Price to Book Value (P/BV)
since 2006
Calculation
First Solar 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2024 | 2.32 | = | 144.99 | ÷ | 62.59 | 62.59 | = | 6,687,469 | ÷ | 106,848,929 | |
| Feb 28, 2023 | 3.09 | = | 169.14 | ÷ | 54.74 | 54.74 | = | 5,836,055 | ÷ | 106,609,094 | |
| Mar 1, 2022 | 1.35 | = | 75.62 | ÷ | 56.05 | 56.05 | = | 5,959,551 | ÷ | 106,333,764 | |
| Feb 26, 2021 | 1.56 | = | 81.02 | ÷ | 52.09 | 52.09 | = | 5,520,928 | ÷ | 105,986,398 | |
| Feb 21, 2020 | 1.05 | = | 50.59 | ÷ | 48.33 | 48.33 | = | 5,096,767 | ÷ | 105,457,669 | |
| Feb 22, 2019 | 1.08 | = | 53.73 | ÷ | 49.69 | 49.69 | = | 5,212,403 | ÷ | 104,894,572 | |
| Feb 23, 2018 | 1.27 | = | 61.79 | ÷ | 48.80 | 48.80 | = | 5,098,697 | ÷ | 104,474,656 | |
| Feb 22, 2017 | 0.67 | = | 33.57 | ÷ | 50.10 | 50.10 | = | 5,212,687 | ÷ | 104,044,691 | |
| Feb 24, 2016 | 1.27 | = | 69.45 | ÷ | 54.52 | 54.52 | = | 5,548,487 | ÷ | 101,767,670 | |
| Feb 25, 2015 | 1.17 | = | 58.54 | ÷ | 50.13 | 50.13 | = | 5,027,487 | ÷ | 100,291,843 | |
| Feb 26, 2014 | 1.17 | = | 52.74 | ÷ | 45.25 | 45.25 | = | 4,503,117 | ÷ | 99,512,794 | |
| Feb 27, 2013 | 0.65 | = | 27.04 | ÷ | 41.37 | 41.37 | = | 3,605,526 | ÷ | 87,156,517 | |
| Feb 29, 2012 | 0.77 | = | 32.30 | ÷ | 42.13 | 42.13 | = | 3,643,863 | ÷ | 86,485,999 | |
| Feb 28, 2011 | 3.66 | = | 147.39 | ÷ | 40.22 | 40.22 | = | 3,454,945 | ÷ | 85,895,081 | |
| Feb 22, 2010 | 3.63 | = | 113.09 | ÷ | 31.13 | 31.13 | = | 2,652,787 | ÷ | 85,229,228 | |
| Feb 25, 2009 | 5.81 | = | 107.65 | ÷ | 18.53 | 18.53 | = | 1,513,042 | ÷ | 81,643,905 | |
| Feb 21, 2008 | 15.17 | = | 211.59 | ÷ | 13.95 | 13.95 | = | 1,097,267 | ÷ | 78,649,834 | |
| Mar 16, 2007 | 9.06 | = | 51.52 | ÷ | 5.69 | 5.69 | = | 411,440 | ÷ | 72,363,218 |
Based on: 10-K (reporting date: 2023-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of First Solar Inc. Annual Report.
The financial data reveals a significant divergence between the volatility of the share price and the steady growth of the book value per share (BVPS) over the analyzed period. While the share price experienced dramatic fluctuations, the BVPS exhibited a consistent long-term upward trajectory before stabilizing in the latter years.
- Price to Book Value (P/BV) Cycle
- The P/BV ratio indicates three distinct market valuation phases. An initial period of high speculation and premium valuation occurred between 2007 and 2011, peaking at 15.17 in February 2008. This was followed by a prolonged period of contraction and undervaluation from 2012 to 2017, where the ratio frequently dropped below 1.0, reaching a minimum of 0.65 in February 2013. A third phase of re-valuation began after 2021, with the ratio climbing to 3.09 by February 2023, suggesting a renewed market premium on the company's assets.
