AppLovin Corp. (NASDAQ:APP)

The price-to-book (P/BV) ratio has exhibited significant fluctuations between 2022 and the projected figures for 2026. Initially, the ratio decreased substantially before increasing dramatically, followed by a moderation in the most recent projection.

P/BV Ratio Trend

In March 2022, the P/BV ratio stood at 7.83. This decreased considerably to 2.67 by February 2023, indicating a substantial decline in the market’s valuation of the company’s net assets relative to its share price. A significant increase was then observed, with the ratio rising to 16.06 in February 2024. This upward movement accelerated dramatically, reaching 99.97 in the February 2025 projection. The latest projection for February 2026 shows a decrease to 65.10, though remaining substantially higher than the 2022 and 2023 levels.

The share price demonstrates a similar pattern of decline followed by substantial growth. The share price fell from US$44.55 in March 2022 to US$13.50 in February 2023. It then increased to US$58.99 in February 2024, and experienced exponential growth to US$320.49 in February 2025, before a more moderate increase to US$412.00 in February 2026.

Book Value per Share Trend

Book value per share (BVPS) decreased from US$5.69 in March 2022 to US$5.05 in February 2023. It continued to decline, reaching US$3.67 in February 2024, and US$3.21 in February 2025. However, a notable increase is projected for February 2026, with BVPS reaching US$6.33. This suggests a potential recovery or restructuring of the company’s asset base.

The substantial increase in the P/BV ratio from 2024 to 2025, coupled with the concurrent increase in share price, suggests a significant shift in investor sentiment. While the projected decrease in the P/BV ratio for 2026 indicates some moderation, the ratio remains elevated compared to earlier periods. The projected increase in BVPS for 2026 may contribute to sustaining a higher valuation.