data-raw/book_value_data.R

In johngil/gilheany.thesis: MSCI USA and Min Vol Data Analysis

# BOOK VALUE DATA
library(lubridate)

data(book_value_data)

book_value_data$Date <- ymd(as.character(book_value_data$Date))

# Several variables are in millions. Need to convert multiple by 1000000
book_value_data$shares_outstanding <- book_value_data$shares_outstanding * 1000000
book_value_data$total_assets <- book_value_data$total_assets * 1000000
book_value_data$total_liabilities <- book_value_data$total_liabilities * 1000000
book_value_data$market_value <- book_value_data$market_value * 1000000

# Price per share can be calculated by divind market cap by shares outstanding
book_value_data$share_price <- book_value_data$market_value / book_value_data$shares_outstanding

# Find total Book value by multiplying book price per share times number of shares outstanding
book_value_data$book_value1 <- book_value_data$book_value_per_share * book_value_data$shares_outstanding
book_value_data$book_value2 <- book_value_data$total_assets - book_value_data$total_liabilities

# One way to find P/B is now to divide Price per share by Book Value per share
book_value_data$price_to_book1 <- book_value_data$share_price / book_value_data$book_value_per_share

# Another way to find P/B is to divide Market Cap by Book Value
book_value_data$price_to_book2 <- book_value_data$market_value / book_value_data$book_value

# PBR1 and PBR2 should be equal, and they are.