Stock Analysis on Net

AppLovin Corp. (NASDAQ:APP)

$24.99

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

AppLovin Corp., current price multiples

Microsoft Excel
AppLovin Corp. Accenture PLC Adobe Inc. Cadence Design Systems Inc. CrowdStrike Holdings Inc. Datadog Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palantir Technologies Inc. Palo Alto Networks Inc. Salesforce Inc. ServiceNow Inc. Synopsys Inc. Workday Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P)
No. shares of common stock outstanding
Growth rate (g)
 
Earnings per share (EPS)
Next year expected EPS
Operating profit per share
Sales per share
Book value per share (BVPS)
Valuation Ratios (Price Multiples)
Price to earnings (P/E)
Price to next year expected earnings
Price-earnings-growth (PEG)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

Based on: 10-K (reporting date: 2024-12-31).

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)

AppLovin Corp., historical price multiples

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Price to earnings (P/E)
Price to operating profit (P/OP)
Price to sales (P/S)
Price to book value (P/BV)

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).


Price to earnings (P/E) ratio
The P/E ratio exhibited a sharp decline from a very high value of 472.35 at the end of 2021 to 56.56 in 2023, indicating a substantial reduction in market valuation relative to earnings over this period. However, in 2024, the ratio increased again to 68.97, suggesting some rebound or increased investor confidence following the decline.
Price to operating profit (P/OP) ratio
Similar to the P/E ratio, the P/OP ratio decreased notably from 111.61 in 2021 to 31.12 in 2023, reflecting a considerable improvement in operating profitability relative to market price. In 2024, the ratio increased to 58.16, which may indicate either a reduced operating profit margin or a higher market price relative to operating profits during this year.
Price to sales (P/S) ratio
The P/S ratio displayed mixed trends. It dropped sharply from 5.99 in 2021 to 1.8 in 2022, suggesting a lower valuation relative to sales at that time. Then it rose again to 6.14 in 2023 and surged dramatically to 23.14 by the end of 2024. This marked increase in 2024 indicates a strong market premium on the company's sales relative to previous years.
Price to book value (P/BV) ratio
The P/BV ratio demonstrated significant volatility. After declining from 7.83 in 2021 to 2.67 in 2022, it rose substantially to 16.06 in 2023 and then surged to an exceptionally high level of 99.97 in 2024. This considerable increase suggests that the market valuation relative to the company's net asset value expanded dramatically, which could reflect strong investor optimism, intangible asset valuation, or other market dynamics.

Price to Earnings (P/E)

AppLovin Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
No. shares of common stock outstanding1
Selected Financial Data (US$)
Net income (loss) attributable to AppLovin (in thousands)
Earnings per share (EPS)2
Share price1, 3
Valuation Ratio
P/E ratio4
Benchmarks
P/E Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/E Ratio, Sector
Software & Services
P/E Ratio, Industry
Information Technology

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
EPS = Net income (loss) attributable to AppLovin ÷ No. shares of common stock outstanding
= ÷ =

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

4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =

5 Click competitor name to see calculations.


Share Price
The share price shows significant volatility over the analyzed period. Initially, there is a sharp decline from 44.55 USD at the end of 2021 to 13.5 USD at the end of 2022, representing a substantial depreciation. This is followed by a strong recovery and appreciable growth, rising to 58.99 USD in 2023 and dramatically increasing to 320.49 USD by the end of 2024. The final value indicates a substantial gain compared to both the initial and mid-period values.
Earnings per Share (EPS)
The EPS exhibits considerable fluctuations during the periods. In 2021, the EPS was a modest positive figure at 0.09 USD, which then turned negative to -0.51 USD in 2022, suggesting a loss attributable to shareholders in that year. Recovery is evident starting in 2023 when EPS climbs back to a positive 1.04 USD, and further improves significantly to 4.65 USD in 2024. This trend reflects the company’s improved profitability and earnings capacity over time.
Price-to-Earnings (P/E) Ratio
The P/E ratio displays inconsistent movements corresponding primarily to changes in earnings and share price. In 2021, the P/E ratio is extremely high at 472.35, which often implies either overvaluation or low earnings relative to price. There is no available ratio for 2022, likely due to negative earnings which make the ratio undefined. For 2023, the P/E ratio decreases markedly to 56.56, indicating a more normalized valuation consistent with improved earnings. In 2024, the ratio rises slightly to 68.97, suggesting the market is pricing the company's earnings more highly, possibly due to anticipated growth or other positive investor sentiment.

