Price to Book Value (P/BV)
since 2005
Calculation
Northrop Grumman 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 26, 2023 | 4.43 | = | 443.47 | ÷ | 100.04 | 100.04 | = | 15,312 | ÷ | 153,053,371 | |
| Jan 27, 2022 | 4.52 | = | 373.99 | ÷ | 82.80 | 82.80 | = | 12,926 | ÷ | 156,101,934 | |
| Jan 28, 2021 | 4.62 | = | 293.03 | ÷ | 63.45 | 63.45 | = | 10,579 | ÷ | 166,718,384 | |
| Jan 30, 2020 | 7.32 | = | 384.87 | ÷ | 52.61 | 52.61 | = | 8,819 | ÷ | 167,637,130 | |
| Jan 31, 2019 | 5.71 | = | 275.55 | ÷ | 48.23 | 48.23 | = | 8,187 | ÷ | 169,737,507 | |
| Jan 29, 2018 | 8.36 | = | 338.34 | ÷ | 40.49 | 40.49 | = | 7,048 | ÷ | 174,087,585 | |
| Jan 30, 2017 | 7.62 | = | 229.48 | ÷ | 30.12 | 30.12 | = | 5,259 | ÷ | 174,599,406 | |
| Feb 1, 2016 | 6.18 | = | 188.64 | ÷ | 30.52 | 30.52 | = | 5,522 | ÷ | 180,943,220 | |
| Feb 2, 2015 | 4.37 | = | 159.19 | ÷ | 36.47 | 36.47 | = | 7,235 | ÷ | 198,405,799 | |
| Feb 3, 2014 | 2.31 | = | 113.25 | ÷ | 49.00 | 49.00 | = | 10,620 | ÷ | 216,737,248 | |
| Feb 5, 2013 | 1.62 | = | 64.88 | ÷ | 40.12 | 40.12 | = | 9,514 | ÷ | 237,126,501 | |
| Feb 8, 2012 | 1.48 | = | 60.50 | ÷ | 40.91 | 40.91 | = | 10,336 | ÷ | 252,631,776 | |
| Feb 9, 2011 | 1.54 | = | 71.87 | ÷ | 46.54 | 46.54 | = | 13,557 | ÷ | 291,312,990 | |
| Feb 9, 2010 | 1.42 | = | 59.55 | ÷ | 41.90 | 41.90 | = | 12,687 | ÷ | 302,771,417 | |
| Feb 10, 2009 | 1.22 | = | 44.54 | ÷ | 36.43 | 36.43 | = | 11,920 | ÷ | 327,180,490 | |
| Feb 20, 2008 | 1.55 | = | 81.00 | ÷ | 52.34 | 52.34 | = | 17,687 | ÷ | 337,919,384 | |
| Feb 21, 2007 | 1.59 | = | 75.29 | ÷ | 47.44 | 47.44 | = | 16,615 | ÷ | 350,262,436 | |
| Feb 17, 2006 | 1.37 | = | 65.71 | ÷ | 47.98 | 47.98 | = | 16,828 | ÷ | 350,705,853 |
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 Northrop Grumman Corp. Annual Report.
The Price to Book Value (P/BV) ratio exhibits three distinct phases of valuation between 2006 and 2023, transitioning from a period of relative stability to a phase of rapid multiple expansion, followed by a period of moderation and equity growth.
- Initial Valuation Stability (2006–2013)
- During this interval, the P/BV ratio remained consistently low, fluctuating within a narrow range between 1.22 and 1.62. The share price and book value per share (BVPS) moved in relative tandem, suggesting that market valuation was closely aligned with the company's tangible net asset value.
- Rapid Multiple Expansion and Decoupling (2014–2018)
- A significant divergence between market price and book value occurred beginning in 2014. The P/BV ratio escalated sharply from 2.31 in 2014 to a peak of 8.36 in 2018. This period is characterized by a decoupling effect where the share price rose substantially while BVPS simultaneously declined, reaching a low of 30.12 in 2017. This trend indicates a shift in investor valuation, placing a significantly higher premium on intangible assets, future growth prospects, or reflecting the impact of aggressive share repurchases reducing the equity base.
- Normalization and Equity Recovery (2019–2023)
- In the final period, the P/BV ratio moderated, fluctuating between a high of 7.32 and a low of 4.43. This stabilization was primarily driven by a robust recovery in BVPS, which climbed from 48.23 in 2019 to 100.04 in 2023. Although the share price continued its upward trajectory to reach 443.47 by January 2023, the simultaneous growth in book value acted as a counterbalance, preventing further exponential increases in the valuation multiple.
