Export to Excel

POSCO (PKX) | Common Stock Valuation Ratios (Price Multiples)

See also

ˇ Show More

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

POSCO, current price multiples

Export to Excel
  POSCO Basic Materials
Selected Financial Data
Current share price (P) $ 94.05  
No. shares of common stock outstanding 308,131,512  
Growth rate (g) 14.09%  
 
Earnings per share (EPS) $ 12.00  
Next year expected EPS $ 14.99  
Operating profit per share $ 16.47  
Sales per share $ 174.06  
Book value per share (BVPS) $ 100.17  
Ratios (Price Multiples)
Price to earnings (P/E) 7.84 11.59
Price to next year expected earnings 6.28 12.24
Price-earnings-growth (PEG) 0.56 0.83
Price to operating profit (P/OP) 5.71 8.20
Price to sales (P/S) 0.54 1.79
Price to book value (P/BV) 0.94 2.10

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.

Historical Valuation Ratios (Summary)

POSCO, historical price multiples

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Price to earnings (P/E) 8.67 11.53 7.37 10.02 10.32
Price to operating profit (P/OP) 6.32 9.59 4.50 7.24 7.79
Price to sales (P/S) 0.60 1.01 0.77 1.13 1.32
Price to book value (P/BV) 1.04 1.20 1.17 1.46 1.56
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. POSCO's P/E ratio increased from 2008 to 2009 but then slightly declined from 2009 to 2010 not reaching 2008 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 can may use price to operating profit. POSCO's P/OP ratio increased from 2008 to 2009 but then slightly declined from 2009 to 2010 not reaching 2008 level.
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. POSCO's P/S ratio increased from 2008 to 2009 but then declined significantly from 2009 to 2010.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. POSCO's P/BV ratio increased from 2008 to 2009 but then declined significantly from 2009 to 2010.

Price to Earnings (P/E)

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  No. shares of common stock outstanding1 308,131,512 308,131,512 306,279,664 302,160,804 310,371,768
  Selected Financial Data (USD $)
Net income attribute to controlling interest (in millions) 3,698  2,766  3,470  3,803  3,564 
Earnings per share (EPS) 12.00 8.98 11.33 12.59 11.48
  Share price1, 2 104.05 103.51 83.49 126.05 118.52
  P/E Ratio, Comparison to Industry
POSCO 8.67 11.53 7.37 10.02 10.32
  Industry, Basic Materials 12.56 33.70 10.73 15.04 –
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of POSCO's Annual Report.
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. POSCO's P/E ratio increased from 2008 to 2009 but then slightly declined from 2009 to 2010 not reaching 2008 level.

Price to Operating Profit (P/OP)

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  No. shares of common stock outstanding1 308,131,512 308,131,512 306,279,664 302,160,804 310,371,768
  Selected Financial Data (USD $)
Operating income (in millions) 5,075  3,324  5,685  5,257  4,720 
Operating profit per share 16.47 10.79 18.56 17.40 15.21
  Share price1, 2 104.05 103.51 83.49 126.05 118.52
  P/OP Ratio, Comparison to Industry
POSCO 6.32 9.59 4.50 7.24 7.79
  Industry, Basic Materials 8.89 20.25 6.99 11.16 –
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of POSCO's Annual Report.
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 can may use price to operating profit. POSCO's P/OP ratio increased from 2008 to 2009 but then slightly declined from 2009 to 2010 not reaching 2008 level.

Price to Sales (P/S)

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  No. shares of common stock outstanding1 308,131,512 308,131,512 306,279,664 302,160,804 310,371,768
  Selected Financial Data (USD $)
Sales (in millions) 53,633  31,672  33,077  33,776  27,787 
Sales per share 174.06 102.79 107.99 111.78 89.53
  Share price1, 2 104.05 103.51 83.49 126.05 118.52
  P/S Ratio, Comparison to Industry
POSCO 0.60 1.01 0.77 1.13 1.32
  Industry, Basic Materials 1.94 2.07 0.98 2.35 –
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of POSCO's Annual Report.
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. POSCO's P/S ratio increased from 2008 to 2009 but then declined significantly from 2009 to 2010.

Price to Book Value (P/BV)

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  No. shares of common stock outstanding1 308,131,512 308,131,512 306,279,664 302,160,804 310,371,768
  Selected Financial Data (USD $)
Parent shareholders’ equity (in millions) 30,864  26,562  21,920  26,164  23,562 
Book value per share (BVPS) 100.17 86.20 71.57 86.59 75.91
  Share price1, 2 104.05 103.51 83.49 126.05 118.52
  P/BV Ratio, Comparison to Industry
POSCO 1.04 1.20 1.17 1.46 1.56
  Industry, Basic Materials 2.28 2.21 1.82 3.38 –
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of POSCO's Annual Report.
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's required rate of return and its actual rate of return. POSCO's P/BV ratio increased from 2008 to 2009 but then declined significantly from 2009 to 2010.

February 6, 2012

Existing users sign in

Forgot your password?

Basic Materials

Consumer Goods

Consumer Services

Health Care

Industrials

Oil & Gas

Technology

Telecommunications