Price to Book Value (P/BV)
since 2005
Calculation
Builders FirstSource Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2023 | 2.36 | = | 84.78 | ÷ | 35.96 | 35.96 | = | 4,962,566 | ÷ | 138,012,302 | |
| Mar 1, 2022 | 2.69 | = | 73.05 | ÷ | 27.17 | 27.17 | = | 4,802,481 | ÷ | 176,772,541 | |
| Feb 26, 2021 | 7.75 | = | 43.27 | ÷ | 5.58 | 5.58 | = | 1,152,783 | ÷ | 206,431,681 | |
| Feb 21, 2020 | 3.76 | = | 26.69 | ÷ | 7.10 | 7.10 | = | 824,953 | ÷ | 116,130,284 | |
| Mar 1, 2019 | 2.71 | = | 14.03 | ÷ | 5.17 | 5.17 | = | 596,338 | ÷ | 115,359,616 | |
| Mar 1, 2018 | 6.43 | = | 21.19 | ÷ | 3.30 | 3.30 | = | 376,209 | ÷ | 114,120,308 | |
| Mar 1, 2017 | 5.26 | = | 14.54 | ÷ | 2.76 | 2.76 | = | 309,620 | ÷ | 112,040,464 | |
| Mar 11, 2016 | 7.15 | = | 9.69 | ÷ | 1.36 | 1.36 | = | 149,195 | ÷ | 110,073,332 | |
| Mar 3, 2015 | 14.71 | = | 6.02 | ÷ | 0.41 | 0.41 | = | 40,200 | ÷ | 98,225,978 | |
| Feb 28, 2014 | 54.88 | = | 8.61 | ÷ | 0.16 | 0.16 | = | 15,368 | ÷ | 97,950,006 | |
| Mar 1, 2013 | 12.17 | = | 6.04 | ÷ | 0.50 | 0.50 | = | 48,096 | ÷ | 96,876,244 | |
| Mar 2, 2012 | 2.95 | = | 3.09 | ÷ | 1.05 | 1.05 | = | 101,224 | ÷ | 96,612,914 | |
| Mar 3, 2011 | 1.49 | = | 2.45 | ÷ | 1.65 | 1.65 | = | 159,505 | ÷ | 96,768,427 | |
| Mar 4, 2010 | 6.26 | = | 3.04 | ÷ | 0.49 | 0.49 | = | 46,947 | ÷ | 96,708,529 | |
| Mar 2, 2009 | 0.53 | = | 1.51 | ÷ | 2.84 | 2.84 | = | 102,474 | ÷ | 36,106,079 | |
| Mar 5, 2008 | 0.99 | = | 6.63 | ÷ | 6.70 | 6.70 | = | 241,547 | ÷ | 36,030,411 | |
| Mar 12, 2007 | 2.36 | = | 17.15 | ÷ | 7.26 | 7.26 | = | 256,864 | ÷ | 35,370,923 | |
| Mar 13, 2006 | 4.38 | = | 22.43 | ÷ | 5.12 | 5.12 | = | 171,135 | ÷ | 33,421,304 |
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 Builders FirstSource Inc. Annual Report.
The financial trajectory between 2006 and 2023 is characterized by extreme volatility in both market valuation and book value, resulting in significant fluctuations in the Price to Book Value (P/BV) ratio. The relationship between share price and book value per share (BVPS) shifted from a period of contraction to a phase of extreme divergence, followed by a period of fundamental strengthening and valuation normalization.
- Initial Contraction and Crisis Phase (2006–2009)
- A consistent downward trend in the P/BV ratio is observed, falling from 4.38 in 2006 to a low of 0.53 by 2009. This decline was driven by a sharp collapse in the share price, which dropped from 22.43 to 1.51, outpacing the initial decline in BVPS. During this period, the market valued the company at a significant discount to its accounting book value.
- Period of Extreme Divergence (2010–2015)
- This interval is marked by an anomalous spike in the P/BV ratio, peaking at 54.88 in 2014. This peak was not driven by an equivalent surge in share price, but rather by a severe erosion of the BVPS, which reached a historical low of 0.16. The extreme ratio indicates a period where market sentiment remained decoupled from the company's equity base, reflecting a negligible book value relative to the trading price.
- Normalization and Equity Rebuilding (2016–2019)
- A corrective trend is evident as the P/BV ratio moderated from 7.15 in 2016 to 2.71 in 2019. This stabilization was supported by a steady recovery in BVPS, which grew from 1.36 to 5.17. The narrowing of the ratio suggests a realignment of market value with the underlying net asset value of the company.
