Afterpay (Afterpay) PB Ratio : 11.86 (As of May. 12, 2024)

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What is Afterpay PB Ratio?

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-05-12), Afterpay's share price is $40.82. Afterpay's Book Value per Share for the quarter that ended in Jun. 2021 was $3.44. Hence, Afterpay's PB Ratio of today is 11.86.

The historical rank and industry rank for Afterpay's PB Ratio or its related term are showing as below:

AFTPY' s PB Ratio Range Over the Past 10 Years
Min: 3.91 Med: 15.89 Max: 43.09
Current: 15.27

During the past 5 years, Afterpay's highest PB Ratio was 43.09. The lowest was 3.91. And the median was 15.89.

AFTPY's PB Ratio is not ranked
in the Software industry.
Industry Median: 2.68 vs AFTPY: 15.27

During the past 12 months, Afterpay's average Book Value Per Share Growth Rate was 27.70% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 74.40% per year.

During the past 5 years, the highest 3-Year average Book Value Per Share Growth Rate of Afterpay was 74.40% per year. The lowest was 67.20% per year. And the median was 70.80% per year.

Back to Basics: PB Ratio

Afterpay PB Ratio Historical Data

The historical data trend for Afterpay's PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Afterpay PB Ratio Chart

Afterpay Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

PB Ratio

15.95

25.64

Afterpay Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21
PB Ratio	Get a 7-Day Free Trial				-	-	15.95	20.22	25.64

Competitive Comparison of Afterpay's PB Ratio

For the Software - Infrastructure subindustry, Afterpay's PB Ratio, along with its competitors' market caps and PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Afterpay's PB Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Afterpay's PB Ratio distribution charts can be found below:

* The bar in red indicates where Afterpay's PB Ratio falls into.

Afterpay PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Afterpay's PB Ratio for today is calculated as follows:

PB Ratio	=	Share Price	/	Book Value per Share (Q: Jun. 2021)
	=	40.82	/	3.443
	=	11.86

It can also be calculated from the numbers for the whole company:

PB Ratio

Market Cap

(Total Stockholders Equity

Preferred Stock)

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.

Afterpay (OTCPK:AFTPY) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.

Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.

Afterpay PB Ratio Related Terms

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Afterpay (Afterpay) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Afterpay Ltd (OTCPK:AFTPY) » Definitions » PB Ratio

Comparable Companies

Traded in Other Exchanges

N/A

Address

406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000

Website

https://www.afterpay.com

Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.