Price to Book Value (P/BV)
since 2005
Calculation
Cytokinetics Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity (deficit)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 1, 2023 | — | = | 43.11 | ÷ | -1.13 | -1.13 | = | -107,900 | ÷ | 95,161,391 | |
| Feb 25, 2022 | 12.19 | = | 35.02 | ÷ | 2.87 | 2.87 | = | 243,863 | ÷ | 84,856,037 | |
| Feb 26, 2021 | 11.75 | = | 18.73 | ÷ | 1.59 | 1.59 | = | 113,383 | ÷ | 71,110,576 | |
| Mar 4, 2020 | — | = | 14.86 | ÷ | -0.18 | -0.18 | = | -10,937 | ÷ | 59,450,437 | |
| Mar 7, 2019 | 12.72 | = | 6.01 | ÷ | 0.47 | 0.47 | = | 25,934 | ÷ | 54,888,369 | |
| Mar 5, 2018 | 4.11 | = | 8.35 | ÷ | 2.03 | 2.03 | = | 109,842 | ÷ | 54,008,113 | |
| Mar 6, 2017 | 5.24 | = | 11.85 | ÷ | 2.26 | 2.26 | = | 94,361 | ÷ | 41,729,549 | |
| Mar 3, 2016 | 3.75 | = | 6.50 | ÷ | 1.73 | 1.73 | = | 68,590 | ÷ | 39,592,808 | |
| Mar 6, 2015 | 3.28 | = | 7.80 | ÷ | 2.38 | 2.38 | = | 92,064 | ÷ | 38,674,892 | |
| Mar 7, 2014 | 6.77 | = | 10.21 | ÷ | 1.51 | 1.51 | = | 54,442 | ÷ | 36,078,367 | |
| Mar 15, 2013 | 2.16 | = | 6.30 | ÷ | 2.91 | 2.91 | = | 70,085 | ÷ | 24,077,245 | |
| Mar 13, 2012 | 1.85 | = | 7.02 | ÷ | 3.78 | 3.78 | = | 48,178 | ÷ | 12,729,467 | |
| Mar 11, 2011 | 1.44 | = | 9.12 | ÷ | 6.32 | 6.32 | = | 70,516 | ÷ | 11,151,683 | |
| Mar 11, 2010 | 2.07 | = | 20.16 | ÷ | 9.74 | 9.74 | = | 101,428 | ÷ | 10,410,819 | |
| Mar 12, 2009 | 2.14 | = | 12.00 | ÷ | 5.61 | 5.61 | = | 49,766 | ÷ | 8,869,882 | |
| Mar 12, 2008 | 1.52 | = | 18.54 | ÷ | 12.16 | 12.16 | = | 99,916 | ÷ | 8,216,883 | |
| Mar 12, 2007 | 3.31 | = | 45.06 | ÷ | 13.63 | 13.63 | = | 106,313 | ÷ | 7,802,005 | |
| Mar 10, 2006 | 3.46 | = | 42.90 | ÷ | 12.41 | 12.41 | = | 73,561 | ÷ | 5,927,659 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Cytokinetics Inc. Annual Report.
An analysis of the financial metrics between 2006 and 2023 reveals a significant divergence between the market valuation of the equity and the accounting book value. The overall trend is characterized by a steady erosion of book value per share (BVPS) and a corresponding expansion in the price-to-book value (P/BV) ratio, indicating that market valuation became increasingly decoupled from tangible net assets over time.
- Book Value per Share (BVPS) Trends
- A consistent long-term decline in BVPS is observed, starting at 12.41 USD in 2006 and falling to -1.13 USD by 2023. Notable periods of deterioration include the transition from 2009 to 2014 and a sharp contraction in 2019. The BVPS entered negative territory in 2020 and again in 2023, signifying periods where liabilities exceeded total assets.
- Price to Book Value (P/BV) Ratio Volatility
- The P/BV ratio experienced three distinct phases. From 2006 to 2011, the ratio remained relatively low and stable, fluctuating between 1.44 and 3.46. Between 2012 and 2018, a gradual upward trend emerged as the ratio climbed from 1.85 to 4.11. In the final period from 2019 to 2022, the ratio surged significantly, peaking at 12.72 in 2019 and remaining above 11.00 through 2022.
- Market Valuation and Asset Decoupling
- The increase in the P/BV ratio during the latter years suggests that the market began pricing the equity based on growth expectations or intangible assets rather than the company's reported book value. This is most evident in 2021 and 2022, where the share price rose to 35.02 USD despite a BVPS of only 2.87 USD, resulting in a high valuation premium.
- Impact of Negative Equity
- The absence of P/BV ratios in 2020 and 2023 coincides directly with the occurrences of negative BVPS. Because the book value per share fell below zero during these years, the P/BV ratio became mathematically undefined, highlighting a period of significant balance sheet instability.
