Common Stock Valuation Ratios (Price Multiples)
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
AppLovin Corp., current price multiples
| 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) | $458.95 | ||||||||||||||||||||
| No. shares of common stock outstanding | 337,278,000 | ||||||||||||||||||||
| Growth rate (g) | 47.06% | ||||||||||||||||||||
| Earnings per share (EPS) | $9.88 | ||||||||||||||||||||
| Next year expected EPS | $14.54 | ||||||||||||||||||||
| Operating profit per share | $12.31 | ||||||||||||||||||||
| Sales per share | $16.25 | ||||||||||||||||||||
| Book value per share (BVPS) | $6.33 | ||||||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||||||
| Price to earnings (P/E) | 46.43 | 16.00 | 14.26 | 71.92 | — | 422.90 | 22.00 | 32.67 | 27.93 | 35.67 | 236.72 | 118.06 | 24.16 | 66.39 | 62.19 | 50.83 | 32.31 | 40.76 | |||
| Price to next year expected earnings | 31.57 | 13.73 | 10.39 | 57.09 | — | 416.66 | 24.64 | 29.02 | 21.93 | 12.68 | 234.14 | 103.07 | 22.77 | 58.40 | 53.58 | 48.98 | 26.63 | 32.35 | |||
| Price-earnings-growth (PEG) | 0.99 | 0.97 | 0.38 | 2.77 | — | 282.40 | — | 2.60 | 1.02 | 0.20 | 215.00 | 8.12 | 3.98 | 4.85 | 3.87 | 13.43 | 1.51 | 1.57 | |||
| Price to operating profit (P/OP) | 37.28 | 12.01 | 11.68 | 53.45 | — | — | 19.71 | 25.67 | 22.13 | 25.11 | 272.05 | 107.70 | 21.62 | 63.63 | 90.55 | 48.85 | 25.90 | 34.02 | |||
| Price to sales (P/S) | 28.24 | 1.76 | 4.28 | 15.06 | 21.78 | 13.29 | 3.45 | 6.71 | 10.10 | 7.73 | 85.95 | 14.52 | 4.34 | 8.74 | 11.74 | 3.69 | 8.40 | 10.50 | |||
| Price to book value (P/BV) | 72.51 | 3.94 | 8.75 | 14.57 | 23.67 | 12.21 | 7.14 | 6.41 | 8.28 | 21.70 | 52.07 | 17.11 | 3.05 | 8.95 | 2.92 | 4.51 | 8.64 | 14.17 | |||
Based on: 10-K (reporting date: 2025-12-31).
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
Based on: 10-K (reporting date: 2025-12-31), 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).
The valuation ratios exhibit considerable fluctuation over the observed period. Initial values in 2021 are followed by a period of missing information for 2022, after which a pattern of change emerges. Subsequent years demonstrate varying degrees of increase and decrease across all reported multiples.
- Price to Earnings (P/E)
- The Price to Earnings ratio begins at a very high level in 2021, then is unavailable for 2022. It decreases substantially to 56.56 in 2023, before increasing to 68.97 in 2024, and then declining again to 41.68 in 2025. This suggests significant volatility in investor expectations regarding earnings.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio is not available for 2022. It shows a marked decrease from 2021 to 2023, followed by an increase in 2024, and a subsequent decrease in 2025. The pattern mirrors that of the P/E ratio, indicating a relationship between earnings and operating profit perceptions.
- Price to Sales (P/S)
- The Price to Sales ratio decreases from 2021 to 2022, then increases in 2023, and experiences substantial growth in both 2024 and 2025. This indicates a growing premium placed on revenue relative to the company’s share price, potentially reflecting expectations of future revenue growth or a shift in market sentiment.
- Price to Book Value (P/BV)
- The Price to Book Value ratio decreases from 2021 to 2022, then increases significantly in 2023. It then experiences a dramatic increase in 2024, followed by a decrease in 2025, though remaining at a high level. This suggests a substantial change in how the market values the company’s net assets, potentially driven by changes in asset quality or perceived future profitability.
Overall, the period demonstrates considerable fluctuation in valuation multiples. The absence of 2022 figures limits a complete understanding of the immediate transition, but the subsequent years reveal a dynamic valuation landscape. The increasing Price to Sales and Price to Book Value ratios in later years, contrasted with the more moderate changes in Price to Earnings and Price to Operating Profit, suggest a potential shift in investor focus towards growth and asset valuation rather than solely on current profitability.
