Anadarko Petroleum Corp. (NYSE:APC)

An analysis of the price-to-book value (P/BV) ratio from 2006 to 2017 reveals a trajectory characterized by an initial extreme anomaly, a period of relative stability, and a final divergence between market price and book value.

Initial Volatility and Normalization (2006–2009)

The period began with a significant valuation outlier in 2006, where the P/BV ratio reached 44.64, primarily driven by an exceptionally low book value per share of 1.14 US$. A rapid normalization occurred by 2007, with the ratio falling to 1.25 as book value per share increased substantially to 32.20 US$. A subsequent decline in market sentiment led to a P/BV ratio of 0.87 in 2009, indicating that the company traded below its accounting book value during that fiscal year.

Valuation Stability (2010–2015)

Between 2010 and 2015, the P/BV ratio exhibited a consistent range, fluctuating between a low of 1.71 and a high of 2.36. During this interval, share prices remained relatively elevated, peaking at 85.45 US$ in 2015. The book value per share grew steadily during the first half of this period, reaching 43.39 US$ in 2014, before experiencing a slight contraction to 38.93 US$ by 2015.

Recent Divergence and Peak Valuation (2016–2017)

A sharp correction is observed in 2016, as the share price fell to 40.50 US$ and the P/BV ratio contracted to 1.61. However, by 2017, a significant divergence emerged; while the book value per share continued to decline to 21.85 US$, the share price recovered to 66.77 US$. This resulted in the P/BV ratio rising to 3.06, the highest level recorded since the normalization period began in 2007, suggesting an increased market premium over the company's net asset value.