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Comparison to Competitors
Cytokinetics Inc., P/BV, long-term trends, comparison to competitors
| Cytokinetics Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 1, 2023 | — | 15.52 | 35.01 | 4.88 | 3.64 | 29.36 | 4.90 | 5.37 | 6.07 | 2.48 | 3.77 | 4.83 | 5.50 |
| Feb 25, 2022 | 12.19 | 16.53 | 18.51 | 4.07 | 4.16 | 25.28 | 3.65 | 5.90 | 5.05 | 3.35 | 3.60 | 5.18 | 6.16 |
| Feb 26, 2021 | 11.75 | 14.18 | 14.53 | 3.55 | 3.93 | 35.07 | 4.33 | 6.72 | 7.46 | 2.98 | 4.81 | 5.15 | 6.30 |
| Mar 4, 2020 | — | — | 13.84 | 2.80 | 3.72 | 51.67 | 3.93 | 6.61 | 7.83 | 3.00 | 3.79 | 4.16 | 10.23 |
| Mar 7, 2019 | 12.72 | — | 9.41 | 5.89 | 2.80 | 12.87 | 3.89 | 6.08 | 7.79 | 3.80 | 5.07 | 3.75 | 10.68 |
| Mar 5, 2018 | 4.11 | 36.95 | 5.02 | 8.88 | 2.58 | 7.33 | 5.15 | 5.79 | 4.30 | 2.94 | 5.66 | 3.30 | 20.14 |
| Mar 6, 2017 | 5.24 | 21.24 | 4.14 | 5.66 | 2.56 | 6.33 | 4.88 | 4.72 | 4.51 | 3.40 | 8.58 | 2.86 | 18.42 |
| Mar 3, 2016 | 3.75 | 22.17 | 3.94 | 7.04 | 2.53 | 5.51 | 6.59 | 4.07 | 3.15 | 2.84 | 10.53 | 2.42 | 22.38 |
| Mar 6, 2015 | 3.28 | 56.09 | 4.59 | 6.72 | 2.63 | 5.14 | 10.08 | 4.01 | 3.42 | 2.95 | 16.22 | 2.51 | 25.60 |
| Mar 7, 2014 | 6.77 | 18.05 | 4.30 | 5.92 | 2.38 | 3.69 | 11.36 | 3.50 | 3.35 | 2.69 | 16.74 | 2.90 | 14.77 |
| Mar 15, 2013 | 2.16 | 18.06 | 3.57 | 4.40 | 2.23 | 4.15 | 7.01 | 3.29 | 2.44 | 2.42 | 12.91 | 1.72 | 10.08 |
| Mar 13, 2012 | 1.85 | — | 2.83 | 3.50 | 2.17 | 3.35 | 5.08 | 3.13 | 2.14 | 1.95 | 19.19 | 1.38 | 10.05 |
| Mar 11, 2011 | 1.44 | — | 2.04 | 2.76 | 2.39 | 3.21 | 5.29 | 2.88 | 1.85 | 1.75 | 6.42 | 1.41 | 16.16 |
| Mar 11, 2010 | 2.07 | — | 2.46 | 2.88 | 2.07 | 4.17 | 6.74 | 3.45 | 1.97 | 1.57 | 5.49 | 1.29 | 7.45 |
| Mar 12, 2009 | 2.14 | — | 2.48 | 3.29 | 1.69 | 5.01 | 9.83 | 3.56 | 2.72 | 1.44 | 2.94 | 1.02 | 21.09 |
| Mar 12, 2008 | 1.52 | — | 2.77 | 4.22 | 2.62 | 4.16 | 11.76 | 4.17 | 5.38 | 2.32 | 3.24 | 1.62 | 8.92 |
| Mar 12, 2007 | 3.31 | — | 3.96 | 5.50 | 3.32 | 5.43 | 18.07 | 4.78 | 5.45 | 2.49 | 5.77 | 1.38 | 7.52 |
| Mar 10, 2006 | 3.46 | — | 4.26 | 4.00 | 3.78 | 5.85 | 9.18 | 4.66 | 4.30 | 2.94 | 8.16 | 2.03 | 18.12 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Cytokinetics Inc., P/BV, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Cytokinetics Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Mar 1, 2023 | — | 5.66 |
| Feb 25, 2022 | 12.19 | 5.72 |
| Feb 26, 2021 | 11.75 | 5.99 |
| Mar 4, 2020 | — | 5.82 |
| Mar 7, 2019 | 12.72 | 6.02 |
| Mar 5, 2018 | 4.11 | 5.14 |
| Mar 6, 2017 | 5.24 | 4.58 |
| Mar 3, 2016 | 3.75 | 4.15 |
| Mar 6, 2015 | 3.28 | 4.47 |
| Mar 7, 2014 | 6.77 | 3.97 |
| Mar 15, 2013 | 2.16 | 3.21 |
| Mar 13, 2012 | 1.85 | 2.55 |
| Mar 11, 2011 | 1.44 | 2.25 |
| Mar 11, 2010 | 2.07 | 2.37 |
| Mar 12, 2009 | 2.14 | 2.60 |
| Mar 12, 2008 | 1.52 | 3.42 |
| Mar 12, 2007 | 3.31 | 3.82 |
| Mar 10, 2006 | 3.46 | 4.00 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Cytokinetics Inc., P/BV, long-term trends, comparison to industry (health care)
| Cytokinetics Inc. | Health Care | |
|---|---|---|
| Mar 1, 2023 | — | 87,112.79 |
| Feb 25, 2022 | 12.19 | 5.48 |
| Feb 26, 2021 | 11.75 | 5.37 |
| Mar 4, 2020 | — | 5.14 |
| Mar 7, 2019 | 12.72 | 5.17 |
| Mar 5, 2018 | 4.11 | 4.55 |
| Mar 6, 2017 | 5.24 | 4.06 |
| Mar 3, 2016 | 3.75 | 3.62 |
| Mar 6, 2015 | 3.28 | 4.10 |
| Mar 7, 2014 | 6.77 | 3.51 |
| Mar 15, 2013 | 2.16 | 2.87 |
| Mar 13, 2012 | 1.85 | 2.51 |
| Mar 11, 2011 | 1.44 | 2.24 |
| Mar 11, 2010 | 2.07 | 2.36 |
| Mar 12, 2009 | 2.14 | 2.65 |
| Mar 12, 2008 | 1.52 | 3.45 |
| Mar 12, 2007 | 3.31 | 3.81 |
| Mar 10, 2006 | 3.46 | 3.97 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).