Price to Book Value (P/BV)
since 2005
Calculation
Paramount Global, P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Paramount stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2023 | 0.66 | = | 23.50 | ÷ | 35.41 | 35.41 | = | 23,036 | ÷ | 650,516,853 | |
| Feb 15, 2022 | 1.04 | = | 35.99 | ÷ | 34.54 | 34.54 | = | 22,402 | ÷ | 648,584,674 | |
| Feb 24, 2021 | 2.64 | = | 65.60 | ÷ | 24.81 | 24.81 | = | 15,371 | ÷ | 619,606,133 | |
| Feb 20, 2020 | 1.36 | = | 29.29 | ÷ | 21.52 | 21.52 | = | 13,207 | ÷ | 613,739,990 | |
| Feb 15, 2019 | 6.74 | = | 50.64 | ÷ | 7.52 | 7.52 | = | 2,804 | ÷ | 372,969,983 | |
| Feb 20, 2018 | 10.88 | = | 56.25 | ÷ | 5.17 | 5.17 | = | 1,978 | ÷ | 382,719,931 | |
| Feb 17, 2017 | 7.29 | = | 65.69 | ÷ | 9.01 | 9.01 | = | 3,689 | ÷ | 409,535,133 | |
| Feb 16, 2016 | 3.71 | = | 44.92 | ÷ | 12.11 | 12.11 | = | 5,563 | ÷ | 459,540,920 | |
| Feb 13, 2015 | 4.27 | = | 59.83 | ÷ | 14.02 | 14.02 | = | 6,970 | ÷ | 497,272,250 | |
| Feb 14, 2014 | 3.87 | = | 64.96 | ÷ | 16.80 | 16.80 | = | 9,966 | ÷ | 593,378,347 | |
| Feb 15, 2013 | 2.75 | = | 44.64 | ÷ | 16.23 | 16.23 | = | 10,213 | ÷ | 629,160,629 | |
| Feb 23, 2012 | 1.93 | = | 29.44 | ÷ | 15.26 | 15.26 | = | 9,908 | ÷ | 649,083,865 | |
| Feb 25, 2011 | 1.61 | = | 23.54 | ÷ | 14.61 | 14.61 | = | 9,821 | ÷ | 672,399,794 | |
| Feb 25, 2010 | 0.99 | = | 13.14 | ÷ | 13.32 | 13.32 | = | 9,019 | ÷ | 677,041,907 | |
| Feb 25, 2009 | 0.39 | = | 4.98 | ÷ | 12.66 | 12.66 | = | 8,597 | ÷ | 679,091,575 | |
| Feb 28, 2008 | 0.76 | = | 23.96 | ÷ | 31.54 | 31.54 | = | 21,472 | ÷ | 680,717,792 | |
| Mar 1, 2007 | 1.00 | = | 29.97 | ÷ | 29.96 | 29.96 | = | 23,523 | ÷ | 785,045,672 | |
| Mar 16, 2006 | 0.86 | = | 24.22 | ÷ | 28.15 | 28.15 | = | 21,737 | ÷ | 772,311,368 |
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 Paramount Global Annual Report.
The analysis of the Price to Book Value (P/BV) ratio reveals three distinct valuation phases characterized by significant divergence between market pricing and accounting book value. The trajectory shows an initial period of undervaluation, a prolonged phase of extreme premium valuation, and a recent return to a discount relative to book value.
- Initial Volatility and the 2009 Trough
- Between 2006 and 2010, the P/BV ratio remained largely suppressed, trading between 0.39 and 1.00. A significant low occurred in February 2009, where the ratio dropped to 0.39, coinciding with a sharp decline in both share price and book value per share (BVPS). This period indicates a market environment where the company was valued at a significant discount to its net assets.
- Valuation Expansion and Asset Divergence (2011–2019)
- A sustained upward trend in the P/BV ratio began in 2011, peaking at 10.88 in February 2018. This expansion was driven by a combination of rising share prices and a simultaneous erosion of the book value per share, which fell from 14.61 in 2011 to a low of 5.17 in 2018. The extreme peak in 2018 suggests that the market was pricing the company based on intangible assets, future growth expectations, or earnings potential far exceeding the recorded accounting value of its tangible assets.
- Recent Correction and Book Value Recovery (2020–2023)
- From 2020 onward, a sharp reversal in the P/BV trend is observed. This contraction was fueled by a substantial increase in BVPS, which rose from 7.52 in 2019 to 35.41 by February 2023. Concurrently, the share price experienced significant volatility and an overall decline from its 2021 peak. As a result, the P/BV ratio collapsed from 6.74 in 2019 to 0.66 in 2023, indicating that the company is once again trading below its accounting book value.
