Price to Book Value (P/BV)
since 2005
Calculation
Western Digital Corp., 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 22, 2023 | 1.11 | = | 40.42 | ÷ | 36.42 | 36.42 | = | 11,723 | ÷ | 321,895,961 | |
| Aug 25, 2022 | 1.23 | = | 47.91 | ÷ | 38.86 | 38.86 | = | 12,221 | ÷ | 314,492,541 | |
| Aug 27, 2021 | 1.82 | = | 63.24 | ÷ | 34.72 | 34.72 | = | 10,721 | ÷ | 308,748,049 | |
| Aug 28, 2020 | 1.20 | = | 37.84 | ÷ | 31.57 | 31.57 | = | 9,551 | ÷ | 302,525,787 | |
| Aug 27, 2019 | 1.56 | = | 52.66 | ÷ | 33.67 | 33.67 | = | 9,967 | ÷ | 296,003,875 | |
| Aug 24, 2018 | 1.61 | = | 63.81 | ÷ | 39.58 | 39.58 | = | 11,531 | ÷ | 291,356,809 | |
| Aug 29, 2017 | 2.33 | = | 90.07 | ÷ | 38.72 | 38.72 | = | 11,418 | ÷ | 294,875,015 | |
| Aug 29, 2016 | 1.20 | = | 47.08 | ÷ | 39.21 | 39.21 | = | 11,145 | ÷ | 284,264,636 | |
| Aug 21, 2015 | 1.99 | = | 79.44 | ÷ | 40.01 | 40.01 | = | 9,219 | ÷ | 230,402,975 | |
| Aug 15, 2014 | 2.66 | = | 100.62 | ÷ | 37.78 | 37.78 | = | 8,842 | ÷ | 234,011,170 | |
| Aug 19, 2013 | 1.93 | = | 64.20 | ÷ | 33.30 | 33.30 | = | 7,893 | ÷ | 236,996,062 | |
| Aug 20, 2012 | 1.46 | = | 45.32 | ÷ | 31.02 | 31.02 | = | 7,669 | ÷ | 247,262,090 | |
| Aug 12, 2011 | 1.30 | = | 30.70 | ÷ | 23.53 | 23.53 | = | 5,488 | ÷ | 233,191,524 | |
| Aug 13, 2010 | 1.19 | = | 24.46 | ÷ | 20.53 | 20.53 | = | 4,709 | ÷ | 229,321,305 | |
| Aug 14, 2009 | 2.20 | = | 31.20 | ÷ | 14.21 | 14.21 | = | 3,192 | ÷ | 224,685,608 | |
| Aug 20, 2008 | 2.34 | = | 28.53 | ÷ | 12.17 | 12.17 | = | 2,696 | ÷ | 221,485,710 | |
| Aug 28, 2007 | 2.73 | = | 21.42 | ÷ | 7.84 | 7.84 | = | 1,716 | ÷ | 219,000,000 | |
| Nov 20, 2006 | 3.98 | = | 20.79 | ÷ | 5.22 | 5.22 | = | 1,157 | ÷ | 221,700,000 | |
| Sep 14, 2005 | 4.17 | = | 13.53 | ÷ | 3.24 | 3.24 | = | 702 | ÷ | 216,600,000 |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Western Digital Corp. Annual Report.
An analysis of the valuation metrics from 2005 to 2023 reveals a long-term compression in the Price to Book Value (P/BV) ratio, transitioning from a high premium in the mid-2000s to a valuation closely aligned with book value by the early 2020s.
- Price to Book Value (P/BV) Trajectory
- The P/BV ratio exhibited a pronounced downward trend during the initial phase of the period, falling from 4.17 in 2005 to a low of 1.19 in 2010. A period of recovery followed between 2011 and 2014, with the ratio peaking at 2.66. From 2015 onward, the ratio remained volatile, characterized by intermittent spikes, such as the 2.33 reached in 2017, before trending toward a low of 1.11 by 2023.
- Book Value per Share (BVPS) Evolution
- BVPS showed consistent and aggressive growth for the first ten years, increasing from 3.24 in 2005 to 20.53 in 2010, and continuing upward to a peak of 40.01 in 2015. Following 2015, the growth in book value stalled, with the figure fluctuating between 31.57 and 39.58 over the subsequent eight years, indicating a stabilization or slight contraction of the company's net asset base per share.
- Share Price Dynamics and Valuation Impact
- The share price experienced significant growth and volatility, rising from 13.53 in 2005 to a peak of 100.62 in 2014. The peak P/BV ratio in 2014 was driven primarily by this share price surge. However, the subsequent decline in share price to 40.42 by 2023, occurring alongside a plateau in BVPS, has resulted in the current compressed valuation multiple.
The overall data indicates that while the company successfully expanded its book value significantly over the long term, the market's valuation premium relative to that book value has diminished, shifting from a high-growth multiple to a more conservative asset-based valuation.
