Price to Book Value (P/BV)
since 2005
Calculation
Time Warner Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Time Warner Inc. shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 22, 2018 | 2.59 | = | 94.37 | ÷ | 36.39 | 36.39 | = | 28,375 | ÷ | 779,851,623 | |
| Feb 23, 2017 | 3.09 | = | 97.06 | ÷ | 31.43 | 31.43 | = | 24,335 | ÷ | 774,334,281 | |
| Feb 25, 2016 | 2.23 | = | 66.66 | ÷ | 29.89 | 29.89 | = | 23,619 | ÷ | 790,154,346 | |
| Feb 26, 2015 | 2.80 | = | 82.42 | ÷ | 29.47 | 29.47 | = | 24,476 | ÷ | 830,521,982 | |
| Feb 26, 2014 | 1.93 | = | 64.69 | ÷ | 33.50 | 33.50 | = | 29,904 | ÷ | 892,661,216 | |
| Feb 22, 2013 | 1.66 | = | 52.99 | ÷ | 31.96 | 31.96 | = | 29,877 | ÷ | 934,790,459 | |
| Feb 24, 2012 | 1.22 | = | 37.69 | ÷ | 30.90 | 30.90 | = | 29,957 | ÷ | 969,638,079 | |
| Feb 18, 2011 | 1.27 | = | 38.18 | ÷ | 30.14 | 30.14 | = | 32,940 | ÷ | 1,092,833,062 | |
| Feb 19, 2010 | 1.01 | = | 29.44 | ÷ | 29.02 | 29.02 | = | 33,383 | ÷ | 1,150,231,940 | |
| Feb 20, 2009 | 0.62 | = | 22.05 | ÷ | 35.36 | 35.36 | = | 42,288 | ÷ | 1,195,931,882 | |
| Feb 22, 2008 | 1.01 | = | 49.47 | ÷ | 49.10 | 49.10 | = | 58,536 | ÷ | 1,192,107,190 | |
| Feb 23, 2007 | 1.37 | = | 64.50 | ÷ | 47.25 | 47.25 | = | 60,389 | ÷ | 1,278,118,873 | |
| Feb 27, 2006 | 1.24 | = | 51.93 | ÷ | 41.76 | 41.76 | = | 62,715 | ÷ | 1,501,766,104 |
Based on: 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 Time Warner Inc. Annual Report.
The analysis of the Price to Book Value (P/BV) ratio from 2006 to 2018 reveals three distinct phases of market valuation: a period of volatility and contraction, a stabilization phase, and a period of significant valuation expansion.
- Market Valuation Volatility (2006–2009)
- A marked decline in valuation is evident during this period. While the P/BV ratio began at 1.24 in 2006 and rose to 1.37 in 2007, it collapsed to a low of 0.62 by February 2009. This indicates a period where the market price of the shares fell significantly below the underlying book value per share, suggesting a period of intense market devaluation or a significant decline in investor confidence regarding the company's asset base.
- Stabilization and Recovery (2010–2012)
- Between 2010 and 2012, the P/BV ratio stabilized, moving from 1.01 back to 1.22. This period is characterized by a recovery in the share price from 29.44 to 37.69, while the book value per share remained relatively stagnant, fluctuating within a narrow range between 29.02 and 30.90.
- Valuation Premium Expansion (2013–2018)
- A sustained upward trend in the P/BV ratio is observed starting in 2013, reaching a peak of 3.09 in 2017. This expansion reflects a growing market premium, as the share price climbed from 52.99 in 2013 to 97.06 in 2017. The increase in the ratio from 1.66 to 3.09 suggests that the market began attributing significantly higher value to the company's earnings potential or intangible assets beyond its recorded book value. A slight correction occurred in 2018, with the ratio decreasing to 2.59.
Overall, the trajectory shows a transition from a valuation closely tied to book value in the early years to a market-driven premium in the later years, despite fluctuations in the actual book value per share.
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Comparison to Competitors
Time Warner Inc., P/BV, long-term trends, comparison to competitors
| Time Warner Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 22, 2018 | 2.59 | 4.93 | 2.88 | 7.54 | 34.48 | 3.76 |
| Feb 23, 2017 | 3.09 | 3.99 | 3.31 | 6.39 | 22.89 | 3.61 |
| Feb 25, 2016 | 2.23 | 3.91 | 2.78 | 7.02 | 18.18 | 4.41 |
| Feb 26, 2015 | 2.80 | 3.44 | 2.86 | 6.05 | 14.45 | 3.39 |
| Feb 26, 2014 | 1.93 | 4.57 | 2.84 | 10.31 | 18.15 | 2.68 |
| Feb 22, 2013 | 1.66 | 3.46 | 2.14 | 6.02 | 12.37 | 2.17 |
| Feb 24, 2012 | 1.22 | 3.18 | 1.71 | — | 10.68 | 1.61 |
| Feb 18, 2011 | 1.27 | 4.34 | 1.58 | — | 42.87 | 1.86 |
| Feb 19, 2010 | 1.01 | 4.71 | 1.07 | — | 17.50 | 1.70 |
| Feb 20, 2009 | 0.62 | 3.99 | 0.91 | — | 6.03 | 1.07 |
| Feb 22, 2008 | 1.01 | 7.31 | 1.47 | — | 4.47 | 1.95 |
| Feb 23, 2007 | 1.37 | 8.18 | 2.01 | — | 3.72 | 2.14 |
| Feb 27, 2006 | 1.24 | 10.69 | 1.41 | — | 6.17 | 1.88 |
Based on: 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 (Media & Entertainment)
Time Warner Inc., P/BV, long-term trends, comparison to sector (media & entertainment)
| Time Warner Inc. | Media & Entertainment | |
|---|---|---|
| Feb 22, 2018 | 2.59 | 5.25 |
| Feb 23, 2017 | 3.09 | 4.46 |
| Feb 25, 2016 | 2.23 | 4.41 |
| Feb 26, 2015 | 2.80 | 3.78 |
| Feb 26, 2014 | 1.93 | 4.24 |
| Feb 22, 2013 | 1.66 | 3.00 |
| Feb 24, 2012 | 1.22 | 2.32 |
| Feb 18, 2011 | 1.27 | 2.75 |
| Feb 19, 2010 | 1.01 | 2.45 |
| Feb 20, 2009 | 0.62 | 1.84 |
| Feb 22, 2008 | 1.01 | 3.03 |
| Feb 23, 2007 | 1.37 | 3.23 |
| Feb 27, 2006 | 1.24 | 2.74 |
Based on: 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 (Communication Services)
Time Warner Inc., P/BV, long-term trends, comparison to industry (communication services)
| Time Warner Inc. | Communication Services | |
|---|---|---|
| Feb 22, 2018 | 2.59 | 4.14 |
| Feb 23, 2017 | 3.09 | 3.97 |
| Feb 25, 2016 | 2.23 | 3.88 |
| Feb 26, 2015 | 2.80 | 3.70 |
| Feb 26, 2014 | 1.93 | 3.60 |
| Feb 22, 2013 | 1.66 | 2.84 |
| Feb 24, 2012 | 1.22 | 2.18 |
| Feb 18, 2011 | 1.27 | 2.24 |
| Feb 19, 2010 | 1.01 | 1.97 |
| Feb 20, 2009 | 0.62 | 1.70 |
| Feb 22, 2008 | 1.01 | 2.33 |
| Feb 23, 2007 | 1.37 | 2.49 |
| Feb 27, 2006 | 1.24 | 2.45 |
Based on: 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).