The primary reason for the higher pb ratio is low tangible assets as compared to the total assets. Its book value per share for the quarter that ended in jun. The last years tangible assets book value per share were at 26. Quarter general electric cos current price to book ratio has increased due to book value growth of 42 %, to price to book ratio of 2. Jack welch, general electric, and the pursuit of profit. Find out all the key statistics for general electric company ge, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Unyielding integrity, commitment to performance and thirst for change. During the past years, general electric cos highest price to tangible book ratio was 29. The company added disclosure on page 22 to include its definition of total tangible assets and thereby explain that the company excluded deferred tax assets and debt issuance costs in computing the pro forma net tangible book value and pro forma as adjusted net tangible book value as of july 31, 2010. The significance of book value interpreting a stocks book value.
Ge is over leveraged with a net tangible book value that is only 1% of total. Property, plant and equipment, net carrying value amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for. Sometimes things come around with just the name changing. Tangible book value is calculated by subtracting intangible assets intellectual property, patents, goodwill etc. Goldman sachs, below book value, is dows worst performer in. Perhaps one of the most recent examples would be the one of general electric nyse. It allows api clients to download millions of rows of historical data, to query our realtime economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds. Book value per share can be defined as the amount of equity available. Dec 19, 2018 general electric s shares got devastated during 2018.
General electric co ge earnings report, financial results. Find the latest book value per share for general electric company ge. General electric cos tangible book value per share for the quarter that ended in dec. Its major products cater to geindustryfocused financial services. The book value per share may be used by some investors to determine the equity in a company relative to the market value of the company, which is the price of its stock.
A negative tangible book value which means that its total worth is tied up in its brands, its goodwill, and its ability to. Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Tangible book value is a rough estimate of what a company would be worth if it was liquidated. Difference between book value and market value with. Analysts continue to warn general electric shareholders about the potential for future charges stemming from ge capital.
For example, here is the lead companyspecific article on yahoo. General electric general electric is a company who strives to put their best foot forward. The trading economics application programming interface api provides direct access to our data. Since intangibles such as goodwill cannot be sold when the company liquidates. Ge book value per share explanation usually a companys book value and tangible book per share may not reflect its true value.
General electric co price to book ratio pb ratios, ge. From airplane engines to light bulbs, their attitude has been admired not only in america, but worldwide. The power segment offers services energy production services. Tangible book value tbv is calculated by subtracting intangible assets from the companys book value. 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 intangible assets. 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. Click the learn more link below to see how ycharts calculates price to tangible book value. Fair value improves so long as the company grows earnings in the next five years. Copy of general electric by jackie kuempel collier on prezi. During the past 12 months, general electric cos average book value per share growth rate was 8. At first glance, the markets 8 percent rally on shares of general electric nyse. View all ge assets, cash, debt, liabilities, shareholder equity and investments. General electric co valuation comparisons csimarket. Select each category to receive additional information.
General electric is a hightech industrial company that operates worldwide through its four industrial segments, power, renewable energy, aviation and healthcare, and its financial services segment, capital. Price to book value is a valuation ratio that is measured by stock price book value per share. General electric cos book value per sharefor the quarter that ended in dec. Ge general electric co profile, stock quotes, financial. Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. During the past 3 years, the average book value per share growth rate was 28. General electric book value per share 20062019 ge macrotrends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether general electric is a good investment. During the past years, the highest pb ratio of general electric co was 3. Corrects comparison of goldman sachs and morgan stanley share prices to tangible book values in 12 paragraph by anna irrera and david henry.
We note that for the above companies price to book value ratio is higher than 45x. Current and historical book value per share for general electric ge from 2006 to 2019. Passion for our customers measuring our success by that of our customers always driven by. Passion for our customers measuring our success by that of our customers always driven by six sigma quality and a spirit of innovation. Goldman sachs, below book value, is dows worst performer. For more then 120 years, general electric has been number one in the products they sell.
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