Stock Analysis on Net

Time Warner Cable Inc. (NYSE:TWC)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 28, 2016.

Price to Book Value (P/BV)
since 2006

Microsoft Excel

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Calculation

Time Warner Cable Inc., P/BV, long-term trends, calculation

Microsoft Excel

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).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Time Warner Cable Inc. Annual Report.


Share Price
The share price experienced a significant decline from $123 in February 2007 to a low of $46.89 in February 2010, marking a reduction of approximately 62%. Following this period, the share price showed a consistent and substantial recovery, rising to $184.99 by February 2016. This represents nearly a fourfold increase from the 2010 low and a 50% increase compared to the initial 2007 value, indicating strong market appreciation over the latter half of the period.
Book Value Per Share (BVPS)
The book value per share demonstrated a downward trend from $72.36 in 2007 to $24.63 in 2010, mirroring the decline in share price during the same period. Thereafter, BVPS remained relatively stable between approximately $24 and $32, with a modest upward trend towards $31.75 by 2016. The pronounced drop between 2008 and 2010 suggests a period of reduced asset base or increased liabilities, while the stabilization in subsequent years indicates a period of recovery or improved management of net assets.
Price-to-Book Value Ratio (P/BV)
The P/BV ratio declined from 1.7 in 2007 to 1.0 in 2009, reflecting the simultaneous decline in share price and book value. From 2010 onwards, the ratio increased markedly, rising from 1.9 to 5.83 by 2016. This sharp increase suggests that the market valuation of the company’s shares grew significantly faster than the book value, indicating improving investor confidence, potentially driven by expectations of higher future earnings or growth prospects. The P/BV ratio peaked at 5.79 in 2014 before slightly increasing to 5.83 in 2016, suggesting a strong premium over book value in these later years.
Overall Insights
The data indicates a period of financial and market stress culminating in 2010, characterized by declining share prices and book value per share. Following this trough, the company’s market valuation displayed robust recovery and expansion, with share prices outpacing changes in book value. The elevated P/BV ratios from 2011 onward reflect substantial investor optimism and a willingness to pay a premium over the net asset value. The relative stabilization of BVPS alongside rising share prices suggests improved profitability or future growth expectations rather than changes in asset base alone.

Comparison to Competitors

Time Warner Cable Inc., P/BV, long-term trends, comparison to competitors

Microsoft Excel

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).


Comparison to Sector (Media & Entertainment)

Time Warner Cable Inc., P/BV, long-term trends, comparison to sector (media & entertainment)

Microsoft Excel

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).


Comparison to Industry (Communication Services)

Time Warner Cable Inc., P/BV, long-term trends, comparison to industry (communication services)

Microsoft Excel

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).