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Price to Earnings (P/E)
AppLovin Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 337,278,000 | 339,958,231 | 341,996,982 | 376,403,220 | 375,826,535 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to AppLovin (in thousands) | 3,333,751) | 1,579,776) | 356,711) | (192,746) | 35,446) | |
| Earnings per share (EPS)2 | 9.88 | 4.65 | 1.04 | -0.51 | 0.09 | |
| Share price1, 3 | 412.00 | 320.49 | 58.99 | 13.50 | 44.55 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 41.68 | 68.97 | 56.56 | — | 472.35 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Accenture PLC | 19.47 | 31.07 | 27.81 | 22.93 | 36.58 | |
| Adobe Inc. | 17.51 | 31.98 | 49.64 | 33.15 | 48.90 | |
| Cadence Design Systems Inc. | 72.92 | 67.09 | 78.64 | 59.70 | 53.88 | |
| CrowdStrike Holdings Inc. | — | 892.67 | — | — | — | |
| Datadog Inc. | 398.52 | 235.49 | 884.97 | — | — | |
| International Business Machines Corp. | 20.31 | 39.68 | 22.50 | 71.56 | 19.40 | |
| Intuit Inc. | 48.19 | 58.94 | 64.61 | 57.31 | 75.17 | |
| Microsoft Corp. | 37.46 | 35.67 | 33.96 | 28.34 | 35.14 | |
| Oracle Corp. | 47.60 | 37.63 | 38.96 | 26.85 | 15.84 | |
| Palantir Technologies Inc. | 195.77 | 632.38 | 246.77 | — | — | |
| Palo Alto Networks Inc. | 112.39 | 42.42 | 170.35 | — | — | |
| Salesforce Inc. | 45.28 | 71.24 | 879.57 | 135.68 | 48.20 | |
| ServiceNow Inc. | 69.85 | 146.40 | 90.80 | 284.29 | 487.70 | |
| Synopsys Inc. | 69.11 | 33.69 | 70.08 | 51.76 | 73.37 | |
| Workday Inc. | 122.85 | 50.53 | — | 1,957.29 | — | |
| P/E Ratio, Sector | ||||||
| Software & Services | 40.01 | 42.11 | 40.33 | 34.78 | 38.09 | |
| P/E Ratio, Industry | ||||||
| Information Technology | 40.64 | 45.25 | 36.08 | 26.93 | 29.73 | |
Based on: 10-K (reporting date: 2025-12-31), 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 2025 Calculation
EPS = Net income (loss) attributable to AppLovin ÷ No. shares of common stock outstanding
= 3,333,751,000 ÷ 337,278,000 = 9.88
3 Closing price as at the filing date of AppLovin Corp. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 412.00 ÷ 9.88 = 41.68
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibits significant fluctuation over the observed period. Initially high, the ratio experienced a period of unavailability before declining and stabilizing. This movement correlates with changes in both share price and earnings per share.
- P/E Ratio Trend
- In 2021, the P/E ratio was exceptionally high at 472.35. This value was not reported for 2022. A substantial decrease is then observed in 2023, with the P/E ratio falling to 56.56. The ratio continued to decline, albeit at a slower pace, to 68.97 in 2024, before further decreasing to 41.68 in 2025.
- Share Price Influence
- The share price demonstrated a decline from US$44.55 in 2021 to US$13.50 in 2022. A significant recovery occurred in subsequent years, reaching US$58.99 in 2023, US$320.49 in 2024, and US$412.00 in 2025. This upward trend in share price likely contributed to the changing P/E ratio, particularly in the later years.
- Earnings Per Share Influence
- Earnings per share were US$0.09 in 2021, followed by a loss of US$0.51 in 2022. Earnings then turned positive, increasing to US$1.04 in 2023, US$4.65 in 2024, and US$9.88 in 2025. The return to profitability and subsequent earnings growth are key factors in the observed decline of the P/E ratio from 2023 onwards.
The unavailable P/E ratio for 2022 is likely due to the negative earnings per share reported for that year, rendering the ratio meaningless. The subsequent trend suggests a growing investor confidence, reflected in both the increasing share price and improving earnings, leading to a more reasonable P/E ratio by 2025.
