Compares equity value with accounting equity. Asset quality, accounting policies and unrecorded intangible assets can change its usefulness.
P/B = Market capitalization / book value of equity5,099,363,267,840 ÷ 107,520,000,000 ≈ 47.43x
What does the historical comparison mean?
The cheap/expensive label compares the current multiple with the supplied three-year median. It is a comparison with this company’s own history, not with every stock in its industry. A lower multiple can also reflect weaker growth or greater risk.
If the multiple returned to that median while the per-share financial measure stayed unchanged, the illustrative price would be $332.85 (-4.1% versus the recorded price). This is a sensitivity illustration, not a price target.
Why can forward multiples look different?
A forward multiple uses an estimated future financial measure instead of the trailing figure. A lower forward ratio may reflect expected improvement, but that improvement is not yet a reported result. Read the forecast period and assumptions before comparing it with the current multiple.
