Price to Book Value (P/BV)
since 2005
Calculation
General Dynamics Corp., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2020 | 3.97 | = | 186.25 | ÷ | 46.88 | 46.88 | = | 13,577 | ÷ | 289,627,333 | |
| Feb 13, 2019 | 4.26 | = | 173.48 | ÷ | 40.70 | 40.70 | = | 11,732 | ÷ | 288,235,928 | |
| Feb 12, 2018 | 5.44 | = | 209.53 | ÷ | 38.51 | 38.51 | = | 11,435 | ÷ | 296,933,621 | |
| Feb 6, 2017 | 5.05 | = | 183.04 | ÷ | 36.26 | 36.26 | = | 10,976 | ÷ | 302,742,234 | |
| Feb 8, 2016 | 3.83 | = | 132.26 | ÷ | 34.51 | 34.51 | = | 10,738 | ÷ | 311,161,810 | |
| Feb 9, 2015 | 3.84 | = | 136.94 | ÷ | 35.66 | 35.66 | = | 11,829 | ÷ | 331,704,599 | |
| Feb 7, 2014 | 2.46 | = | 104.19 | ÷ | 42.37 | 42.37 | = | 14,501 | ÷ | 342,250,398 | |
| Feb 8, 2013 | 2.07 | = | 66.82 | ÷ | 32.23 | 32.23 | = | 11,390 | ÷ | 353,442,904 | |
| Feb 17, 2012 | 1.91 | = | 70.88 | ÷ | 37.08 | 37.08 | = | 13,232 | ÷ | 356,821,649 | |
| Feb 18, 2011 | 2.19 | = | 78.11 | ÷ | 35.73 | 35.73 | = | 13,316 | ÷ | 372,704,788 | |
| Feb 19, 2010 | 2.25 | = | 72.61 | ÷ | 32.21 | 32.21 | = | 12,423 | ÷ | 385,725,209 | |
| Feb 20, 2009 | 1.95 | = | 50.82 | ÷ | 26.04 | 26.04 | = | 10,053 | ÷ | 386,068,301 | |
| Feb 22, 2008 | 2.86 | = | 83.65 | ÷ | 29.26 | 29.26 | = | 11,768 | ÷ | 402,225,356 | |
| Feb 23, 2007 | 3.26 | = | 79.05 | ÷ | 24.22 | 24.22 | = | 9,827 | ÷ | 405,728,088 | |
| Mar 3, 2006 | 3.14 | = | 63.91 | ÷ | 20.35 | 20.35 | = | 8,145 | ÷ | 400,288,502 |
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 General Dynamics Corp. Annual Report.
The Price to Book Value (P/BV) ratio exhibits three distinct phases of valuation over the analyzed period from 2006 to 2020, characterized by an initial contraction, a period of significant expansion, and a subsequent moderation.
- Valuation Contraction (2006–2013)
- Between 2006 and 2008, the P/BV ratio remained relatively stable, fluctuating between 2.86 and 3.26. A sharp decline occurred in 2009, where the ratio dropped to 1.95, coinciding with a substantial decrease in the share price from 83.65 to 50.82. Throughout this period, the ratio largely hovered around the 2.0 mark, reaching a low of 1.91 in 2012, indicating a period where the market valued the company closer to its accounting book value.
- Rapid Valuation Expansion (2014–2018)
- A reversal in the trend began in 2014, with the P/BV ratio ascending from 2.46 to a peak of 5.44 by 2018. This expansion was driven primarily by aggressive growth in the share price, which rose from 104.19 in 2014 to 209.53 in 2018. During this interval, the share price increased at a rate significantly higher than the growth of the book value per share, resulting in a heightened market premium over the company's net assets.
- Recent Moderation (2019–2020)
- Following the 2018 peak, the P/BV ratio experienced a correction, declining to 4.26 in 2019 and further to 3.97 in 2020. This moderation was a result of the share price decreasing to 173.48 in 2019 and later recovering slightly to 186.25, while the book value per share continued a general upward trajectory, reaching 46.88 by February 2020.
Overall, a long-term upward trend in the book value per share is evident, increasing from 20.35 in 2006 to 46.88 in 2020. While the market valuation of these assets fluctuated, the company ended the period with a significantly higher P/BV multiple than was observed during the 2009–2013 period, suggesting a sustained increase in the market's valuation of the company's equity.
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Comparison to Competitors
General Dynamics Corp., P/BV, long-term trends, comparison to competitors
| General Dynamics Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 10, 2020 | 3.97 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Feb 13, 2019 | 4.26 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Feb 12, 2018 | 5.44 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Feb 6, 2017 | 5.05 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Feb 8, 2016 | 3.83 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Feb 9, 2015 | 3.84 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Feb 7, 2014 | 2.46 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Feb 8, 2013 | 2.07 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Feb 17, 2012 | 1.91 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Feb 18, 2011 | 2.19 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Feb 19, 2010 | 2.25 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Feb 20, 2009 | 1.95 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Feb 22, 2008 | 2.86 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Feb 23, 2007 | 3.26 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Mar 3, 2006 | 3.14 | 5.26 | 5.81 | 2.73 | 3.15 | 3.05 | 4.05 | 3.39 |
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 (Capital Goods)
General Dynamics Corp., P/BV, long-term trends, comparison to sector (capital goods)
| General Dynamics Corp. | Capital Goods | |
|---|---|---|
| Feb 10, 2020 | 3.97 | 6.91 |
| Feb 13, 2019 | 4.26 | 6.11 |
| Feb 12, 2018 | 5.44 | 5.42 |
| Feb 6, 2017 | 5.05 | 4.64 |
| Feb 8, 2016 | 3.83 | 3.45 |
| Feb 9, 2015 | 3.84 | 3.17 |
| Feb 7, 2014 | 2.46 | 2.85 |
| Feb 8, 2013 | 2.07 | 2.77 |
| Feb 17, 2012 | 1.91 | 2.89 |
| Feb 18, 2011 | 2.19 | 2.90 |
| Feb 19, 2010 | 2.25 | 2.29 |
| Feb 20, 2009 | 1.95 | 1.86 |
| Feb 22, 2008 | 2.86 | 3.46 |
| Feb 23, 2007 | 3.26 | 3.91 |
| Mar 3, 2006 | 3.14 | 3.47 |
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 (Industrials)
General Dynamics Corp., P/BV, long-term trends, comparison to industry (industrials)
| General Dynamics Corp. | Industrials | |
|---|---|---|
| Feb 10, 2020 | 3.97 | 6.28 |
| Feb 13, 2019 | 4.26 | 5.96 |
| Feb 12, 2018 | 5.44 | 5.37 |
| Feb 6, 2017 | 5.05 | 4.89 |
| Feb 8, 2016 | 3.83 | 3.68 |
| Feb 9, 2015 | 3.84 | 3.70 |
| Feb 7, 2014 | 2.46 | 3.14 |
| Feb 8, 2013 | 2.07 | 3.06 |
| Feb 17, 2012 | 1.91 | 3.09 |
| Feb 18, 2011 | 2.19 | 3.05 |
| Feb 19, 2010 | 2.25 | 2.43 |
| Feb 20, 2009 | 1.95 | 2.01 |
| Feb 22, 2008 | 2.86 | 3.45 |
| Feb 23, 2007 | 3.26 | 3.75 |
| Mar 3, 2006 | 3.14 | 3.95 |
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).