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Price to Operating Profit (P/OP)
AppLovin Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 337,278,000 | 339,958,231 | 341,996,982 | 376,403,220 | 375,826,535 | |
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in thousands) | 4,151,914) | 1,873,459) | 648,207) | (47,791) | 150,016) | |
| Operating profit per share2 | 12.31 | 5.51 | 1.90 | -0.13 | 0.40 | |
| Share price1, 3 | 412.00 | 320.49 | 58.99 | 13.50 | 44.55 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 33.47 | 58.16 | 31.12 | — | 111.61 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Accenture PLC | 14.62 | 23.52 | 21.69 | 16.83 | 28.35 | |
| Adobe Inc. | 14.34 | 26.38 | 40.52 | 25.85 | 40.64 | |
| Cadence Design Systems Inc. | 54.20 | 52.42 | 65.43 | 47.21 | 48.13 | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| Datadog Inc. | — | 797.11 | — | — | — | |
| International Business Machines Corp. | 18.20 | 25.48 | 17.99 | 14.35 | 16.23 | |
| Intuit Inc. | 37.87 | 48.11 | 49.04 | 46.05 | 62.00 | |
| Microsoft Corp. | 29.68 | 28.73 | 27.76 | 24.72 | 30.79 | |
| Oracle Corp. | 33.50 | 25.65 | 25.30 | 16.51 | 14.31 | |
| Palantir Technologies Inc. | 224.99 | 941.61 | 431.61 | — | — | |
| Palo Alto Networks Inc. | 102.53 | 159.88 | 193.40 | — | — | |
| Salesforce Inc. | 38.94 | 58.80 | 177.62 | 357.52 | 431.39 | |
| ServiceNow Inc. | 66.94 | 152.95 | 206.26 | 260.27 | 436.46 | |
| Synopsys Inc. | 100.63 | 56.25 | 67.90 | 43.85 | 75.64 | |
| Workday Inc. | 155.71 | 381.31 | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Software & Services | 32.08 | 34.32 | 32.29 | 27.53 | 34.16 | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 33.92 | 35.11 | 30.04 | 22.85 | 26.25 | |
Based on: 10-K (reporting date: 2025-12-31), 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 2025 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= 4,151,914,000 ÷ 337,278,000 = 12.31
3 Closing price as at the filing date of AppLovin Corp. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 412.00 ÷ 12.31 = 33.47
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited significant fluctuations over the observed period. Initially high, the ratio experienced a period of unavailability before declining and stabilizing. The share price and operating profit per share both demonstrate substantial changes, influencing the P/OP ratio’s trajectory.
- P/OP Ratio Trend
- In 2021, the P/OP ratio stood at a high of 111.61. A value was not reported for 2022. The ratio then decreased considerably to 31.12 in 2023, indicating a potential shift in market valuation relative to operating profitability. Further increases were observed in 2024 and 2025, reaching 58.16 and 33.47 respectively. The 2025 value represents a decrease from the 2024 peak, but remains significantly lower than the 2021 level.
- Share Price Movement
- The share price experienced a dramatic decline from US$44.55 in 2021 to US$13.50 in 2022. A substantial recovery occurred in subsequent years, with the price rising to US$58.99 in 2023, US$320.49 in 2024, and US$412.00 in 2025. This upward trend in share price likely contributed to the changes observed in the P/OP ratio.
- Operating Profit Per Share
- Operating profit per share was US$0.40 in 2021, followed by a negative value of -US$0.13 in 2022. A strong positive turnaround was evident in 2023, with operating profit per share reaching US$1.90. Continued growth was observed in 2024 (US$5.51) and 2025 (US$12.31). The increasing operating profit per share, particularly from 2022 onwards, played a key role in the P/OP ratio’s evolution.
The interplay between the share price and operating profit per share resulted in a dynamic P/OP ratio. The initial high ratio in 2021, followed by the period of unavailable information and subsequent fluctuations, suggests a period of significant change and potential re-evaluation by the market. The recent stabilization of the P/OP ratio, despite continued growth in share price, may indicate a more balanced valuation.