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Comparison to Competitors
Paramount Global, P/BV, long-term trends, comparison to competitors
| Paramount Global | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 16, 2023 | 0.66 | 5.26 | 2.08 | 3.89 | 7.82 | 1.82 |
| Feb 15, 2022 | 1.04 | 7.78 | 2.36 | 5.18 | 10.83 | 3.11 |
| Feb 24, 2021 | 2.64 | 6.27 | 2.61 | 5.88 | 21.56 | 3.23 |
| Feb 20, 2020 | 1.36 | 4.94 | 2.43 | 5.91 | 19.86 | 2.98 |
| Feb 15, 2019 | 6.74 | 4.49 | 2.31 | 5.65 | 27.41 | 3.45 |
| Feb 20, 2018 | 10.88 | 4.93 | 2.88 | 7.54 | 34.48 | 3.76 |
| Feb 17, 2017 | 7.29 | 3.99 | 3.31 | 6.39 | 22.89 | 3.61 |
| Feb 16, 2016 | 3.71 | 3.91 | 2.78 | 7.02 | 18.18 | 4.41 |
| Feb 13, 2015 | 4.27 | 3.44 | 2.86 | 6.05 | 14.45 | 3.39 |
| Feb 14, 2014 | 3.87 | 4.57 | 2.84 | 10.31 | 18.15 | 2.68 |
| Feb 15, 2013 | 2.75 | 3.46 | 2.14 | 6.02 | 12.37 | 2.17 |
| Feb 23, 2012 | 1.93 | 3.18 | 1.71 | — | 10.68 | 1.61 |
| Feb 25, 2011 | 1.61 | 4.34 | 1.58 | — | 42.87 | 1.86 |
| Feb 25, 2010 | 0.99 | 4.71 | 1.07 | — | 17.50 | 1.70 |
| Feb 25, 2009 | 0.39 | 3.99 | 0.91 | — | 6.03 | 1.07 |
| Feb 28, 2008 | 0.76 | 7.31 | 1.47 | — | 4.47 | 1.95 |
| Mar 1, 2007 | 1.00 | 8.18 | 2.01 | — | 3.72 | 2.14 |
| Mar 16, 2006 | 0.86 | 10.69 | 1.41 | — | 6.17 | 1.88 |
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 (Media & Entertainment)
Paramount Global, P/BV, long-term trends, comparison to sector (media & entertainment)
| Paramount Global | Media & Entertainment | |
|---|---|---|
| Feb 16, 2023 | 0.66 | 4.05 |
| Feb 15, 2022 | 1.04 | 5.68 |
| Feb 24, 2021 | 2.64 | 5.40 |
| Feb 20, 2020 | 1.36 | 4.58 |
| Feb 15, 2019 | 6.74 | 4.52 |
| Feb 20, 2018 | 10.88 | 5.25 |
| Feb 17, 2017 | 7.29 | 4.46 |
| Feb 16, 2016 | 3.71 | 4.41 |
| Feb 13, 2015 | 4.27 | 3.78 |
| Feb 14, 2014 | 3.87 | 4.24 |
| Feb 15, 2013 | 2.75 | 3.00 |
| Feb 23, 2012 | 1.93 | 2.32 |
| Feb 25, 2011 | 1.61 | 2.75 |
| Feb 25, 2010 | 0.99 | 2.45 |
| Feb 25, 2009 | 0.39 | 1.84 |
| Feb 28, 2008 | 0.76 | 3.03 |
| Mar 1, 2007 | 1.00 | 3.23 |
| Mar 16, 2006 | 0.86 | 2.74 |
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 (Communication Services)
Paramount Global, P/BV, long-term trends, comparison to industry (communication services)
| Paramount Global | Communication Services | |
|---|---|---|
| Feb 16, 2023 | 0.66 | 3.38 |
| Feb 15, 2022 | 1.04 | 4.28 |
| Feb 24, 2021 | 2.64 | 4.19 |
| Feb 20, 2020 | 1.36 | 3.70 |
| Feb 15, 2019 | 6.74 | 3.48 |
| Feb 20, 2018 | 10.88 | 4.14 |
| Feb 17, 2017 | 7.29 | 3.97 |
| Feb 16, 2016 | 3.71 | 3.88 |
| Feb 13, 2015 | 4.27 | 3.70 |
| Feb 14, 2014 | 3.87 | 3.60 |
| Feb 15, 2013 | 2.75 | 2.84 |
| Feb 23, 2012 | 1.93 | 2.18 |
| Feb 25, 2011 | 1.61 | 2.24 |
| Feb 25, 2010 | 0.99 | 1.97 |
| Feb 25, 2009 | 0.39 | 1.70 |
| Feb 28, 2008 | 0.76 | 2.33 |
| Mar 1, 2007 | 1.00 | 2.49 |
| Mar 16, 2006 | 0.86 | 2.45 |
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).