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Red Hat Inc  (NYSE:RHT) PB Ratio: 17.47 (As of Today)

As of today, Red Hat Inc's share price is $128.51. Red Hat Inc's Book Value per Share for the quarter that ended in May. 2017 was $7.35. Hence, Red Hat Inc's P/B Ratio of today is 17.47.

Warning Sign:

Red Hat Inc stock PB Ratio (=16.24) is close to 10-year high of 16.24

NYSE:RHT' s PB Ratio Range Over the Past 10 Years
Min: 1.52   Max: 16.05
Current: 16.24

1.52
16.05

During the past 13 years, Red Hat Inc's highest P/B Ratio was 16.05. The lowest was 1.52. And the median was 6.69.

NYSE:RHT's PB Ratio is ranked lower than
92% of the 1848 Companies
in the Global industry.

( Industry Median: 3.13 vs. NYSE:RHT: 16.24 )

During the past 12 months, Red Hat Inc's average Book Value Per Share Growth Rate was 7.80% per year. During the past 3 years, the average Book Value Per Share Growth Rate was -4.80% per year. During the past 5 years, the average Book Value Per Share Growth Rate was -1.40% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 5.40% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Red Hat Inc was 34.60% per year. The lowest was -8.40% per year. And the median was 9.70% per year.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Red Hat Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
PB Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.45 7.21 9.85 8.87 11.74

Red Hat Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
PB Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.94 11.12 11.74 12.18 13.58

Competitive Comparison
* 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.


Calculation

Red Hat Inc's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (Q: May. 2017)
=128.51/7.354
=17.47

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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

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


Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PS Ratio or Price-to-Free-Cash-Flow, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book 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 Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


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