Price to Book Value (P/BV)
since 2005
Calculation
Allergan PLC, P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 18, 2020 | 1.12 | = | 198.00 | ÷ | 176.82 | 176.82 | = | 58,173,600 | ÷ | 329,002,015 | |
| Feb 15, 2019 | 0.71 | = | 139.07 | ÷ | 195.76 | 195.76 | = | 65,114,100 | ÷ | 332,614,474 | |
| Feb 16, 2018 | 0.73 | = | 164.04 | ÷ | 223.48 | 223.48 | = | 73,821,100 | ÷ | 330,320,420 | |
| Feb 24, 2017 | 1.08 | = | 245.37 | ÷ | 227.29 | 227.29 | = | 76,192,700 | ÷ | 335,224,713 | |
| Feb 26, 2016 | 1.54 | = | 298.07 | ÷ | 194.06 | 194.06 | = | 76,591,400 | ÷ | 394,687,384 | |
| Feb 18, 2015 | 2.67 | = | 284.00 | ÷ | 106.41 | 106.41 | = | 28,331,100 | ÷ | 266,252,295 | |
| Feb 25, 2014 | 4.11 | = | 225.00 | ÷ | 54.72 | 54.72 | = | 9,532,100 | ÷ | 174,199,744 | |
| Feb 28, 2013 | 2.84 | = | 85.16 | ÷ | 29.99 | 29.99 | = | 3,833,800 | ÷ | 127,832,241 | |
| Feb 16, 2012 | 2.15 | = | 60.31 | ÷ | 28.02 | 28.02 | = | 3,563,600 | ÷ | 127,165,346 | |
| Feb 22, 2011 | 2.10 | = | 54.90 | ÷ | 26.08 | 26.08 | = | 3,281,700 | ÷ | 125,827,379 | |
| Mar 1, 2010 | 1.64 | = | 40.12 | ÷ | 24.48 | 24.48 | = | 3,023,100 | ÷ | 123,516,219 | |
| Feb 23, 2009 | 1.44 | = | 29.10 | ÷ | 20.15 | 20.15 | = | 2,108,585 | ÷ | 104,627,327 | |
| Feb 25, 2008 | 1.58 | = | 28.19 | ÷ | 17.84 | 17.84 | = | 1,849,465 | ÷ | 103,657,619 | |
| Mar 1, 2007 | 1.57 | = | 25.71 | ÷ | 16.39 | 16.39 | = | 1,680,388 | ÷ | 102,500,489 | |
| Mar 10, 2006 | 1.56 | = | 29.55 | ÷ | 18.95 | 18.95 | = | 2,104,241 | ÷ | 111,029,721 |
Based on: 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 Allergan PLC Annual Report.
The financial trajectory of the company between 2006 and 2020 is characterized by a significant expansion and subsequent contraction of the Price to Book Value (P/BV) ratio. The valuation evolved from a period of relative stability to a peak of high market premium, eventually descending to levels where the company traded below its accounting book value before a slight recovery in 2020.
- P/BV Ratio Volatility
- A period of stability is observed from 2006 to 2009, with the P/BV ratio remaining within a narrow range of 1.44 to 1.64. Starting in 2010, a consistent upward trend emerged, culminating in a peak ratio of 4.11 in 2014. This indicates a period where the market attributed a high premium to the company's net assets. Following 2014, a sharp reversal occurred, with the ratio declining annually to reach a low of 0.71 in 2019, signifying that the market valuation fell below the book value of the company.
- Book Value per Share (BVPS) Growth
- The BVPS demonstrated a long-term growth trend, increasing from 18.95 in 2006 to a peak of 227.29 in 2017. The most aggressive growth in book value occurred between 2014 and 2017, during which BVPS rose from 54.72 to 227.29. However, a decline in book value followed after 2017, with the figure descending to 176.82 by February 2020.
- Share Price Correlation
- Share price movements were the primary driver of the P/BV fluctuations. While the share price grew substantially from 29.55 in 2006 to a high of 298.07 in 2016, the subsequent price drop to 139.07 by 2019 outpaced the changes in book value. This divergence explains the compression of the P/BV ratio below 1.0 during the 2018-2019 period. The recovery of the share price to 198.00 in 2020 resulted in the P/BV ratio returning to a positive premium of 1.12.