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Price to Sales (P/S)
AppLovin Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 337,278,000 | 339,958,231 | 341,996,982 | 376,403,220 | 375,826,535 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | 5,480,717) | 4,709,248) | 3,283,087) | 2,817,058) | 2,793,104) | |
| Sales per share2 | 16.25 | 13.85 | 9.60 | 7.48 | 7.43 | |
| Share price1, 3 | 412.00 | 320.49 | 58.99 | 13.50 | 44.55 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 25.35 | 23.14 | 6.14 | 1.80 | 5.99 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Accenture PLC | 2.15 | 3.48 | 2.98 | 2.56 | 4.28 | |
| Adobe Inc. | 5.25 | 8.27 | 13.88 | 8.95 | 14.94 | |
| Cadence Design Systems Inc. | 15.27 | 15.26 | 20.02 | 14.23 | 12.55 | |
| CrowdStrike Holdings Inc. | 19.36 | 26.10 | 12.81 | 30.15 | 48.70 | |
| Datadog Inc. | 12.53 | 16.12 | 20.19 | 14.64 | 49.25 | |
| International Business Machines Corp. | 3.19 | 3.81 | 2.73 | 1.94 | 1.94 | |
| Intuit Inc. | 9.90 | 10.72 | 10.72 | 9.30 | 16.09 | |
| Microsoft Corp. | 13.54 | 12.82 | 11.60 | 10.40 | 12.81 | |
| Oracle Corp. | 10.32 | 7.44 | 6.63 | 4.25 | 5.38 | |
| Palantir Technologies Inc. | 71.09 | 102.00 | 23.27 | 9.34 | 15.58 | |
| Palo Alto Networks Inc. | 13.82 | 13.62 | 10.87 | 9.62 | 10.72 | |
| Salesforce Inc. | 7.40 | 8.45 | 5.84 | 7.40 | 9.24 | |
| ServiceNow Inc. | 9.20 | 18.99 | 17.52 | 12.75 | 19.02 | |
| Synopsys Inc. | 13.05 | 12.45 | 14.75 | 10.03 | 13.22 | |
| Workday Inc. | 7.65 | 9.61 | 7.71 | 11.19 | 13.95 | |
| P/S Ratio, Sector | ||||||
| Software & Services | 10.41 | 10.40 | 8.78 | 7.45 | 9.54 | |
| P/S Ratio, Industry | ||||||
| Information Technology | 10.47 | 9.34 | 7.33 | 6.01 | 6.99 | |
Based on: 10-K (reporting date: 2025-12-31), 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 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 5,480,717,000 ÷ 337,278,000 = 16.25
3 Closing price as at the filing date of AppLovin Corp. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 412.00 ÷ 16.25 = 25.35
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited significant fluctuations over the observed period. Initially, the ratio decreased substantially before increasing markedly in later years. This analysis details the observed trends and potential implications.
- Overall Trend
- The price-to-sales ratio began at 5.99 in 2021, decreased to a low of 1.80 in 2022, and then increased consistently through 2025, reaching 25.35. This represents a substantial increase from the 2022 value.
- 2021 to 2022
- A considerable decline in the price-to-sales ratio occurred between 2021 and 2022. This decrease coincided with a decline in the share price from US$44.55 to US$13.50, while sales per share remained relatively stable. The ratio’s reduction suggests a potential re-evaluation of the company’s valuation relative to its sales during this period.
- 2022 to 2025
- From 2022 to 2025, the price-to-sales ratio demonstrated a strong upward trend. This increase was driven by a combination of rising share prices and increasing sales per share. The share price increased from US$13.50 in 2022 to US$412.00 in 2025, while sales per share rose from US$7.48 to US$16.25. The accelerating increase in the ratio during this period indicates growing investor confidence or potentially speculative behavior.
- Sales per Share Contribution
- Sales per share increased consistently throughout the period, contributing to the overall increase in the price-to-sales ratio in the later years. While the share price was the dominant factor in the ratio’s fluctuations, the growth in sales per share supported the increasing valuation.
- Ratio Magnitude
- The price-to-sales ratio in 2024 and 2025 (23.14 and 25.35 respectively) is substantially higher than the values observed in 2021, 2022, and 2023. These higher ratios suggest that investors are willing to pay a significant premium for each dollar of sales, potentially indicating high growth expectations or a perceived competitive advantage.
In summary, the price-to-sales ratio experienced a period of decline followed by substantial growth. The latter portion of the period was characterized by a rapidly increasing ratio, driven by both share price appreciation and growth in sales per share.
