Price to Book Value (P/BV)
since 2005
Calculation
National Oilwell Varco Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Company stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 19, 2016 | 0.67 | = | 29.30 | ÷ | 43.59 | 43.59 | = | 16,383 | ÷ | 375,800,956 | |
| Feb 17, 2015 | 1.09 | = | 55.13 | ÷ | 50.48 | 50.48 | = | 20,692 | ÷ | 409,935,076 | |
| Feb 14, 2014 | 1.47 | = | 76.42 | ÷ | 51.88 | 51.88 | = | 22,230 | ÷ | 428,526,178 | |
| Feb 22, 2013 | 1.44 | = | 68.10 | ÷ | 47.44 | 47.44 | = | 20,239 | ÷ | 426,639,780 | |
| Feb 23, 2012 | 2.08 | = | 86.23 | ÷ | 41.53 | 41.53 | = | 17,619 | ÷ | 424,224,491 | |
| Feb 23, 2011 | 2.12 | = | 79.39 | ÷ | 37.40 | 37.40 | = | 15,748 | ÷ | 421,070,856 | |
| Feb 26, 2010 | 1.29 | = | 43.47 | ÷ | 33.73 | 33.73 | = | 14,113 | ÷ | 418,452,756 | |
| Mar 2, 2009 | 0.79 | = | 23.97 | ÷ | 30.25 | 30.25 | = | 12,628 | ÷ | 417,375,125 | |
| Feb 29, 2008 | 3.34 | = | 62.30 | ÷ | 18.66 | 18.66 | = | 6,661 | ÷ | 356,988,724 | |
| Feb 27, 2007 | 2.37 | = | 33.91 | ÷ | 14.29 | 14.29 | = | 5,024 | ÷ | 351,607,276 | |
| Mar 6, 2006 | 2.49 | = | 29.92 | ÷ | 12.00 | 12.00 | = | 4,194 | ÷ | 349,441,532 |
Based on: 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 National Oilwell Varco Inc. Annual Report.
Analysis of the Price to Book Value (P/BV) ratio reveals significant volatility between 2006 and 2016, characterized by cycles of premium valuation and periods where the market valued the entity below its accounting book value.
- P/BV Ratio Volatility
- The valuation ratio peaked in February 2008 at 3.34, indicating a high market premium. This was followed by a sharp contraction to 0.79 in March 2009, marking a period where the share price fell significantly below the book value. A subsequent recovery occurred between 2010 and 2012, with the ratio returning to a range of 2.08 to 2.12.
- Book Value Per Share (BVPS) Progression
- A sustained upward trajectory in BVPS is observed from 2006 through 2014, rising from 12.00 US$ to a peak of 51.88 US$. This steady increase reflects a consistent growth in net asset value over an eight-year period. A reversal in this trend began after February 2014, with the BVPS declining to 43.59 US$ by February 2016.
- Market Valuation Decline
- The period from 2013 to 2016 is characterized by a consistent downward trend in the P/BV ratio, falling from 1.44 to 0.67. By February 2016, the share price of 29.30 US$ represented a substantial discount relative to the BVPS of 43.59 US$, indicating that the market valuation had decoupled from the growth in book value seen in previous years.
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Comparison to Competitors
National Oilwell Varco Inc., P/BV, long-term trends, comparison to competitors
| National Oilwell Varco Inc. | SLB N.V. | |
|---|---|---|
| Feb 19, 2016 | 0.67 | 2.31 |
| Feb 17, 2015 | 1.09 | 2.76 |
| Feb 14, 2014 | 1.47 | 2.90 |
| Feb 22, 2013 | 1.44 | 2.98 |
| Feb 23, 2012 | 2.08 | 3.25 |
| Feb 23, 2011 | 2.12 | 3.89 |
| Feb 26, 2010 | 1.29 | 3.88 |
| Mar 2, 2009 | 0.79 | 3.02 |
| Feb 29, 2008 | 3.34 | 6.83 |
| Feb 27, 2007 | 2.37 | 7.16 |
| Mar 6, 2006 | 2.49 | 9.22 |
Based on: 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 (Energy)
National Oilwell Varco Inc., P/BV, long-term trends, comparison to industry (energy)
| National Oilwell Varco Inc. | Energy | |
|---|---|---|
| Feb 19, 2016 | 0.67 | 1.56 |
| Feb 17, 2015 | 1.09 | 1.83 |
| Feb 14, 2014 | 1.47 | 1.99 |
| Feb 22, 2013 | 1.44 | 2.08 |
| Feb 23, 2012 | 2.08 | 2.21 |
| Feb 23, 2011 | 2.12 | 2.45 |
| Feb 26, 2010 | 1.29 | 2.10 |
| Mar 2, 2009 | 0.79 | 2.10 |
| Feb 29, 2008 | 3.34 | 2.94 |
| Feb 27, 2007 | 2.37 | 2.69 |
| Mar 6, 2006 | 2.49 | 2.76 |
Based on: 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).