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Comparison to Competitors
Western Digital Corp., P/BV, long-term trends, comparison to competitors
| Western Digital Corp. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Aug 22, 2023 | 1.11 | 44.21 | 11.50 | 5.19 | — | 2.62 | 6.85 |
| Aug 25, 2022 | 1.23 | 48.89 | 8.87 | 4.69 | — | 3.31 | 2.54 |
| Aug 27, 2021 | 1.82 | 38.96 | 10.05 | 5.99 | 27.38 | 3.19 | 1.65 |
| Aug 28, 2020 | 1.20 | 28.33 | 7.15 | 4.57 | — | 3.61 | 1.35 |
| Aug 27, 2019 | 1.56 | 12.21 | 5.91 | 6.12 | — | 2.77 | 1.21 |
| Aug 24, 2018 | 1.61 | 8.93 | 9.33 | 5.00 | — | 4.66 | 1.33 |
| Aug 29, 2017 | 2.33 | 6.61 | 11.10 | 2.38 | — | 5.57 | 1.28 |
| Aug 29, 2016 | 1.20 | 4.81 | 7.63 | 2.48 | — | 4.26 | 1.44 |
| Aug 21, 2015 | 1.99 | 5.57 | 5.86 | 2.23 | — | 2.63 | 2.08 |
| Aug 15, 2014 | 2.66 | 5.53 | 8.22 | 2.24 | — | — | 2.56 |
| Aug 19, 2013 | 1.93 | 3.82 | — | 2.19 | — | — | 1.51 |
| Aug 20, 2012 | 1.46 | 4.74 | — | 1.97 | — | — | 1.63 |
| Aug 12, 2011 | 1.30 | 4.86 | — | 1.86 | — | — | 1.78 |
| Aug 13, 2010 | 1.19 | 5.91 | — | 2.73 | — | — | 1.64 |
| Aug 14, 2009 | 2.20 | 6.39 | — | 3.46 | — | — | 1.56 |
| Aug 20, 2008 | 2.34 | 4.37 | — | 3.83 | — | — | 2.20 |
| Aug 28, 2007 | 2.73 | 9.90 | — | 6.20 | — | — | 2.20 |
| Nov 20, 2006 | 3.98 | 7.30 | — | 5.80 | — | — | — |
| Sep 14, 2005 | 4.17 | 8.09 | — | 4.92 | — | — | — |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
Comparison to Sector (Technology Hardware & Equipment)
Western Digital Corp., P/BV, long-term trends, comparison to sector (technology hardware & equipment)
| Western Digital Corp. | Technology Hardware & Equipment | |
|---|---|---|
| Aug 22, 2023 | 1.11 | 27.27 |
| Aug 25, 2022 | 1.23 | 28.45 |
| Aug 27, 2021 | 1.82 | 24.77 |
| Aug 28, 2020 | 1.20 | 19.33 |
| Aug 27, 2019 | 1.56 | 11.13 |
| Aug 24, 2018 | 1.61 | 7.77 |
| Aug 29, 2017 | 2.33 | 5.24 |
| Aug 29, 2016 | 1.20 | 4.05 |
| Aug 21, 2015 | 1.99 | 4.45 |
| Aug 15, 2014 | 2.66 | 4.43 |
| Aug 19, 2013 | 1.93 | 3.29 |
| Aug 20, 2012 | 1.46 | 3.89 |
| Aug 12, 2011 | 1.30 | 3.71 |
| Aug 13, 2010 | 1.19 | 4.38 |
| Aug 14, 2009 | 2.20 | 4.68 |
| Aug 20, 2008 | 2.34 | 4.03 |
| Aug 28, 2007 | 2.73 | 7.36 |
| Nov 20, 2006 | 3.98 | 6.24 |
| Sep 14, 2005 | 4.17 | 5.69 |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
Comparison to Industry (Information Technology)
Western Digital Corp., P/BV, long-term trends, comparison to industry (information technology)
| Western Digital Corp. | Information Technology | |
|---|---|---|
| Aug 22, 2023 | 1.11 | 11.29 |
| Aug 25, 2022 | 1.23 | 10.25 |
| Aug 27, 2021 | 1.82 | 12.37 |
| Aug 28, 2020 | 1.20 | 10.94 |
| Aug 27, 2019 | 1.56 | 8.41 |
| Aug 24, 2018 | 1.61 | 7.00 |
| Aug 29, 2017 | 2.33 | 5.46 |
| Aug 29, 2016 | 1.20 | 4.53 |
| Aug 21, 2015 | 1.99 | 4.30 |
| Aug 15, 2014 | 2.66 | 4.36 |
| Aug 19, 2013 | 1.93 | 3.50 |
| Aug 20, 2012 | 1.46 | 3.75 |
| Aug 12, 2011 | 1.30 | 3.98 |
| Aug 13, 2010 | 1.19 | 4.16 |
| Aug 14, 2009 | 2.20 | 4.31 |
| Aug 20, 2008 | 2.34 | 4.00 |
| Aug 28, 2007 | 2.73 | 8.64 |
| Nov 20, 2006 | 3.98 | 7.24 |
| Sep 14, 2005 | 4.17 | 7.40 |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).