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Comparison to Competitors
Northrop Grumman Corp., P/BV, long-term trends, comparison to competitors
| Northrop Grumman Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Jan 26, 2023 | 4.43 | — | 8.09 | 4.04 | 2.43 | 8.02 | 12.67 | 1.97 |
| Jan 27, 2022 | 4.52 | — | 6.62 | 3.63 | 2.64 | 6.91 | 9.62 | 1.95 |
| Jan 28, 2021 | 4.62 | — | 7.20 | 3.54 | 2.89 | 8.07 | 15.27 | 1.53 |
| Jan 30, 2020 | 7.32 | — | 5.16 | 2.48 | 3.66 | 6.97 | 39.60 | 3.24 |
| Jan 31, 2019 | 5.71 | 674.83 | 5.44 | 2.12 | 3.00 | 5.96 | 61.11 | 2.71 |
| Jan 29, 2018 | 8.36 | 569.92 | 6.98 | 2.06 | 1.96 | 6.44 | — | 3.38 |
| Jan 30, 2017 | 7.62 | 122.80 | 4.42 | 2.19 | 3.47 | 4.79 | 49.61 | 3.22 |
| Feb 1, 2016 | 6.18 | 12.17 | 2.56 | 1.72 | 2.79 | 4.35 | 21.37 | 2.59 |
| Feb 2, 2015 | 4.37 | 12.04 | 3.09 | 2.13 | 2.04 | 4.63 | 17.92 | 3.49 |
| Feb 3, 2014 | 2.31 | 6.50 | 2.96 | 2.15 | 1.96 | 4.25 | 10.65 | 3.14 |
| Feb 5, 2013 | 1.62 | 9.78 | 3.57 | 1.94 | 1.95 | 4.24 | 727.88 | 3.18 |
| Feb 8, 2012 | 1.48 | 16.10 | 5.78 | 2.32 | 1.75 | 4.31 | 28.67 | 3.48 |
| Feb 9, 2011 | 1.54 | 19.33 | 6.02 | 2.47 | 1.86 | 4.26 | 7.56 | 3.65 |
| Feb 9, 2010 | 1.42 | 20.59 | 4.16 | 1.67 | 1.47 | 3.27 | 7.00 | 3.12 |
| Feb 10, 2009 | 1.22 | — | 2.63 | 0.95 | 1.10 | 3.38 | 9.51 | 2.82 |
| Feb 20, 2008 | 1.55 | 7.24 | 5.00 | 2.28 | 2.97 | 4.52 | 4.38 | 3.28 |
| Feb 21, 2007 | 1.59 | 15.15 | 6.33 | 2.88 | 3.17 | 3.94 | 6.23 | 3.92 |
| Feb 17, 2006 | 1.37 | 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)
Northrop Grumman Corp., P/BV, long-term trends, comparison to sector (capital goods)
| Northrop Grumman Corp. | Capital Goods | |
|---|---|---|
| Jan 26, 2023 | 4.43 | 5.31 |
| Jan 27, 2022 | 4.52 | 4.77 |
| Jan 28, 2021 | 4.62 | 5.05 |
| Jan 30, 2020 | 7.32 | 6.91 |
| Jan 31, 2019 | 5.71 | 6.11 |
| Jan 29, 2018 | 8.36 | 5.42 |
| Jan 30, 2017 | 7.62 | 4.64 |
| Feb 1, 2016 | 6.18 | 3.45 |
| Feb 2, 2015 | 4.37 | 3.17 |
| Feb 3, 2014 | 2.31 | 2.85 |
| Feb 5, 2013 | 1.62 | 2.77 |
| Feb 8, 2012 | 1.48 | 2.89 |
| Feb 9, 2011 | 1.54 | 2.90 |
| Feb 9, 2010 | 1.42 | 2.29 |
| Feb 10, 2009 | 1.22 | 1.86 |
| Feb 20, 2008 | 1.55 | 3.46 |
| Feb 21, 2007 | 1.59 | 3.91 |
| Feb 17, 2006 | 1.37 | 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)
Northrop Grumman Corp., P/BV, long-term trends, comparison to industry (industrials)
| Northrop Grumman Corp. | Industrials | |
|---|---|---|
| Jan 26, 2023 | 4.43 | 5.50 |
| Jan 27, 2022 | 4.52 | 5.44 |
| Jan 28, 2021 | 4.62 | 5.89 |
| Jan 30, 2020 | 7.32 | 6.28 |
| Jan 31, 2019 | 5.71 | 5.96 |
| Jan 29, 2018 | 8.36 | 5.37 |
| Jan 30, 2017 | 7.62 | 4.89 |
| Feb 1, 2016 | 6.18 | 3.68 |
| Feb 2, 2015 | 4.37 | 3.70 |
| Feb 3, 2014 | 2.31 | 3.14 |
| Feb 5, 2013 | 1.62 | 3.06 |
| Feb 8, 2012 | 1.48 | 3.09 |
| Feb 9, 2011 | 1.54 | 3.05 |
| Feb 9, 2010 | 1.42 | 2.43 |
| Feb 10, 2009 | 1.22 | 2.01 |
| Feb 20, 2008 | 1.55 | 3.45 |
| Feb 21, 2007 | 1.59 | 3.75 |
| Feb 17, 2006 | 1.37 | 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).