Price to Book Value (P/BV)
since 2005
Calculation
Abiomed Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| May 20, 2022 | 7.15 | = | 235.75 | ÷ | 32.99 | 32.99 | = | 1,503,326 | ÷ | 45,563,937 | |
| May 21, 2021 | 9.54 | = | 280.00 | ÷ | 29.36 | 29.36 | = | 1,329,675 | ÷ | 45,295,979 | |
| May 21, 2020 | 8.28 | = | 196.32 | ÷ | 23.70 | 23.70 | = | 1,065,466 | ÷ | 44,956,959 | |
| May 23, 2019 | 12.65 | = | 262.64 | ÷ | 20.76 | 20.76 | = | 936,890 | ÷ | 45,124,729 | |
| May 24, 2018 | 25.44 | = | 394.46 | ÷ | 15.50 | 15.50 | = | 689,524 | ÷ | 44,477,837 | |
| May 25, 2017 | 13.17 | = | 135.88 | ÷ | 10.32 | 10.32 | = | 452,071 | ÷ | 43,819,330 | |
| May 26, 2016 | 11.45 | = | 98.80 | ÷ | 8.63 | 8.63 | = | 368,775 | ÷ | 42,735,136 | |
| May 28, 2015 | 8.67 | = | 60.57 | ÷ | 6.99 | 6.99 | = | 291,560 | ÷ | 41,737,054 | |
| May 28, 2014 | 5.15 | = | 21.71 | ÷ | 4.22 | 4.22 | = | 168,353 | ÷ | 39,926,903 | |
| May 28, 2013 | 6.26 | = | 22.17 | ÷ | 3.54 | 3.54 | = | 137,080 | ÷ | 38,735,227 | |
| Jun 4, 2012 | 6.16 | = | 19.77 | ÷ | 3.21 | 3.21 | = | 126,297 | ÷ | 39,383,341 | |
| Jun 2, 2011 | 6.54 | = | 17.81 | ÷ | 2.72 | 2.72 | = | 104,743 | ÷ | 38,482,962 | |
| Jun 8, 2010 | 3.31 | = | 9.55 | ÷ | 2.88 | 2.88 | = | 107,956 | ÷ | 37,433,189 | |
| Jun 8, 2009 | 2.39 | = | 7.43 | ÷ | 3.11 | 3.11 | = | 115,983 | ÷ | 37,350,501 | |
| Jun 16, 2008 | 6.97 | = | 19.80 | ÷ | 2.84 | 2.84 | = | 93,594 | ÷ | 32,956,535 | |
| Jun 13, 2007 | 2.98 | = | 11.23 | ÷ | 3.76 | 3.76 | = | 122,095 | ÷ | 32,439,174 | |
| Jun 14, 2006 | 4.83 | = | 12.66 | ÷ | 2.62 | 2.62 | = | 69,488 | ÷ | 26,532,524 | |
| Jun 14, 2005 | 4.31 | = | 9.25 | ÷ | 2.15 | 2.15 | = | 56,179 | ÷ | 26,153,672 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Abiomed Inc. Annual Report.
The Price to Book Value (P/BV) ratio exhibits a trajectory characterized by initial stability, a period of aggressive valuation expansion, and a subsequent correction toward a normalized range. Throughout the period from 2005 to 2022, the relationship between market price and book value shifted from a modest premium to a significant valuation peak before stabilizing.
- Initial Valuation Phase (2005–2014)
- During this interval, the P/BV ratio remained relatively contained, generally fluctuating between 2.39 and 8.67. The lowest valuation was recorded in 2009 at 2.39, coinciding with a share price dip to 7.43. Despite the variability in share price, the book value per share grew gradually from 2.15 to 4.22, suggesting that the market valuation during this decade was closely tied to the underlying asset growth with moderate premiums.
- Rapid Expansion Phase (2015–2018)
- A significant shift in valuation occurs starting in 2015, where the P/BV ratio entered a period of steep ascent. The ratio climbed from 8.67 in 2015 to a peak of 25.44 in 2018. This surge was driven primarily by a rapid acceleration in share price, which rose from 60.57 to 394.46 over four years. This trend indicates a period where market expectations for future growth far outpaced the growth of the company's tangible net assets.
- Correction and Stabilization Phase (2019–2022)
- Following the 2018 peak, a marked downward correction in the P/BV ratio is observed. The ratio fell to 12.65 in 2019 and continued to decline to 7.15 by 2022. This contraction occurred despite a consistent and uninterrupted increase in the book value per share, which rose from 20.76 in 2018 to 32.99 in 2022. The decline in the ratio is attributable to a reduction in share price, reflecting a market realignment of the company's valuation relative to its book value.
The long-term trend demonstrates a decoupling of share price and book value between 2015 and 2018, followed by a convergence. While the book value per share maintained a steady upward trajectory throughout the entire 17-year period, the P/BV ratio reveals that the market's willingness to pay a premium for those assets peaked in 2018 before returning to levels more consistent with the 2012–2014 period.
