Price to Operating Profit (P/OP)
since 2021
Calculation
AppLovin Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income (loss) from operations1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2025 | 58.16 | = | 320.49 | ÷ | 5.51 | 5.51 | = | 1,873,459 | ÷ | 339,958,231 | |
| Feb 26, 2024 | 31.12 | = | 58.99 | ÷ | 1.90 | 1.90 | = | 648,207 | ÷ | 341,996,982 | |
| Feb 28, 2023 | — | = | 13.50 | ÷ | -0.13 | -0.13 | = | -47,791 | ÷ | 376,403,220 | |
| Mar 11, 2022 | 111.61 | = | 44.55 | ÷ | 0.40 | 0.40 | = | 150,016 | ÷ | 375,826,535 |
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.
- Share Price
- The share price experienced significant fluctuations over the observed periods. Initially, it declined sharply from $44.55 to $13.50, indicating a period of negative market sentiment or operational challenges. Subsequently, there was a notable recovery to $58.99, followed by an exceptional increase to $320.49, suggesting a strong improvement in market perception or business performance by the final period.
- Operating Profit Per Share
- Operating profit per share displayed a volatile trend. It began at a positive $0.40, dropped to a negative $0.13, indicating a loss during the second period, before recovering robustly to $1.90 and increasing significantly to $5.51. This pattern indicates a turnaround from operational losses to substantial profitability.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio was extremely high at 111.61 initially, reflecting either an overvaluation of the share price relative to operating profit or very low operating profit. The ratio was unavailable for the second period, limiting trend analysis. Subsequently, it dropped significantly to 31.12, suggesting an improved relationship between share price and operating profit, although still relatively high. In the final period, it increased again to 58.16, which could indicate that the share price rose faster than operating profit or expectations of future growth influenced valuation.
Comparison to Competitors
AppLovin Corp., P/OP, long-term trends, comparison to competitors
| AppLovin Corp. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2025 | 58.16 | 23.52 | 26.38 | 52.42 | — | 797.11 | 48.11 | 28.73 | 25.65 | 941.61 | 159.88 | 58.80 | 152.95 | 56.25 | 381.31 |
| Feb 26, 2024 | 31.12 | 21.69 | 40.52 | 65.43 | — | — | 49.04 | 27.76 | 25.30 | 431.61 | 193.40 | 177.62 | 206.26 | 67.90 | — |
| Feb 28, 2023 | — | 16.83 | 25.85 | 47.21 | — | — | 46.05 | 24.72 | 16.51 | — | — | 357.52 | 260.26 | 43.85 | — |
| Mar 11, 2022 | 111.61 | 28.35 | 40.64 | 48.13 | — | — | 62.00 | 30.79 | 14.31 | — | — | 431.39 | 436.46 | 75.64 | — |
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).