Stock Analysis on Net

AppLovin Corp. (NASDAQ:APP)

Price to Earnings (P/E) 
since 2021

Microsoft Excel

Calculation

AppLovin Corp., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of AppLovin Corp. Annual Report.


The financial data exhibits notable fluctuations in several key metrics over the observed periods.

Share Price
The share price initially decreased significantly from $44.55 to $13.50. However, in the subsequent years, there was a pronounced recovery and substantial growth, with the price rising sharply to $58.99 and then escalating to $320.49 by the latest period. This indicates strong market confidence and possibly improved company performance or market conditions in the most recent year.
Earnings Per Share (EPS)
The EPS showed volatility with an initial minor positive value of $0.09, followed by a decline into negative territory at -$0.51, signifying a loss during the second period. The company then experienced a marked improvement, achieving positive EPS values of $1.04 and subsequently $4.65, suggesting enhanced profitability and operational efficiency over the latter years.
Price-to-Earnings (P/E) Ratio
The P/E ratio was extremely high at 472.35 initially, indicating possibly overvalued shares or low earnings in the early stage. There is a missing P/E value for the second period, likely due to negative earnings which render the ratio undefined. In the later periods, the P/E ratio stabilized to more moderate levels of 56.56 and 68.97, reflecting improved earnings relative to share price, although still indicative of high growth expectations from the market.

Overall, the company experienced a phase of financial challenge as evidenced by negative earnings and a sharp decline in share price, followed by a robust recovery characterized by strong growth in share value and earnings. The evolving P/E ratios align with this narrative, moving from extremely high to high but more sustainable levels, signaling investor optimism aligned with improved profitability.


Comparison to Competitors

AppLovin Corp., P/E, long-term trends, comparison to competitors

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Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).


Comparison to Sector (Software & Services)

AppLovin Corp., P/E, long-term trends, comparison to sector (software & services)

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Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).


Comparison to Industry (Information Technology)

AppLovin Corp., P/E, long-term trends, comparison to industry (information technology)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).