- Book Value per Share (BVPS) Growth
- A sustained increase in BVPS is observed from 2007 to 2016, rising from 5.69 USD to 54.52 USD. This indicates a strong accumulation of net assets and retained earnings over a decade. From 2017 through 2024, the BVPS entered a period of relative stability, fluctuating within a narrow range between 48.33 USD and 62.59 USD, showing a more mature equity base.
- Share Price Volatility vs. Fundamental Value
- The share price demonstrated extreme volatility compared to the underlying book value. The peak price of 211.59 USD in 2008 represented a massive premium over the BVPS of 13.95 USD. Conversely, during the 2012-2013 trough, the share price fell to 27.04 USD despite the BVPS having increased to 41.37 USD. This inverse relationship during the 2012-2013 period underscores a phase where the market valued the company significantly below its accounting net asset value.
- Recent Valuation Trends
- In the most recent observations from 2022 to 2024, there is a notable increase in the P/BV ratio, moving from 1.35 in 2022 to 2.32 in 2024. This upward shift is driven primarily by a surge in the share price, which rose to 169.14 USD in February 2023, while the BVPS remained relatively stable at 54.74 USD. This suggests that current market pricing is increasingly driven by growth expectations rather than just the tangible book value of the assets.
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Comparison to Competitors
First Solar Inc., P/BV, long-term trends, comparison to competitors
| First Solar Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2024 | 2.32 | 4.85 | 2.53 | 8.23 | 21.59 | 1.75 | 23.25 | 10.58 | 2.24 | 1.74 | 26.03 | 5.72 | 8.57 |
| Feb 28, 2023 | 3.09 | 2.32 | 2.35 | 7.25 | 10.23 | 1.15 | 40.04 | 10.10 | 3.52 | 1.15 | 24.95 | 7.00 | 11.33 |
| Mar 1, 2022 | 1.35 | 19.21 | 2.50 | 10.60 | 10.50 | 2.21 | 15.98 | 13.64 | 3.84 | 1.79 | 20.14 | 15.59 | 11.87 |
| Feb 26, 2021 | 1.56 | 17.77 | 4.22 | 7.63 | 7.40 | 2.84 | 11.83 | 10.55 | 1.45 | 1.50 | 15.49 | 24.00 | 17.02 |
| Feb 21, 2020 | 1.05 | 20.46 | 3.61 | 6.67 | 5.09 | 3.78 | 8.15 | 6.40 | 1.75 | 1.40 | 10.09 | 19.69 | 13.79 |
| Feb 22, 2019 | 1.08 | 18.30 | 3.02 | 4.73 | 3.74 | 2.94 | 11.40 | 4.28 | 2.52 | 1.49 | 19.60 | 82.57 | 11.20 |
| Feb 23, 2018 | 1.27 | 19.87 | 3.22 | 5.94 | 5.28 | 3.08 | 10.50 | 3.82 | 1.96 | 2.51 | 10.51 | 2.56 | 9.89 |
| Feb 22, 2017 | 0.67 | 31.66 | 4.35 | 4.93 | 3.84 | 2.60 | 17.57 | 2.45 | 1.39 | 1.48 | 3.98 | 3.12 | 7.36 |
| Feb 24, 2016 | 1.27 | — | 3.72 | 2.87 | 8.24 | 2.21 | 19.59 | 2.23 | 1.50 | 1.47 | 2.84 | 2.88 | 5.30 |
