Price to Book Value (P/BV)
since 2015
Calculation
Kraft Heinz Co., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2020 | 0.64 | = | 26.88 | ÷ | 42.27 | 42.27 | = | 51,623 | ÷ | 1,221,399,549 | |
| Jun 7, 2019 | 0.68 | = | 28.74 | ÷ | 42.34 | 42.34 | = | 51,657 | ÷ | 1,219,938,804 | |
| Feb 16, 2018 | 1.31 | = | 70.80 | ÷ | 54.18 | 54.18 | = | 66,034 | ÷ | 1,218,801,890 | |
| Feb 23, 2017 | 1.97 | = | 92.94 | ÷ | 47.13 | 47.13 | = | 57,358 | ÷ | 1,217,136,057 | |
| Mar 3, 2016 | 1.63 | = | 77.37 | ÷ | 47.47 | 47.47 | = | 57,685 | ÷ | 1,215,189,526 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
The Price to Book Value (P/BV) ratio exhibited a significant downward trajectory between 2016 and 2020, indicating a substantial contraction in market valuation relative to the company's equity. While the ratio initially peaked in 2017, it entered a period of consistent decline, eventually falling below the 1.0 threshold, which suggests the company began trading at a discount to its accounting book value.
- Share Price Trends
- The share price experienced an initial increase, peaking at US$ 92.94 in February 2017. This was followed by a severe and sustained decline, dropping to US$ 70.80 in 2018 and crashing to US$ 28.74 by June 2019. The trend concluded with a further decrease to US$ 26.88 in February 2020.
- Book Value Per Share (BVPS) Fluctuations
- The BVPS remained more stable than the share price but showed notable volatility. After remaining near US$ 47 between 2016 and 2017, the BVPS rose to a peak of US$ 54.18 in February 2018. A significant reduction occurred by June 2019, with the value falling to US$ 42.34 and remaining nearly flat at US$ 42.27 in February 2020.
- P/BV Ratio Analysis
- The P/BV ratio reached a high of 1.97 in 2017, representing the period of highest market optimism relative to assets. This ratio declined to 1.31 in 2018 and shifted dramatically in 2019, falling to 0.68. By February 2020, the ratio reached 0.64, confirming a trend where the market valuation ceased to command a premium over the book value and instead reflected a significant discount.
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Comparison to Competitors
Kraft Heinz Co., P/BV, long-term trends, comparison to competitors
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 14, 2020 | 0.64 | 13.26 | 3.08 | 13.76 | — |
| Jun 7, 2019 | 0.68 | 11.55 | 2.64 | 11.21 | — |
| Feb 16, 2018 | 1.31 | 11.00 | 2.40 | 14.62 | — |
| Feb 23, 2017 | 1.97 | 7.78 | 2.75 | 13.73 | — |
| Mar 3, 2016 | 1.63 | 7.48 | 2.23 | 11.75 | — |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Kraft Heinz Co., P/BV, long-term trends, comparison to sector (food, beverage & tobacco)
| Kraft Heinz Co. | Food, Beverage & Tobacco | |
|---|---|---|
| Feb 14, 2020 | 0.64 | 13.65 |
| Jun 7, 2019 | 0.68 | 12.22 |
| Feb 16, 2018 | 1.31 | 13.57 |
| Feb 23, 2017 | 1.97 | 12.01 |
| Mar 3, 2016 | 1.63 | 10.24 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
Comparison to Industry (Consumer Staples)
Kraft Heinz Co., P/BV, long-term trends, comparison to industry (consumer staples)
| Kraft Heinz Co. | Consumer Staples | |
|---|---|---|
| Feb 14, 2020 | 0.64 | 7.21 |
| Jun 7, 2019 | 0.68 | 5.76 |
| Feb 16, 2018 | 1.31 | 5.70 |
| Feb 23, 2017 | 1.97 | 5.35 |
| Mar 3, 2016 | 1.63 | 5.06 |
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).