In theory, a stocks tangible book value per share represents the amount of money an investor would receive for each share if a company were. The value of a business thats dead is called its tangible book value or we call it zombie value. Total shareholders equity common shares outstanding. Price to book ratio definition price to book value is a valuation ratio that is measured by stock price book value per share. American international group price to book value aig. What does it mean if a company has a negative tangible book. Bruce berkowitz axes positions in berkshire hathaway, aig, ibm. Aig aig common is trading for a large discount to tangible book at around 50% of assets minus liabilities. We had a simple thesis that aig still had a franchise value, and. Zombie value is the tangible book value of the business per share. This may underestimate the true economic values of the assets. American international group, i aig valuation measures. A tangible book value per share tbvps is a method of valuing a company on a per share basis by measuring its equity after removing any intangible assets.
Find out all the key statistics for american international group, i aig, including valuation. Adjusted tangible book value per common share, which is adjusted book value per common share excluding goodwill, value of business. Aig reports first quarter 2020 results marketwatch. This ratio gives an idea of whether an investor is paying too much for what would be left if the company went into liquidation as it represents the hard assets of the company. The tangible book value per share tbvps shows the amount per share that shareholders would expect if the firm was liquidated today.
What that means is weve figured out what this business would be worth if the business is dead and doesnt do anything in the future at all. Book value per common share, excluding accumulated other comprehensive income 70. Aig book value per share american international group. Find the latest book value per share for american international group inc aig. A look at tangible book in many cases, we can use book. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Aig stock is still cheap and worth a look aol finance. Aig book value per share explanation usually a companys book value and tangible book per share may not reflect its true value. Aig pricetotangiblebook american international group. Price to book value is a valuation ratio that is measured by stock price book value per share. Book value per share financial definition of book value per share. Market capitalization is equal to the share price multiplied by the number of shares outstanding.
American international group tangible book value per. American international groups book value per sharefor the quarter that ended in mar. N american international group inc key metrics reuters. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. Book value per share tells investors what a banks, or any stocks, book value is on a pershare basis.
The stock has been under a great deal of pressure, but bruce berkowitz has. This ratio is calculated by dividing the latest price close by tangible book value per share. The amount of equity available to shareholders expressed on a per common share basis. Press release aig reports first quarter 2020 results. American international group inc aig price book value. American international group market cap chart for aig koyfin.
Incredibly, even at a multiyear high, aigs price to tangible book value. He is asked to calculate the book value per share of a stock and check if the stock trades at a fair value. When pro forma net tangible book value per share is adjusted for the additional 3. 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. Price book value is a widely used stock evaluation measure. Find the latest price book value for american international group inc aig. In depth view into american international group book value per share. Dec 12, 2016 a doubledigit return profile warrants the 1x multiple that we are applying to its tangible book value per share. The assets may be carried on the balance sheets at the original cost minus depreciation. View tangible book value per share for aig access over 100 stock metrics like beta, evebitda, pe10, free cash flow yield, kz index and cash conversion cycle. American international group price to book value aig ycharts.
While we expect aigs return profile to benefit from lower taxes, we also expect. The tbv excludes a firms intellectual property, patents, and trademarks because these are intangible assets that cannot be easily sold such as property, plant, and equipment. In depth view into american international group tangible book per share explanation, calculation, historical data and more. To arrive at this number, subtract liabilities from assets. Book value per share is a widely used stock evaluation measure. Tangible book value per common share is derived by dividing total aig common shareholders equity, excluding goodwill. Tangible common shareholders equity, tangible book value per. The call is open to the public and can be accessed via a live listenonly webcast in the. Tbvps determines the potential value per share of a company in the. This implies that shares trade at a 17% discount to tbv, much. American international group inc aig book value per share. May 04, 2020 tangible book value per common share 63. Aig will host a conference call tomorrow, tuesday, may 5, 2020 at 8.
Is it time to sell these insurance giants at multiyear highs. Find out all the key statistics for american international group, i aig, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Long term liabilities capital expenditure capital expenditure ttm. Value per common share, excluding aoci and deferred tax assets dta adjusted tangible book value per common share are used to provide more accurate measure of the realizable value of shareholder on a percommon share basis. Oct 10, 2016 if, for some reason, a company were to cease trading permanently, the people who had put money into the business its shareholders and creditors get their money out by having the assets of the company sold and converted into cash. The price to book ratio or pb is calculated as market capitalization divided by its book value. American international group price book for the quarter ending march 03, 2018 was 0. First quarter 2020 financial results presentation aig. The book value is essentially the tangible accounting value of a firm. How to figure the book value of bank stock finance zacks.
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