Price to Book Value (P/BV)
since 2006
Calculation
Time Warner Cable Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total TWC shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2016 | 5.83 | = | 184.99 | ÷ | 31.75 | 31.75 | = | 8,995 | ÷ | 283,270,372 | |
| Feb 13, 2015 | 5.25 | = | 149.74 | ÷ | 28.53 | 28.53 | = | 8,013 | ÷ | 280,900,337 | |
| Feb 18, 2014 | 5.79 | = | 144.98 | ÷ | 25.02 | 25.02 | = | 6,943 | ÷ | 277,451,193 | |
| Feb 15, 2013 | 3.53 | = | 86.94 | ÷ | 24.63 | 24.63 | = | 7,279 | ÷ | 295,513,813 | |
| Feb 17, 2012 | 3.24 | = | 77.66 | ÷ | 23.97 | 23.97 | = | 7,530 | ÷ | 314,086,417 | |
| Feb 18, 2011 | 2.68 | = | 71.89 | ÷ | 26.82 | 26.82 | = | 9,210 | ÷ | 343,385,153 | |
| Feb 19, 2010 | 1.90 | = | 46.89 | ÷ | 24.63 | 24.63 | = | 8,685 | ÷ | 352,558,973 | |
| Feb 20, 2009 | 1.00 | = | 52.86 | ÷ | 52.70 | 52.70 | = | 17,164 | ÷ | 325,671,447 | |
| Feb 22, 2008 | 1.08 | = | 81.96 | ÷ | 75.87 | 75.87 | = | 24,706 | ÷ | 325,645,948 | |
| Feb 23, 2007 | 1.70 | = | 123.00 | ÷ | 72.36 | 72.36 | = | 23,564 | ÷ | 325,637,810 |
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.
The financial data reveals a significant shift in market valuation relative to book value over the ten-year period from 2007 to 2016. The Price to Book Value (P/BV) ratio experienced an initial period of compression followed by a sustained and aggressive expansion, indicating a growing divergence between the market's perception of the company's value and its accounting book value.
- Valuation Compression (2007–2009)
- A downward trend in the P/BV ratio is observed between 2007 and 2009, falling from 1.70 to a minimum of 1.00. During this interval, the share price declined from 123.00 to 52.86. By 2009, the market valuation reached parity with the book value per share, which stood at 52.70.
- Steady Valuation Growth (2010–2013)
- From 2010 to 2013, a consistent upward trajectory in the P/BV ratio is evident, rising from 1.90 to 3.53. This period is characterized by a recovering share price, which grew from 46.89 to 86.94, while the book value per share remained relatively stagnant, fluctuating in a narrow range between 23.97 and 26.82.
- Premium Valuation Phase (2014–2016)
- A sharp increase in the valuation multiple occurred between 2013 and 2014, with the P/BV ratio jumping from 3.53 to 5.79. This premium persisted through 2016, concluding at 5.83. The acceleration in the ratio was driven primarily by the share price ascending to 184.99, far outpacing the modest growth of the book value per share, which reached 31.75 by 2016.
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Comparison to Competitors
Time Warner Cable Inc., P/BV, long-term trends, comparison to competitors
| Time Warner Cable Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 12, 2016 | 5.83 | 3.91 | 2.78 | 7.02 | 18.18 | 4.41 |
| Feb 13, 2015 | 5.25 | 3.44 | 2.86 | 6.05 | 14.45 | 3.39 |
| Feb 18, 2014 | 5.79 | 4.57 | 2.84 | 10.31 | 18.15 | 2.68 |
| Feb 15, 2013 | 3.53 | 3.46 | 2.14 | 6.02 | 12.37 | 2.17 |
| Feb 17, 2012 | 3.24 | 3.18 | 1.71 | — | 10.68 | 1.61 |
| Feb 18, 2011 | 2.68 | 4.34 | 1.58 | — | 42.87 | 1.86 |
| Feb 19, 2010 | 1.90 | 4.71 | 1.07 | — | 17.50 | 1.70 |
| Feb 20, 2009 | 1.00 | 3.99 | 0.91 | — | 6.03 | 1.07 |
| Feb 22, 2008 | 1.08 | 7.31 | 1.47 | — | 4.47 | 1.95 |
| Feb 23, 2007 | 1.70 | 8.18 | 2.01 | — | 3.72 | 2.14 |
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)
| Time Warner Cable Inc. | Media & Entertainment | |
|---|---|---|
| Feb 12, 2016 | 5.83 | 4.41 |
| Feb 13, 2015 | 5.25 | 3.78 |
| Feb 18, 2014 | 5.79 | 4.24 |
| Feb 15, 2013 | 3.53 | 3.00 |
| Feb 17, 2012 | 3.24 | 2.32 |
| Feb 18, 2011 | 2.68 | 2.75 |
| Feb 19, 2010 | 1.90 | 2.45 |
| Feb 20, 2009 | 1.00 | 1.84 |
| Feb 22, 2008 | 1.08 | 3.03 |
| Feb 23, 2007 | 1.70 | 3.23 |
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)
| Time Warner Cable Inc. | Communication Services | |
|---|---|---|
| Feb 12, 2016 | 5.83 | 3.88 |
| Feb 13, 2015 | 5.25 | 3.70 |
| Feb 18, 2014 | 5.79 | 3.60 |
| Feb 15, 2013 | 3.53 | 2.84 |
| Feb 17, 2012 | 3.24 | 2.18 |
| Feb 18, 2011 | 2.68 | 2.24 |
| Feb 19, 2010 | 1.90 | 1.97 |
| Feb 20, 2009 | 1.00 | 1.70 |
| Feb 22, 2008 | 1.08 | 2.33 |
| Feb 23, 2007 | 1.70 | 2.49 |
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).