- Expansion and Fundamental Growth (2020–2023)
- Despite a substantial increase in the share price—rising from 26.69 in 2020 to 84.78 in 2023—the P/BV ratio remained relatively stable, ending at 2.36. This is attributed to a concurrent and rapid increase in BVPS, which surged from 7.10 to 35.96. The data indicates that the recent growth in market capitalization has been underpinned by a significant increase in the company's book value, leading to a more conservative valuation multiple compared to the 2010–2015 period.
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Comparison to Competitors
Builders FirstSource Inc., P/BV, long-term trends, comparison to competitors
| Builders FirstSource Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 28, 2023 | 2.36 | — | 8.09 | 4.04 | 2.43 | 8.02 | 12.67 | 1.97 |
| Mar 1, 2022 | 2.69 | — | 6.62 | 3.63 | 2.64 | 6.91 | 9.62 | 1.95 |
| Feb 26, 2021 | 7.75 | — | 7.20 | 3.54 | 2.89 | 8.07 | 15.27 | 1.53 |
| Feb 21, 2020 | 3.76 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Mar 1, 2019 | 2.71 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Mar 1, 2018 | 6.43 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Mar 1, 2017 | 5.26 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Mar 11, 2016 | 7.15 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Mar 3, 2015 | 14.71 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Feb 28, 2014 | 54.88 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Mar 1, 2013 | 12.17 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Mar 2, 2012 | 2.95 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Mar 3, 2011 | 1.49 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Mar 4, 2010 | 6.26 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Mar 2, 2009 | 0.53 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Mar 5, 2008 | 0.99 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Mar 12, 2007 | 2.36 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Mar 13, 2006 | 4.38 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
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 (Capital Goods)
Builders FirstSource Inc., P/BV, long-term trends, comparison to sector (capital goods)
| Builders FirstSource Inc. | Capital Goods | |
|---|---|---|
| Feb 28, 2023 | 2.36 | 5.31 |
| Mar 1, 2022 | 2.69 | 4.77 |
| Feb 26, 2021 | 7.75 | 5.05 |
| Feb 21, 2020 | 3.76 | 6.91 |
| Mar 1, 2019 | 2.71 | 6.11 |
| Mar 1, 2018 | 6.43 | 5.42 |
| Mar 1, 2017 | 5.26 | 4.64 |
| Mar 11, 2016 | 7.15 | 3.45 |
| Mar 3, 2015 | 14.71 | 3.17 |
| Feb 28, 2014 | 54.88 | 2.85 |
| Mar 1, 2013 | 12.17 | 2.77 |
| Mar 2, 2012 | 2.95 | 2.89 |
| Mar 3, 2011 | 1.49 | 2.90 |
| Mar 4, 2010 | 6.26 | 2.29 |
| Mar 2, 2009 | 0.53 | 1.86 |
| Mar 5, 2008 | 0.99 | 3.46 |
| Mar 12, 2007 | 2.36 | 3.91 |
| Mar 13, 2006 | 4.38 | 3.47 |
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 (Industrials)
Builders FirstSource Inc., P/BV, long-term trends, comparison to industry (industrials)
| Builders FirstSource Inc. | Industrials | |
|---|---|---|
| Feb 28, 2023 | 2.36 | 5.50 |
| Mar 1, 2022 | 2.69 | 5.44 |
| Feb 26, 2021 | 7.75 | 5.89 |
| Feb 21, 2020 | 3.76 | 6.28 |
| Mar 1, 2019 | 2.71 | 5.96 |
| Mar 1, 2018 | 6.43 | 5.37 |
| Mar 1, 2017 | 5.26 | 4.89 |
| Mar 11, 2016 | 7.15 | 3.68 |
| Mar 3, 2015 | 14.71 | 3.70 |
| Feb 28, 2014 | 54.88 | 3.14 |
| Mar 1, 2013 | 12.17 | 3.06 |
| Mar 2, 2012 | 2.95 | 3.09 |
| Mar 3, 2011 | 1.49 | 3.05 |
| Mar 4, 2010 | 6.26 | 2.43 |
| Mar 2, 2009 | 0.53 | 2.01 |
| Mar 5, 2008 | 0.99 | 3.45 |
| Mar 12, 2007 | 2.36 | 3.75 |
| Mar 13, 2006 | 4.38 | 3.95 |
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).