| Feb 25, 2015 | 1.17 | 12.72 | 3.64 | 3.80 | 7.98 | 2.91 | 3.26 | 2.29 | 1.65 | 3.22 | 2.19 | 3.28 | 5.94 |
| Feb 26, 2014 | 1.17 | 4.94 | 3.28 | 2.82 | 4.46 | 2.11 | 2.78 | 1.69 | 1.18 | 1.92 | 1.63 | 3.26 | 4.46 |
| Feb 27, 2013 | 0.65 | 3.45 | 2.90 | 1.79 | 3.25 | 2.04 | 2.61 | 1.24 | 1.82 | 0.72 | 2.20 | 2.95 | 3.45 |
| Feb 29, 2012 | 0.77 | 3.28 | 2.62 | 1.65 | 3.51 | 2.90 | 2.11 | 1.80 | 1.85 | 0.64 | 3.27 | 3.25 | 3.48 |
| Feb 28, 2011 | 3.66 | 6.21 | 3.36 | 2.35 | 4.24 | 2.46 | 2.41 | 2.63 | 2.96 | 0.96 | 3.74 | 3.54 | 4.00 |
| Feb 22, 2010 | 3.63 | 8.23 | 3.43 | 2.53 | 3.78 | 2.76 | 2.44 | 2.67 | 1.53 | 1.25 | 2.27 | 3.61 | 3.10 |
| Feb 25, 2009 | 5.81 | — | 2.04 | 1.84 | — | 1.72 | 2.20 | 2.69 | 1.96 | 0.42 | 4.24 | 3.05 | 2.09 |
| Feb 21, 2008 | 15.17 | 1.44 | 3.99 | 3.14 | — | 2.76 | 3.26 | 4.05 | 3.29 | 0.96 | 5.06 | 4.11 | 4.14 |
| Mar 16, 2007 | 9.06 | 1.42 | 3.36 | 3.81 | — | 3.27 | 2.75 | 4.19 | 5.52 | 1.30 | 5.75 | 4.48 | 3.93 |
Based on: 10-K (reporting date: 2023-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
First Solar Inc., P/BV, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| First Solar Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 27, 2024 | 2.32 | 6.26 |
| Feb 28, 2023 | 3.09 | 5.10 |
| Mar 1, 2022 | 1.35 | 6.22 |
| Feb 26, 2021 | 1.56 | 5.97 |
| Feb 21, 2020 | 1.05 | 5.04 |
| Feb 22, 2019 | 1.08 | 4.59 |
| Feb 23, 2018 | 1.27 | 4.04 |
| Feb 22, 2017 | 0.67 | 3.35 |
| Feb 24, 2016 | 1.27 | 2.84 |
| Feb 25, 2015 | 1.17 | 3.36 |
| Feb 26, 2014 | 1.17 | 2.64 |
| Feb 27, 2013 | 0.65 | 2.32 |
| Feb 29, 2012 | 0.77 | 2.71 |
| Feb 28, 2011 | 3.66 | 2.82 |
| Feb 22, 2010 | 3.63 | 2.88 |
| Feb 25, 2009 | 5.81 | 2.07 |
| Feb 21, 2008 | 15.17 | 3.09 |
| Mar 16, 2007 | 9.06 | 3.39 |
Based on: 10-K (reporting date: 2023-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Industry (Information Technology)
First Solar Inc., P/BV, long-term trends, comparison to industry (information technology)
| First Solar Inc. | Information Technology | |
|---|---|---|
| Feb 27, 2024 | 2.32 | 11.29 |
| Feb 28, 2023 | 3.09 | 10.25 |
| Mar 1, 2022 | 1.35 | 12.37 |
| Feb 26, 2021 | 1.56 | 10.94 |
| Feb 21, 2020 | 1.05 | 8.41 |
| Feb 22, 2019 | 1.08 | 7.00 |
| Feb 23, 2018 | 1.27 | 5.46 |
| Feb 22, 2017 | 0.67 | 4.53 |
| Feb 24, 2016 | 1.27 | 4.30 |
| Feb 25, 2015 | 1.17 | 4.36 |
| Feb 26, 2014 | 1.17 | 3.50 |
| Feb 27, 2013 | 0.65 | 3.75 |
| Feb 29, 2012 | 0.77 | 3.98 |
| Feb 28, 2011 | 3.66 | 4.16 |
| Feb 22, 2010 | 3.63 | 4.31 |
| Feb 25, 2009 | 5.81 | 4.00 |
| Feb 21, 2008 | 15.17 | 8.64 |
| Mar 16, 2007 | 9.06 | 7.24 |
Based on: 10-K (reporting date: 2023-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).