Where Do You Find Book Value of a Stock? It’s something new investors always want to know. And I can’t blame them. That’s because book value is a fairly accurate proxy for intrinsic value.
And as you probably know…
Calculating intrinsic value of a stock is critical to figuring out what a stock is worth and if you should buy it. So looking at book value is a great way to figure out if a stock is trading around intrinsic value. Of course this method isn’t perfect. But it can help you focus your research on stocks that may be trading under intrinsic value, thereby saving you time.
In short, knowing the book value of a stock is helpful because:
If a stock has a price to book ratio of less than 1 the stock may be trading below the intrinsic value of the company’s assets. On the other hand, if the stock is trading at a multiple of 3 to 4 times book value you can be relatively sure investors are valuing the stock based on future earnings growth (rather than tangible assets).
But where do you find book value of a stock online?
Finding Book Value of a Stock Free Online:
Luckily there are plenty of places all over the internet when you can find the book value of a stock. If you’re a true fundamental analysis purist then you will want to get the official statements from the stock of interest. So how does that work?
To find the book value of a stock straight from the source you can easily go to any publicly traded company’s investor relations webpage and download their latest quarterly financial statements and annual report. The balance sheets included contain everything you need to know to find and calculate book value of a stock. It’s good practice to calculate book value yourself if you’re new to fundamental analysis.
Fastest Ways To Find Book Value of a Stock Free Online:
Of course if you don’t want to calculate the book value of a stock yourself, there are other places to find book value online. And to be honest, this is how I usually find the book value of a stock – just because it’s faster than calculating it myself.
But let me share one word of warning about finding book value of a stock online…
Generally speaking, if you are sourcing information online I recommend you check at least 2 or 3 different sources. The last thing you want to do is invest thousands of dollars based on a mis-calculated book value. Save yourself some pain and make sure to check a couple of the different sources. This is very easy to do and will save you a lot of pain.
The following websites are pretty good for finding book value of stocks:
- Morningstar – This data is usually pretty accurate. You can also see book value over the past 10 years which is incredibly helpful. It’s much easier to feel confident investing when management has a strong track record of growing book value.
- Market Watch – Another good source of book value data. Enter ants tock ticker and click on the financials tab. You can see 5 year history of book value and also drill down to quarterly data which is helpful.
- Yahoo Finance – An easy place to get up to date copies of balance sheets with book value. Just be careful to double check.
- Finviz Stock Screener – If you want to sort stocks by book value I suggest you check out Finviz.com and use the stock screener to sort and sift stocks that are trading below book value.
- yCharts.com – Another easy to use source. While yCharts has a premium model you can get book value for free. I like the way yCharts illustrates the change in book value over time.
So there you have it! Now you should know all there is to know about how to find and calculate the book value of a stock. Never again will you worry about overpaying for the assets of a company because you’ll be investing in those with low price too books. Of course that doesn’t mean your home-free in your investing decisions. But it’s a pretty good place to start!
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