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Comparison to Competitors
Abiomed Inc., P/BV, long-term trends, comparison to competitors
| Abiomed Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| May 20, 2022 | 7.15 | 5.06 | 1,553,040.70 | 7.78 | 2.24 | 5.81 |
| May 21, 2021 | 9.54 | 5.75 | 3.07 | 8.59 | 3.26 | 6.27 |
| May 21, 2020 | 8.28 | 6.65 | 2.19 | 9.53 | 2.48 | 4.83 |
| May 23, 2019 | 12.65 | 4.96 | 2.42 | 8.13 | 2.66 | 4.92 |
| May 24, 2018 | 25.44 | 4.38 | 2.82 | 8.96 | 2.31 | 4.89 |
| May 25, 2017 | 13.17 | 3.40 | 2.24 | 9.91 | 2.40 | 4.59 |
| May 26, 2016 | 11.45 | 3.76 | 1.72 | 4.73 | 2.25 | 3.98 |
| May 28, 2015 | 8.67 | 2.68 | 1.44 | 4.67 | 2.04 | 3.12 |
| May 28, 2014 | 5.15 | 3.32 | 1.62 | 5.55 | 3.27 | 3.20 |
| May 28, 2013 | 6.26 | 2.38 | 1.00 | 4.37 | 2.78 | 2.16 |
| Jun 4, 2012 | 6.16 | 2.06 | 0.79 | 6.43 | 2.23 | 1.88 |
| Jun 2, 2011 | 6.54 | 3.61 | 0.95 | 7.31 | 2.59 | 1.96 |
| Jun 8, 2010 | 3.31 | 3.24 | 1.06 | 6.34 | 2.68 | 1.80 |
| Jun 8, 2009 | 2.39 | 3.69 | 1.06 | 8.22 | 2.89 | 1.60 |
| Jun 16, 2008 | 6.97 | 4.78 | 0.96 | 3.55 | 5.03 | 1.67 |
| Jun 13, 2007 | 2.98 | 4.83 | 1.75 | 12.99 | 5.31 | 2.98 |
| Jun 14, 2006 | 4.83 | 5.88 | 2.02 | 7.10 | 5.78 | 3.51 |
| Jun 14, 2005 | 4.31 | 4.69 | 2.04 | 7.80 | 6.06 | 4.50 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Sector (Health Care Equipment & Services)
Abiomed Inc., P/BV, long-term trends, comparison to sector (health care equipment & services)
| Abiomed Inc. | Health Care Equipment & Services | |
|---|---|---|
| May 20, 2022 | 7.15 | 263,051.14 |
| May 21, 2021 | 9.54 | 5.01 |
| May 21, 2020 | 8.28 | 4.30 |
| May 23, 2019 | 12.65 | 4.00 |
| May 24, 2018 | 25.44 | 3.83 |
| May 25, 2017 | 13.17 | 3.44 |
| May 26, 2016 | 11.45 | 2.95 |
| May 28, 2015 | 8.67 | 2.39 |
| May 28, 2014 | 5.15 | 2.94 |
| May 28, 2013 | 6.26 | 2.12 |
| Jun 4, 2012 | 6.16 | 1.89 |
| Jun 2, 2011 | 6.54 | 2.39 |
| Jun 8, 2010 | 3.31 | 2.21 |
| Jun 8, 2009 | 2.39 | 2.31 |
| Jun 16, 2008 | 6.97 | 2.78 |
| Jun 13, 2007 | 2.98 | 3.52 |
| Jun 14, 2006 | 4.83 | 3.80 |
| Jun 14, 2005 | 4.31 | 3.90 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Industry (Health Care)
Abiomed Inc., P/BV, long-term trends, comparison to industry (health care)
| Abiomed Inc. | Health Care | |
|---|---|---|
| May 20, 2022 | 7.15 | 87,112.79 |
| May 21, 2021 | 9.54 | 5.48 |
| May 21, 2020 | 8.28 | 5.37 |
| May 23, 2019 | 12.65 | 5.14 |
| May 24, 2018 | 25.44 | 5.17 |
| May 25, 2017 | 13.17 | 4.55 |
| May 26, 2016 | 11.45 | 4.06 |
| May 28, 2015 | 8.67 | 3.62 |
| May 28, 2014 | 5.15 | 4.10 |
| May 28, 2013 | 6.26 | 3.51 |
| Jun 4, 2012 | 6.16 | 2.87 |
| Jun 2, 2011 | 6.54 | 2.51 |
| Jun 8, 2010 | 3.31 | 2.24 |
| Jun 8, 2009 | 2.39 | 2.36 |
| Jun 16, 2008 | 6.97 | 2.65 |
| Jun 13, 2007 | 2.98 | 3.45 |
| Jun 14, 2006 | 4.83 | 3.81 |
| Jun 14, 2005 | 4.31 | 3.97 |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).