Price to Operating Profit (P/OP)

AppLovin Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
No. shares of common stock outstanding1
Selected Financial Data (US$)
Income (loss) from operations (in thousands)
Operating profit per share2
Share price1, 3
Valuation Ratio
P/OP ratio4
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/OP Ratio, Sector
Software & Services
P/OP Ratio, Industry
Information Technology

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= ÷ =

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

4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =

5 Click competitor name to see calculations.


Share Price Trend
The share price exhibited notable volatility over the analyzed periods. Initially declining sharply from 44.55 US$ at the end of 2021 to 13.5 US$ by the end of 2022, it subsequently experienced a significant recovery and growth, reaching 58.99 US$ at the end of 2023 and dramatically increasing further to 320.49 US$ by the end of 2024. This pattern indicates heightened market optimism or positive company developments in the latter years.
Operating Profit Per Share
Operating profit per share displayed fluctuations consistent with the share price movements. It started at 0.4 US$ in 2021 but turned negative to -0.13 US$ in 2022, reflecting operational challenges or increased costs during that year. Thereafter, there was a substantial improvement to 1.9 US$ in 2023, followed by a robust increase to 5.51 US$ in 2024, signifying enhanced operational efficiency and profitability over time.
Price to Operating Profit Ratio (P/OP)
The P/OP ratio was very high at 111.61 in 2021, suggesting that the market price was significantly elevated relative to operating profit per share at that time. No ratio is reported for 2022, likely due to negative operating profit making the ratio undefined or non-meaningful. In 2023, the ratio fell to 31.12, indicating that the share price aligned more closely with the operating profit improvements. However, the ratio increased again to 58.16 in 2024 despite rising operating profit, reflecting the share price’s even faster growth pace relative to operating profit.
Overall Insights
The data reveals a company experiencing operational difficulties in 2022, as indicated by the negative operating profit per share and a low share price. A strong recovery occurred in the two subsequent years, with consistent profitability gains and a rapidly rising share price. The oscillation in the P/OP ratio suggests fluctuating market expectations or changing risk perceptions, particularly as the share price outpaced earnings growth in the final year.

Price to Sales (P/S)

AppLovin Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
No. shares of common stock outstanding1
Selected Financial Data (US$)
Revenue (in thousands)
Sales per share2
Share price1, 3
Valuation Ratio
P/S ratio4
Benchmarks
P/S Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/S Ratio, Sector
Software & Services
P/S Ratio, Industry
Information Technology

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =

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

4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =

5 Click competitor name to see calculations.


Share Price
The share price experienced significant volatility over the observed period. Initially, it declined sharply from 44.55 US dollars at the end of 2021 to 13.5 US dollars by the end of 2022. Subsequently, a notable recovery occurred, with the share price rising to 58.99 US dollars in 2023 and then surging dramatically to 320.49 US dollars in 2024.
Sales per Share
Sales per share demonstrated a steady upward trend throughout the periods. From 7.43 US dollars at the end of 2021, it saw a minor increase to 7.48 US dollars in 2022. This figure then rose more markedly to 9.6 US dollars in 2023 and continued to grow to 13.85 US dollars by the end of 2024.
Price-to-Sales (P/S) Ratio
The P/S ratio mirrored the fluctuations in the share price and sales per share. It dropped from 5.99 in 2021 to a significant low of 1.8 in 2022, reflecting the sharp share price decrease relative to sales. The ratio then recovered to 6.14 in 2023 and escalated sharply to 23.14 by 2024, indicating a substantial increase in market valuation relative to sales.

Price to Book Value (P/BV)

AppLovin Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
No. shares of common stock outstanding1
Selected Financial Data (US$)
Stockholders’ equity (in thousands)
Book value per share (BVPS)2
Share price1, 3
Valuation Ratio
P/BV ratio4
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Datadog Inc.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
P/BV Ratio, Sector
Software & Services
P/BV Ratio, Industry
Information Technology

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 Data adjusted for splits and stock dividends.

2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =

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

4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =

5 Click competitor name to see calculations.


The financial data reveals significant volatility in the share price of the company over the observed period. The share price decreased sharply from $44.55 at the end of 2021 to $13.50 at the end of 2022, indicating a considerable drop in market valuation during that year. Subsequently, the share price experienced a strong recovery and substantial growth, rising to $58.99 by the end of 2023, and then reaching an exceptionally high level of $320.49 by the end of 2024.

In contrast, the book value per share (BVPS) shows a continuous downward trend throughout the entire period. It declined from $5.69 at the end of 2021 to $5.05 in 2022, followed by a further decrease to $3.67 in 2023 and reaching $3.21 at the end of 2024. This indicates a gradual reduction in the net asset value attributable to each outstanding share.

The price-to-book value (P/BV) ratio correspondingly reflects the dynamics of both the share price and the BVPS. The ratio dropped from 7.83 at the end of 2021 to 2.67 in 2022, consistent with the share price decline and relatively stable BVPS. However, from 2022 onwards, the ratio increased sharply, reaching 16.06 in 2023 and an extraordinarily high level of 99.97 by the end of 2024. This dramatic increase suggests a strong market premium over the company's book value, possibly reflecting elevated investor expectations or speculative market behavior.

Overall, the data highlights a company experiencing declining net asset value per share alongside extreme fluctuations in market valuation. The disproportionate rise in share price relative to book value in the latter period could prompt further investigation into the underlying drivers, including growth prospects, market sentiment, or other external factors influencing valuation metrics.