Becton, Dickinson & Co. (NYSE:BDX)

The analysis of the financial data over the given period reveals several notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio for the company.

Share Price Trend

The share price exhibited an overall upward trajectory from 2005 through 2021, starting at $58.13 and reaching $244.46 by the end of the period. Despite this general growth, there were fluctuations along the timeline:

• An initial increase from 2005 ($58.13) through 2007 ($83.52).
• A decrease observed in 2008 to $63.59, likely influenced by broader market conditions during that year.
• A sustained recovery and growth phase from 2009 ($75.53) onwards, peaking significantly in 2018 at $242.04 and maintaining elevated levels through 2021.

Book Value Per Share (BVPS) Trend

The BVPS showed a consistent increase over the years, beginning at $13.03 in 2005 and rising steadily to $83.36 in 2021. This represents a substantial growth in the company's net asset value per share. The growth in BVPS was generally steady, with no significant declines, indicating ongoing accumulation of equity or retained earnings. Noteworthy:

• A relatively rapid increase starting around 2016 (BVPS of $35.95) through 2019 ($78.26), reflecting strong asset growth or capital retention during this period.
• Only minor fluctuations towards the end of the period, with slight stagnation in 2019 and 2020, followed by a modest rise again in 2021.

Price-to-Book Value (P/BV) Ratio Trend

The P/BV ratio experienced notable variability across the timeline:

• High initial ratios above 4.4 from 2005 through 2007, indicating the market priced the shares at a significant premium to book value.
• A marked decline to a low of 3.13 in 2008, coinciding with the drop in share price that year, pointing to reduced market optimism or heightened risk perception.
• Subsequent years saw an inconsistent pattern, with the ratio fluctuating between approximately 3.0 and 5.4, peaking in 2014 at 5.37.
• Post-2014, the ratio generally declined to a lower range near 2.8 to 3.3 by 2021, reflecting a market valuation more closely aligned with book value or possibly a relative undervaluation compared to earlier years.

In summary, the company demonstrated strong increases in intrinsic value as represented by BVPS, with the market valuation (share price) generally following this upward trend but with greater volatility. The fluctuations in the P/BV ratio suggest changing investor sentiment, valuation perspectives, or external market conditions affecting the premium placed on the company's equity. The decline of the P/BV ratio in recent years despite rising BVPS and stable to modestly increasing share prices may indicate more conservative market valuations or maturation of the company's growth profile.