Tbv is frequently used to illustrate how much of a. Buy these 3 bank stocks because they will weather a. In depth view into bank of america tangible book value per share including historical data from 1973, charts, stats and industry comps. That will pressure bacs net interest margin, and thus the banks earnings. Oct 16, 2019 most importantly, at least to me as an investor, is tangible book value. May 07, 20 on a price to tangible book value, bac stacks up well against its competition on a valuation basis, and trades at a bigger discount to tangible book value than all but citibank. Historical price to book ratio values for wells fargo wfc over the last 10 years.
Remove intangibles tangible assets are those that can be touched and measured for example, cash in the bank, inventory, or a factory. Bank of america corporation bac valuation measures. How to figure the book value of bank stock finance zacks. Book value per share is a widely used stock evaluation measure. 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. Bank of america corp price tangible book value for the quarter ending may 05, 2020 was 1. Hence, bank of america s price to tangible book ratio of today is 1. Financials dip after big wednesday rally marketwatch. Most of the banks have been generating low to midteen returns on tangible book. Buying a stock below liquidation value can provide. Bank of america reports secondquarter 2011 financial. Usually a companys book value and tangible book per share may not reflect its true value. In depth view into bank of america tangible book per share explanation.
Bank of america s tangible book value per share for the quarter that ended in mar. Hence, bank of america corporations priceto book ratio for the period was 1. S banks including goldman sachs, morgan stanley and bank of america saw shares drop by at least 8 percent to begin this year. To calculate the tangible book value per share, malcolm finds that the firms number of shares outstanding is 2,000,000 million. Bank of america price to tangible book value bac ycharts. In depth view into bank of america book value per share explanation, calculation, historical data and more.
The bac stock price hasnt stayed below book value in almost two years. Bank of america is one of the worlds leading financial institutions, serving individual consumers, small and middlemarket businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. Total tangible equity is calculated as the total stockholders equity minus preferred stock minus intangible assets. Buy these 3 bank stocks because they will weather a downturn. Tangible book value per share tbvps equals a companys net tangible assets divided by its number of shares outstanding. Each bank also trades below tangible book value, or the. In depth view into bank of america price to tangible book value including historical data from 1973, charts, stats and industry comps. First quarter 2020 results and key metrics citigroup.
Bank of americas tangible book value per share for the quarter that ended in mar. Book value, tangible book value and dividends declared. 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. Bank of america corp price tangible book value chart for bac. Bank of america tangible book value per share bac ycharts. Wells fargo price to book ratio 20062020 wfc macrotrends. Bank dividends and book values to come under deep scrutiny. Banking institutions valued by net tangible assets banking institions mainly derive their revenues and income from three sources.
Banks falling book value could invite activist investors. To arrive at this number, subtract liabilities from assets. Bank of america reports fourthquarter 2014 net income of. Bank of america earnings just good enough 247 wall st. Current and historical return on tangible equity for bank of america bac from 2006 to 2020. The current price to book ratio for wells fargo as of may 26, 2020 is 0. Find out all the key statistics for bank of america corporation bac, including valuation measures, fiscal year. Tangible book value per share is calculated as the total tangible equity divided by. Time to buy bank of america stock to get defensive, d. Mar 28, 2017 the lower the price to tangible book or tangible equity ratio, the cheaper or more fairly valued the bank will be. Return on tangible equity can be defined as the amount of net. Deposit premiums in whole bank acquisitions are computed based on the excess of the purchase price over the targets tangible book value, as a percentage of the core deposit base.
A tangible asset is anything that has commercial or exchange value and has a physical form. Will bank of america stock dip below book value now. Jun 23, 2011 tangible book value is a company s net assets minus goodwill and intangibles. May 14, 2020 one of the best bank stocks to buy on the 2020 coronavirus dip is bank of america. Why did bank of america change its focus to tangible book value. It is referred to by many as the company s liquidation value. Aug 30, 2019 on at least one key metric, bank of america nyse.
Third quarter 2018 results and key metrics citigroup. Keep in mind that good prospects often command a premium in the market, so some of the best banks are always trading at more expensive valuations. Feb 04, 20 the following are the 10 most profitable bank stocks trading below tangible book value, for which yearend data were available friday. Tangible book value tbv is calculated by subtracting intangible assets from the companys book value. Bank of america return on tangible equity 20062020 bac. Apr 15, 2020 bank of america losses are manageable we slightly lowered our fair value estimate for this widemoat firm after it reported weaker firstquarter earnings. Bac heres why wells fargo and other bank stocks soared wednesday. Bac tangible book per share bank of america gurufocus. Bank of america corporation bac book value per share. Book value per share tells investors what a banks, or any stocks, book value is on a pershare basis.
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