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Price to Book Value (P/BV)
AppLovin Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 337,278,000 | 339,958,231 | 341,996,982 | 376,403,220 | 375,826,535 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | 2,134,671) | 1,089,818) | 1,256,329) | 1,902,677) | 2,138,090) | |
| Book value per share (BVPS)2 | 6.33 | 3.21 | 3.67 | 5.05 | 5.69 | |
| Share price1, 3 | 412.00 | 320.49 | 58.99 | 13.50 | 44.55 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 65.10 | 99.97 | 16.06 | 2.67 | 7.83 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Accenture PLC | 4.79 | 7.98 | 7.44 | 7.13 | 11.06 | |
| Adobe Inc. | 10.74 | 12.61 | 16.31 | 11.22 | 15.94 | |
| Cadence Design Systems Inc. | 14.77 | 15.15 | 24.05 | 18.46 | 13.68 | |
| CrowdStrike Holdings Inc. | 23.34 | 34.61 | 19.61 | 42.67 | 48.91 | |
| Datadog Inc. | 11.50 | 15.94 | 21.22 | 17.39 | 48.66 | |
| International Business Machines Corp. | 6.59 | 8.75 | 7.49 | 5.34 | 5.90 | |
| Intuit Inc. | 9.46 | 9.47 | 8.92 | 7.20 | 15.71 | |
| Microsoft Corp. | 11.11 | 11.71 | 11.92 | 12.38 | 15.16 | |
| Oracle Corp. | 28.96 | 45.25 | 308.71 | — | 41.57 | |
| Palantir Technologies Inc. | 43.07 | 58.42 | 14.90 | 6.94 | 10.48 | |
| Palo Alto Networks Inc. | 16.29 | 21.15 | 42.84 | 252.00 | 71.88 | |
| Salesforce Inc. | 4.59 | 4.94 | 3.13 | 3.37 | 4.73 | |
| ServiceNow Inc. | 9.42 | 21.71 | 20.60 | 18.36 | 30.36 | |
| Synopsys Inc. | 3.25 | 8.48 | 14.02 | 9.24 | 10.50 | |
| Workday Inc. | 7.15 | 8.63 | 8.58 | 12.68 | 18.38 | |
| P/BV Ratio, Sector | ||||||
| Software & Services | 10.70 | 12.08 | 11.43 | 10.64 | 13.62 | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 14.13 | 13.29 | 11.49 | 10.46 | 12.54 | |
Based on: 10-K (reporting date: 2025-12-31), 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 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 2,134,671,000 ÷ 337,278,000 = 6.33
3 Closing price as at the filing date of AppLovin Corp. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 412.00 ÷ 6.33 = 65.10
5 Click competitor name to see calculations.
The price to book value (P/BV) ratio exhibited significant fluctuations over the observed period. Initially, the ratio demonstrated a substantial decline followed by a period of considerable increase and subsequent moderation.
- Overall Trend
- The P/BV ratio began at 7.83 in 2021, decreased sharply to 2.67 in 2022, then increased dramatically to 16.06 in 2023. This upward momentum continued into 2024, reaching a peak of 99.97, before decreasing to 65.10 in 2025.
- 2021-2022
- A marked decrease in the P/BV ratio occurred between 2021 and 2022. This decline coincided with a decrease in share price from US$44.55 to US$13.50, while the book value per share experienced a more moderate reduction, from US$5.69 to US$5.05. The larger percentage decrease in share price contributed to the lower P/BV ratio.
- 2022-2024
- From 2022 to 2024, the P/BV ratio increased substantially. The share price rose significantly, from US$13.50 to US$320.49, while the book value per share decreased from US$5.05 to US$3.21. The substantial increase in share price, coupled with the decreasing book value per share, drove the P/BV ratio to its highest point in the observed period.
- 2024-2025
- The P/BV ratio decreased from 99.97 in 2024 to 65.10 in 2025. This decrease was driven by a slower rate of increase in share price (from US$320.49 to US$412.00) and a notable increase in book value per share (from US$3.21 to US$6.33). The increase in book value per share partially offset the impact of the rising share price, resulting in a lower P/BV ratio.
The volatility in the P/BV ratio suggests a dynamic relationship between market perception of the company’s value and its underlying book value. The significant increase in 2023 and 2024 warrants further investigation to understand the factors driving the market’s increased valuation relative to book value.
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