Price to Book Value (P/BV)
since 2005
Calculation
Monsanto Co., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Monsanto Company shareowners’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 27, 2017 | 8.31 | = | 121.52 | ÷ | 14.63 | 14.63 | = | 6,438 | ÷ | 440,199,969 | |
| Oct 19, 2016 | 9.90 | = | 102.49 | ÷ | 10.35 | 10.35 | = | 4,534 | ÷ | 437,982,595 | |
| Oct 29, 2015 | 5.90 | = | 93.73 | ÷ | 15.89 | 15.89 | = | 6,990 | ÷ | 439,837,164 | |
| Oct 29, 2014 | 6.90 | = | 112.18 | ÷ | 16.27 | 16.27 | = | 7,875 | ÷ | 484,073,332 | |
| Oct 23, 2013 | 4.51 | = | 107.62 | ÷ | 23.88 | 23.88 | = | 12,559 | ÷ | 525,837,818 | |
| Oct 19, 2012 | 4.01 | = | 88.69 | ÷ | 22.13 | 22.13 | = | 11,833 | ÷ | 534,598,091 | |
| Nov 14, 2011 | 3.45 | = | 74.39 | ÷ | 21.56 | 21.56 | = | 11,545 | ÷ | 535,409,098 | |
| Oct 27, 2010 | 3.20 | = | 60.25 | ÷ | 18.83 | 18.83 | = | 10,099 | ÷ | 536,392,459 | |
| Oct 27, 2009 | 3.86 | = | 71.27 | ÷ | 18.45 | 18.45 | = | 10,056 | ÷ | 545,055,022 | |
| Oct 24, 2008 | 4.21 | = | 71.95 | ÷ | 17.11 | 17.11 | = | 9,374 | ÷ | 547,941,657 | |
| Oct 26, 2007 | 6.86 | = | 94.28 | ÷ | 13.73 | 13.73 | = | 7,503 | ÷ | 546,319,136 | |
| Nov 2, 2006 | 3.68 | = | 44.17 | ÷ | 12.01 | 12.01 | = | 6,525 | ÷ | 543,300,591 | |
| Nov 8, 2005 | 3.02 | = | 31.56 | ÷ | 10.45 | 10.45 | = | 5,613 | ÷ | 536,968,150 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Monsanto Co. Annual Report.
The financial trajectory from 2005 to 2017 is characterized by a significant expansion in market valuation relative to book value, marked by a divergent relationship between the share price and the book value per share (BVPS) in the latter part of the period.
- Share Price Evolution
- A consistent long-term upward trend is observed in the share price, which rose from 31.56 US$ in 2005 to a peak of 121.52 US$ in 2017. Despite periodic fluctuations, such as the decline observed between 2007 and 2010, the overall market valuation increased nearly fourfold over the twelve-year span.
- Book Value per Share (BVPS) Analysis
- The BVPS exhibited a period of steady growth from 2005, rising from 10.45 US$ to a peak of 23.88 US$ in 2013. However, a significant reversal occurred after 2013, with the BVPS declining sharply to a low of 10.35 US$ by 2016, before a partial recovery to 14.63 US$ in 2017.
- Price to Book Value (P/BV) Ratio Dynamics
- The P/BV ratio experienced three distinct phases. First, a rapid increase occurred between 2005 and 2007, peaking at 6.86. Second, a period of relative stabilization followed from 2008 to 2013, with the ratio fluctuating between 3.20 and 4.51. Third, a substantial surge was recorded from 2014 to 2017, where the ratio climbed to a maximum of 9.90 in 2016.
- Valuation Divergence and Interpretation
- The most notable insight occurs between 2014 and 2017, where the P/BV ratio accelerated while the BVPS decreased. This divergence indicates that the market began valuing the company based on factors independent of its tangible net assets, such as anticipated future earnings, intangible assets, or strategic growth expectations, leading to a premium valuation despite a shrinking book value.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Monsanto Co., P/BV, long-term trends, comparison to competitors
| Monsanto Co. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Oct 27, 2017 | 8.31 | 6.68 | 7.83 |
| Oct 19, 2016 | 9.90 | 9.06 | 7.80 |
| Oct 29, 2015 | 5.90 | 8.33 | 7.67 |
| Oct 29, 2014 | 6.90 | 6.79 | 6.23 |
| Oct 23, 2013 | 4.51 | 10.53 | 5.04 |
| Oct 19, 2012 | 4.01 | 18.13 | 4.08 |
| Nov 14, 2011 | 3.45 | 13.94 | 4.42 |
| Oct 27, 2010 | 3.20 | 11.92 | 3.46 |
| Oct 27, 2009 | 3.86 | 3.80 | 2.93 |
| Oct 24, 2008 | 4.21 | 20.02 | 3.59 |
| Oct 26, 2007 | 6.86 | — | 3.96 |
| Nov 2, 2006 | 3.68 | — | 3.25 |
| Nov 8, 2005 | 3.02 | — | 3.89 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Durables & Apparel)
Monsanto Co., P/BV, long-term trends, comparison to sector (consumer durables & apparel)
| Monsanto Co. | Consumer Durables & Apparel | |
|---|---|---|
| Oct 27, 2017 | 8.31 | 7.71 |
| Oct 19, 2016 | 9.90 | 7.90 |
| Oct 29, 2015 | 5.90 | 7.73 |
| Oct 29, 2014 | 6.90 | 6.29 |
| Oct 23, 2013 | 4.51 | 5.45 |
| Oct 19, 2012 | 4.01 | 4.85 |
| Nov 14, 2011 | 3.45 | 4.79 |
| Oct 27, 2010 | 3.20 | 3.66 |
| Oct 27, 2009 | 3.86 | 2.94 |
| Oct 24, 2008 | 4.21 | 3.82 |
| Oct 26, 2007 | 6.86 | 3.96 |
| Nov 2, 2006 | 3.68 | 3.25 |
| Nov 8, 2005 | 3.02 | 3.89 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Discretionary)
Monsanto Co., P/BV, long-term trends, comparison to industry (consumer discretionary)
| Monsanto Co. | Consumer Discretionary | |
|---|---|---|
| Oct 27, 2017 | 8.31 | 10.74 |
| Oct 19, 2016 | 9.90 | 8.39 |
| Oct 29, 2015 | 5.90 | 7.17 |
| Oct 29, 2014 | 6.90 | 5.83 |
| Oct 23, 2013 | 4.51 | 5.12 |
| Oct 19, 2012 | 4.01 | 4.39 |
| Nov 14, 2011 | 3.45 | 3.84 |
| Oct 27, 2010 | 3.20 | 4.04 |
| Oct 27, 2009 | 3.86 | 4.72 |
| Oct 24, 2008 | 4.21 | 4.98 |
| Oct 26, 2007 | 6.86 | 3.91 |
| Nov 2, 2006 | 3.68 | 4.50 |
| Nov 8, 2005 | 3.02 | 3.49 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).