Price to Book Value (P/BV)
since 2013
Calculation
Twitter Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2022 | 3.97 | = | 36.24 | ÷ | 9.13 | 9.13 | = | 7,307,199 | ÷ | 800,641,166 | |
| Feb 17, 2021 | 7.19 | = | 71.79 | ÷ | 9.99 | 9.99 | = | 7,970,082 | ÷ | 798,152,488 | |
| Feb 19, 2020 | 3.48 | = | 38.77 | ÷ | 11.13 | 11.13 | = | 8,704,386 | ÷ | 782,287,089 | |
| Feb 21, 2019 | 3.47 | = | 30.76 | ÷ | 8.88 | 8.88 | = | 6,805,594 | ÷ | 766,824,550 | |
| Feb 23, 2018 | 4.86 | = | 32.66 | ÷ | 6.72 | 6.72 | = | 5,047,218 | ÷ | 750,904,551 | |
| Feb 27, 2017 | 2.54 | = | 16.06 | ÷ | 6.34 | 6.34 | = | 4,604,935 | ÷ | 726,894,203 | |
| Feb 29, 2016 | 2.89 | = | 18.12 | ÷ | 6.26 | 6.26 | = | 4,368,047 | ÷ | 697,726,321 | |
| Mar 2, 2015 | 8.60 | = | 48.15 | ÷ | 5.60 | 5.60 | = | 3,626,403 | ÷ | 647,836,523 | |
| Mar 6, 2014 | 10.94 | = | 54.83 | ÷ | 5.01 | 5.01 | = | 2,950,006 | ÷ | 588,378,111 |
Based on: 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).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Twitter Inc. Annual Report.
The financial performance from 2014 to 2022 reveals a period of significant valuation volatility characterized by a divergence between market pricing and the growth of book value. While the intrinsic value of the equity showed a consistent upward trajectory for the majority of the period, the market valuation fluctuated sharply, leading to substantial swings in the Price to Book Value (P/BV) ratio.
- Price to Book Value (P/BV) Trend
- A pronounced contraction in valuation is observed between 2014 and 2017, with the P/BV ratio falling from a high of 10.94 to a low of 2.54. Following this period, the ratio stabilized between 3.47 and 4.86 until 2021, when a sharp spike to 7.19 occurred. By 2022, the ratio corrected to 3.97, indicating a return to the medium-term valuation average.
- Book Value Per Share (BVPS) Progression
- The book value per share exhibited steady and consistent growth for seven consecutive years, rising from 5.01 USD in 2014 to a peak of 11.13 USD in 2020. This represents a cumulative increase of approximately 122%. However, this growth trend reversed in the final two years of the period, with the BVPS declining to 9.99 USD in 2021 and further to 9.13 USD in 2022.
- Share Price Correlation
- Market valuation was the primary driver of the P/BV fluctuations. The significant decline in the P/BV ratio between 2014 and 2017 was directly tied to a share price collapse from 54.83 USD to 16.06 USD. Conversely, the valuation peak in 2021 was driven by a surge in share price to 71.79 USD, which occurred despite a simultaneous decrease in the underlying book value per share.
Overall, the data indicates that the market's perception of the company's value was highly volatile and often disconnected from the steady accumulation of book value. The period ended with a valuation that is significantly lower than the 2014 peak but remains higher than the 2017 trough.
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Comparison to Competitors
Twitter Inc., P/BV, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 16, 2022 | 3.97 | 7.78 | 2.36 | 5.18 | 10.83 | 3.11 |
| Feb 17, 2021 | 7.19 | 6.27 | 2.61 | 5.88 | 21.56 | 3.23 |
| Feb 19, 2020 | 3.48 | 4.94 | 2.43 | 5.91 | 19.86 | 2.98 |
| Feb 21, 2019 | 3.47 | 4.49 | 2.31 | 5.65 | 27.41 | 3.45 |
| Feb 23, 2018 | 4.86 | 4.93 | 2.88 | 7.54 | 34.48 | 3.76 |
| Feb 27, 2017 | 2.54 | 3.99 | 3.31 | 6.39 | 22.89 | 3.61 |
| Feb 29, 2016 | 2.89 | 3.91 | 2.78 | 7.02 | 18.18 | 4.41 |
| Mar 2, 2015 | 8.60 | 3.44 | 2.86 | 6.05 | 14.45 | 3.39 |
| Mar 6, 2014 | 10.94 | 4.57 | 2.84 | 10.31 | 18.15 | 2.68 |
Based on: 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).
Comparison to Sector (Media & Entertainment)
Twitter Inc., P/BV, long-term trends, comparison to sector (media & entertainment)
| Twitter Inc. | Media & Entertainment | |
|---|---|---|
| Feb 16, 2022 | 3.97 | 5.68 |
| Feb 17, 2021 | 7.19 | 5.40 |
| Feb 19, 2020 | 3.48 | 4.58 |
| Feb 21, 2019 | 3.47 | 4.52 |
| Feb 23, 2018 | 4.86 | 5.25 |
| Feb 27, 2017 | 2.54 | 4.46 |
| Feb 29, 2016 | 2.89 | 4.41 |
| Mar 2, 2015 | 8.60 | 3.78 |
| Mar 6, 2014 | 10.94 | 4.24 |
Based on: 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).
Comparison to Industry (Communication Services)
Twitter Inc., P/BV, long-term trends, comparison to industry (communication services)
| Twitter Inc. | Communication Services | |
|---|---|---|
| Feb 16, 2022 | 3.97 | 4.28 |
| Feb 17, 2021 | 7.19 | 4.19 |
| Feb 19, 2020 | 3.48 | 3.70 |
| Feb 21, 2019 | 3.47 | 3.48 |
| Feb 23, 2018 | 4.86 | 4.14 |
| Feb 27, 2017 | 2.54 | 3.97 |
| Feb 29, 2016 | 2.89 | 3.88 |
| Mar 2, 2015 | 8.60 | 3.70 |
| Mar 6, 2014 | 10.94 | 3.60 |
Based on: 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).