Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Monsanto Co., current price multiples
| Monsanto Co. | lululemon athletica inc. | Nike Inc. | ||
|---|---|---|---|---|
| Selected Financial Data | ||||
| Current share price (P) | $118.05 | |||
| No. shares of common stock outstanding | 441,283,987 | |||
| Growth rate (g) | 19.85% | |||
| Earnings per share (EPS) | $5.12 | |||
| Next year expected EPS | $6.14 | |||
| Operating profit per share | $7.28 | |||
| Sales per share | $33.18 | |||
| Book value per share (BVPS) | $14.59 | |||
| Valuation Ratios (Price Multiples) | ||||
| Price to earnings (P/E) | 23.05 | 28.44 | 28.02 | |
| Price to next year expected earnings | 19.23 | 21.44 | 23.40 | |
| Price-earnings-growth (PEG) | 1.16 | 0.87 | 1.42 | |
| Price to operating profit (P/OP) | 16.22 | 20.67 | 24.02 | |
| Price to sales (P/S) | 3.56 | 4.58 | 2.77 | |
| Price to book value (P/BV) | 8.09 | 10.42 | 10.14 | |
Based on: 10-K (reporting date: 2017-08-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Monsanto Co., historical price multiples
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Monsanto Co. P/E ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Monsanto Co. P/OP ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Monsanto Co. P/S ratio increased from 2015 to 2016 and from 2016 to 2017. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Monsanto Co. P/BV ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017. |
Price to Earnings (P/E)
Monsanto Co., historical P/E calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 440,199,969 | 437,982,595 | 439,837,164 | 484,073,332 | 525,837,818 | 534,598,091 | |
| Selected Financial Data (US$) | |||||||
| Net income attributable to Monsanto Company (in millions) | 2,260) | 1,336) | 2,314) | 2,740) | 2,482) | 2,045) | |
| Earnings per share (EPS)2 | 5.13 | 3.05 | 5.26 | 5.66 | 4.72 | 3.83 | |
| Share price1, 3 | 121.52 | 102.49 | 93.73 | 112.18 | 107.62 | 88.69 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 23.67 | 33.60 | 17.82 | 19.82 | 22.80 | 23.19 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 Data adjusted for splits and stock dividends.
2 2017 Calculation
EPS = Net income attributable to Monsanto Company ÷ No. shares of common stock outstanding
= 2,260,000,000 ÷ 440,199,969 = 5.13
3 Closing price as at the filing date of Monsanto Co. Annual Report.
4 2017 Calculation
P/E ratio = Share price ÷ EPS
= 121.52 ÷ 5.13 = 23.67
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Monsanto Co. P/E ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level. |
Price to Operating Profit (P/OP)
Monsanto Co., historical P/OP calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 440,199,969 | 437,982,595 | 439,837,164 | 484,073,332 | 525,837,818 | 534,598,091 | |
| Selected Financial Data (US$) | |||||||
| Income from operations (in millions) | 3,212) | 2,375) | 3,523) | 4,075) | 3,570) | 3,148) | |
| Operating profit per share2 | 7.30 | 5.42 | 8.01 | 8.42 | 6.79 | 5.89 | |
| Share price1, 3 | 121.52 | 102.49 | 93.73 | 112.18 | 107.62 | 88.69 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 16.65 | 18.90 | 11.70 | 13.33 | 15.85 | 15.06 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 Data adjusted for splits and stock dividends.
2 2017 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 3,212,000,000 ÷ 440,199,969 = 7.30
3 Closing price as at the filing date of Monsanto Co. Annual Report.
4 2017 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 121.52 ÷ 7.30 = 16.65
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Monsanto Co. P/OP ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017. |
Price to Sales (P/S)
Monsanto Co., historical P/S calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 440,199,969 | 437,982,595 | 439,837,164 | 484,073,332 | 525,837,818 | 534,598,091 | |
| Selected Financial Data (US$) | |||||||
| Net sales (in millions) | 14,640) | 13,502) | 15,001) | 15,855) | 14,861) | 13,504) | |
| Sales per share2 | 33.26 | 30.83 | 34.11 | 32.75 | 28.26 | 25.26 | |
| Share price1, 3 | 121.52 | 102.49 | 93.73 | 112.18 | 107.62 | 88.69 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 3.65 | 3.32 | 2.75 | 3.42 | 3.81 | 3.51 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 Data adjusted for splits and stock dividends.
2 2017 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 14,640,000,000 ÷ 440,199,969 = 33.26
3 Closing price as at the filing date of Monsanto Co. Annual Report.
4 2017 Calculation
P/S ratio = Share price ÷ Sales per share
= 121.52 ÷ 33.26 = 3.65
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Monsanto Co. P/S ratio increased from 2015 to 2016 and from 2016 to 2017. |
Price to Book Value (P/BV)
Monsanto Co., historical P/BV calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 440,199,969 | 437,982,595 | 439,837,164 | 484,073,332 | 525,837,818 | 534,598,091 | |
| Selected Financial Data (US$) | |||||||
| Total Monsanto Company shareowners’ equity (in millions) | 6,438) | 4,534) | 6,990) | 7,875) | 12,559) | 11,833) | |
| Book value per share (BVPS)2 | 14.63 | 10.35 | 15.89 | 16.27 | 23.88 | 22.13 | |
| Share price1, 3 | 121.52 | 102.49 | 93.73 | 112.18 | 107.62 | 88.69 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 8.31 | 9.90 | 5.90 | 6.90 | 4.51 | 4.01 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
1 Data adjusted for splits and stock dividends.
2 2017 Calculation
BVPS = Total Monsanto Company shareowners’ equity ÷ No. shares of common stock outstanding
= 6,438,000,000 ÷ 440,199,969 = 14.63
3 Closing price as at the filing date of Monsanto Co. Annual Report.
4 2017 Calculation
P/BV ratio = Share price ÷ BVPS
= 121.52 ÷ 14.63 = 8.31
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Monsanto Co. P/BV ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017. |