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Comparison to Competitors
Allergan PLC, P/BV, long-term trends, comparison to competitors
| Allergan PLC | 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 18, 2020 | 1.12 | — | 13.84 | 2.80 | 3.72 | 51.67 | 3.93 | 6.61 | 7.83 | 3.00 | 3.79 | 4.16 | 10.23 |
| Feb 15, 2019 | 0.71 | — | 9.41 | 5.89 | 2.80 | 12.87 | 3.89 | 6.08 | 7.79 | 3.80 | 5.07 | 3.75 | 10.68 |
| Feb 16, 2018 | 0.73 | 36.95 | 5.02 | 8.88 | 2.58 | 7.33 | 5.15 | 5.79 | 4.30 | 2.94 | 5.66 | 3.30 | 20.14 |
| Feb 24, 2017 | 1.08 | 21.24 | 4.14 | 5.66 | 2.56 | 6.33 | 4.88 | 4.72 | 4.51 | 3.40 | 8.58 | 2.86 | 18.42 |
| Feb 26, 2016 | 1.54 | 22.17 | 3.94 | 7.04 | 2.53 | 5.51 | 6.59 | 4.07 | 3.15 | 2.84 | 10.53 | 2.42 | 22.38 |
| Feb 18, 2015 | 2.67 | 56.09 | 4.59 | 6.72 | 2.63 | 5.14 | 10.08 | 4.01 | 3.42 | 2.95 | 16.22 | 2.51 | 25.60 |
| Feb 25, 2014 | 4.11 | 18.05 | 4.30 | 5.92 | 2.38 | 3.69 | 11.36 | 3.50 | 3.35 | 2.69 | 16.74 | 2.90 | 14.77 |
| Feb 28, 2013 | 2.84 | 18.06 | 3.57 | 4.40 | 2.23 | 4.15 | 7.01 | 3.29 | 2.44 | 2.42 | 12.91 | 1.72 | 10.08 |
| Feb 16, 2012 | 2.15 | — | 2.83 | 3.50 | 2.17 | 3.35 | 5.08 | 3.13 | 2.14 | 1.95 | 19.19 | 1.38 | 10.05 |
| Feb 22, 2011 | 2.10 | — | 2.04 | 2.76 | 2.39 | 3.21 | 5.29 | 2.88 | 1.85 | 1.75 | 6.42 | 1.41 | 16.16 |
| Mar 1, 2010 | 1.64 | — | 2.46 | 2.88 | 2.07 | 4.17 | 6.74 | 3.45 | 1.97 | 1.57 | 5.49 | 1.29 | 7.45 |
| Feb 23, 2009 | 1.44 | — | 2.48 | 3.29 | 1.69 | 5.01 | 9.83 | 3.56 | 2.72 | 1.44 | 2.94 | 1.02 | 21.09 |
| Feb 25, 2008 | 1.58 | — | 2.77 | 4.22 | 2.62 | 4.16 | 11.76 | 4.17 | 5.38 | 2.32 | 3.24 | 1.62 | 8.92 |
| Mar 1, 2007 | 1.57 | — | 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 | 1.56 | — | 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: 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)
Allergan PLC, P/BV, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Allergan PLC | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 18, 2020 | 1.12 | 5.82 |
| Feb 15, 2019 | 0.71 | 6.02 |
| Feb 16, 2018 | 0.73 | 5.14 |
| Feb 24, 2017 | 1.08 | 4.58 |
| Feb 26, 2016 | 1.54 | 4.15 |
| Feb 18, 2015 | 2.67 | 4.47 |
| Feb 25, 2014 | 4.11 | 3.97 |
| Feb 28, 2013 | 2.84 | 3.21 |
| Feb 16, 2012 | 2.15 | 2.55 |
| Feb 22, 2011 | 2.10 | 2.25 |
| Mar 1, 2010 | 1.64 | 2.37 |
| Feb 23, 2009 | 1.44 | 2.60 |
| Feb 25, 2008 | 1.58 | 3.42 |
| Mar 1, 2007 | 1.57 | 3.82 |
| Mar 10, 2006 | 1.56 | 4.00 |
Based on: 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)
Allergan PLC, P/BV, long-term trends, comparison to industry (health care)
| Allergan PLC | Health Care | |
|---|---|---|
| Feb 18, 2020 | 1.12 | 5.14 |
| Feb 15, 2019 | 0.71 | 5.17 |
| Feb 16, 2018 | 0.73 | 4.55 |
| Feb 24, 2017 | 1.08 | 4.06 |
| Feb 26, 2016 | 1.54 | 3.62 |
| Feb 18, 2015 | 2.67 | 4.10 |
| Feb 25, 2014 | 4.11 | 3.51 |
| Feb 28, 2013 | 2.84 | 2.87 |
| Feb 16, 2012 | 2.15 | 2.51 |
| Feb 22, 2011 | 2.10 | 2.24 |
| Mar 1, 2010 | 1.64 | 2.36 |
| Feb 23, 2009 | 1.44 | 2.65 |
| Feb 25, 2008 | 1.58 | 3.45 |
| Mar 1, 2007 | 1.57 | 3.81 |
| Mar 10, 2006 | 1.56 | 3.97 |
Based on: 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).