Price to Operating Profit (P/OP)
since 2008
Calculation
Activision Blizzard Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 23, 2023 | 36.19 | = | 77.07 | ÷ | 2.13 | 2.13 | = | 1,670 | ÷ | 784,274,126 | |
| Feb 25, 2022 | 19.47 | = | 81.44 | ÷ | 4.18 | 4.18 | = | 3,259 | ÷ | 779,234,888 | |
| Feb 23, 2021 | 27.32 | = | 96.42 | ÷ | 3.53 | 3.53 | = | 2,734 | ÷ | 774,753,965 | |
| Feb 27, 2020 | 27.92 | = | 58.33 | ÷ | 2.09 | 2.09 | = | 1,607 | ÷ | 769,221,524 | |
| Feb 28, 2019 | 16.19 | = | 42.14 | ÷ | 2.60 | 2.60 | = | 1,988 | ÷ | 763,833,873 | |
| Feb 27, 2018 | 42.08 | = | 72.61 | ÷ | 1.73 | 1.73 | = | 1,309 | ÷ | 758,631,663 | |
| Feb 28, 2017 | 24.03 | = | 45.13 | ÷ | 1.88 | 1.88 | = | 1,412 | ÷ | 751,846,958 | |
| Feb 29, 2016 | 17.65 | = | 31.67 | ÷ | 1.79 | 1.79 | = | 1,319 | ÷ | 734,998,115 | |
| Feb 26, 2015 | 14.27 | = | 23.35 | ÷ | 1.64 | 1.64 | = | 1,183 | ÷ | 722,918,352 | |
| Mar 3, 2014 | 10.14 | = | 19.52 | ÷ | 1.93 | 1.93 | = | 1,372 | ÷ | 712,370,652 | |
| Feb 22, 2013 | 11.14 | = | 14.51 | ÷ | 1.30 | 1.30 | = | 1,451 | ÷ | 1,113,696,788 | |
| Feb 28, 2012 | 10.20 | = | 12.06 | ÷ | 1.18 | 1.18 | = | 1,328 | ÷ | 1,122,866,712 | |
| Feb 25, 2011 | 28.01 | = | 11.11 | ÷ | 0.40 | 0.40 | = | 469 | ÷ | 1,182,249,613 | |
| Mar 1, 2010 | — | = | 10.94 | ÷ | -0.02 | -0.02 | = | -26 | ÷ | 1,249,909,250 | |
| Feb 27, 2009 | — | = | 10.03 | ÷ | -0.18 | -0.18 | = | -233 | ÷ | 1,307,215,125 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Activision Blizzard Inc. Annual Report.
The financial trajectory between 2009 and 2023 is characterized by a transition from operational losses to sustained profitability, accompanied by significant volatility in the Price to Operating Profit (P/OP) ratio.
- Operational Profitability Trends
- Operating profit per share was negative during 2009 and 2010, reflecting a period of operational deficit. A transition to profitability occurred in 2011, with operating profit per share growing from 0.40 in 2011 to a peak of 4.18 in 2022. However, a notable decline is observed in 2023, where operating profit per share dropped to 2.13.
- P/OP Ratio Evolution
- The P/OP ratio exhibits three distinct phases. Following the return to profitability in 2011, the ratio initially sat at 28.01 before compressing to a stable range between 10.14 and 11.14 from 2012 to 2014. This was followed by a period of aggressive expansion, with the ratio peaking at 42.08 in 2018, indicating that the share price grew at a rate significantly exceeding that of operating profits.
- Market Valuation and Profit Correlation
- A sharp correction is observed in 2019, as the P/OP ratio fell to 16.19. Between 2020 and 2022, the ratio remained relatively moderate, fluctuating between 19.47 and 27.92, even as the share price reached its historical maximum of 96.42 in 2021. In 2023, the ratio spiked to 36.19; this increase was not driven by a rise in share price, which declined to 77.07, but rather by the substantial contraction in operating profit per share.
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Comparison to Competitors
Activision Blizzard Inc., P/OP, long-term trends, comparison to competitors
| Activision Blizzard Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | |
|---|---|---|---|---|---|
| Feb 23, 2023 | 36.19 | 18.01 | 12.00 | 16.91 | 28.85 |
| Feb 25, 2022 | 19.47 | 24.86 | 10.89 | 13.84 | 27.71 |
| Feb 23, 2021 | 27.32 | 33.85 | 13.47 | 23.10 | 52.02 |
| Feb 27, 2020 | 27.92 | 29.05 | 9.51 | 24.90 | 57.83 |
| Feb 28, 2019 | 16.19 | 30.27 | 8.71 | 19.10 | 89.46 |
| Feb 27, 2018 | 42.08 | 28.74 | 10.98 | 27.76 | 147.26 |
| Feb 28, 2017 | 24.03 | 23.36 | 10.61 | 30.46 | 161.49 |
| Feb 29, 2016 | 17.65 | 24.29 | 9.07 | 49.89 | 132.14 |
| Feb 26, 2015 | 14.27 | 21.78 | 10.12 | 43.72 | 66.68 |
| Mar 3, 2014 | 10.14 | 28.56 | 10.62 | 56.90 | 105.97 |
| Feb 22, 2013 | 11.14 | 19.47 | 8.69 | 131.64 | 184.25 |
| Feb 28, 2012 | 10.20 | 15.73 | 7.53 | — | 18.26 |
| Feb 25, 2011 | 28.01 | 19.34 | 8.79 | — | 43.86 |
| Mar 1, 2010 | — | 20.40 | 6.35 | — | 18.16 |
| Feb 27, 2009 | — | 17.00 | 5.49 | — | 17.24 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31).