Price to Book Value (P/BV)
since 2020
Calculation
Carrier Global Corp., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Equity attributable to common shareowners1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 7, 2023 | 4.77 | = | 44.39 | ÷ | 9.30 | 9.30 | = | 7,758 | ÷ | 834,187,942 | |
| Feb 8, 2022 | 5.82 | = | 46.06 | ÷ | 7.91 | 7.91 | = | 6,767 | ÷ | 855,514,035 | |
| Feb 9, 2021 | 5.18 | = | 37.25 | ÷ | 7.19 | 7.19 | = | 6,252 | ÷ | 869,213,146 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Carrier Global Corp. Annual Report.
The financial data from February 2021 through February 2023 reveals a divergence between the growth of the underlying book value and the market's valuation multiple.
- Book Value Per Share (BVPS)
- A steady and uninterrupted increase in BVPS is evident, rising from 7.19 US$ in 2021 to 7.91 US$ in 2022, and reaching 9.30 US$ in 2023. This upward trend indicates consistent growth in the net asset value attributable to each share over the observed period.
- Share Price Trends
- The share price exhibited significant growth between February 2021 and February 2022, rising from 37.25 US$ to 46.06 US$. A subsequent slight contraction occurred by February 2023, with the price settling at 44.39 US$.
- Price to Book Value (P/BV) Dynamics
- The P/BV ratio demonstrated a non-linear trend, increasing from 5.18 in 2021 to a peak of 5.82 in 2022 before declining to 4.77 in 2023. The expansion seen in 2022 reflects a period where share price appreciation outpaced the growth of the book value. The contraction to 4.77 in 2023 was driven by the simultaneous occurrence of a decreasing share price and a continuing increase in the book value per share, resulting in the lowest valuation multiple of the three-year period.
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Comparison to Competitors
Carrier Global Corp., P/BV, long-term trends, comparison to competitors
| Carrier Global Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 7, 2023 | 4.77 | — | 8.09 | 4.04 | 2.43 | 8.02 | 12.67 | 1.97 |
| Feb 8, 2022 | 5.82 | — | 6.62 | 3.63 | 2.64 | 6.91 | 9.62 | 1.95 |
| Feb 9, 2021 | 5.18 | — | 7.20 | 3.54 | 2.89 | 8.07 | 15.27 | 1.53 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Sector (Capital Goods)
Carrier Global Corp., P/BV, long-term trends, comparison to sector (capital goods)
| Carrier Global Corp. | Capital Goods | |
|---|---|---|
| Feb 7, 2023 | 4.77 | 5.31 |
| Feb 8, 2022 | 5.82 | 4.77 |
| Feb 9, 2021 | 5.18 | 5.05 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Industry (Industrials)
Carrier Global Corp., P/BV, long-term trends, comparison to industry (industrials)
| Carrier Global Corp. | Industrials | |
|---|---|---|
| Feb 7, 2023 | 4.77 | 5.50 |
| Feb 8, 2022 | 5.82 | 5.44 |
| Feb 9, 2021 | 5.18 | 5.89 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).