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
Apple Inc., current price multiples
| Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | Technology Hardware & Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $209.11 | |||||||||
| No. shares of common stock outstanding | 14,935,826,000 | |||||||||
| Growth rate (g) | 106.18% | |||||||||
| Earnings per share (EPS) | $6.28 | |||||||||
| Next year expected EPS | $12.94 | |||||||||
| Operating profit per share | $8.25 | |||||||||
| Sales per share | $26.18 | |||||||||
| Book value per share (BVPS) | $3.81 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 33.32 | 47.28 | 25.78 | 18.58 | 27.53 | 32.72 | 57.73 | |||
| Price to next year expected earnings | 16.16 | 37.78 | 22.68 | 6.84 | 23.57 | 18.47 | 46.07 | |||
| Price-earnings-growth (PEG) | 0.31 | 1.88 | 1.89 | 0.11 | 1.64 | 0.42 | 2.28 | |||
| Price to operating profit (P/OP) | 25.35 | 45.79 | 21.84 | 13.68 | 26.21 | 25.15 | 44.75 | |||
| Price to sales (P/S) | 7.99 | 19.26 | 4.94 | 0.89 | 2.12 | 6.56 | 11.91 | |||
| Price to book value (P/BV) | 54.84 | 13.49 | 5.85 | — | 5.86 | 31.55 | 16.96 | |||
Based on: 10-K (reporting date: 2024-09-28).
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)
Apple Inc., historical price multiples
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio shows an overall upward trend from 20 in 2019 to 35.95 in 2024. There was a notable increase from 20 in 2019 to 32.24 in 2020, followed by a decline to 24.82 in 2022. Afterward, the ratio rose again, reaching the highest value in 2024. This pattern suggests fluctuating investor sentiment towards earnings, with a general increase in the multiple investors are willing to pay over the period.
- Price to Operating Profit (P/OP) Ratio
- The price to operating profit ratio experienced significant growth from 17.29 in 2019 to a peak of 27.92 in 2020. It then declined steadily to 20.74 in 2022 before increasing again to 27.35 in 2024. This indicates variability in market valuation relative to operating profit, with investors valuing operating profit more conservatively during the mid-period, followed by renewed optimism.
- Price to Sales (P/S) Ratio
- The price to sales ratio has generally increased over the years, rising from 4.25 in 2019 to 8.62 in 2024. The ratio grew sharply between 2019 and 2020, and remained relatively stable with minor fluctuations until 2022, after which it resumed its upward trajectory. This trend reflects increasing market valuation relative to sales revenue, implying enhanced confidence in the company’s sales growth or profitability potential.
- Price to Book Value (P/BV) Ratio
- The price to book value ratio shows the most marked increase among the ratios, escalating from 12.21 in 2019 to 59.17 in 2024. The rise was especially steep from 2020 onwards, reaching a peak of 48.89 in 2022, with a slight dip in 2023 before rising again in 2024. This substantial growth suggests that the market's valuation of the company's net asset value has intensified significantly, possibly reflecting expectations of strong future growth or intangible asset value not captured in book figures.
Price to Earnings (P/E)
Apple Inc., historical P/E calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 15,115,823,000 | 15,552,752,000 | 15,908,118,000 | 16,406,397,000 | 17,001,802,000 | 17,773,060,000 | |
| Selected Financial Data (US$) | |||||||
| Net income (in millions) | 93,736) | 96,995) | 99,803) | 94,680) | 57,411) | 55,256) | |
| Earnings per share (EPS)2 | 6.20 | 6.24 | 6.27 | 5.77 | 3.38 | 3.11 | |
| Share price1, 3 | 222.91 | 176.65 | 155.74 | 149.80 | 108.86 | 62.19 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 35.95 | 28.33 | 24.82 | 25.96 | 32.24 | 20.00 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Arista Networks Inc. | 45.95 | 39.77 | 32.05 | 47.57 | 37.42 | — | |
| Cisco Systems Inc. | 19.00 | 18.26 | 15.78 | 23.34 | 15.46 | 17.69 | |
| Dell Technologies Inc. | 25.12 | 11.94 | 7.31 | 20.88 | 6.21 | — | |
| Super Micro Computer Inc. | 23.45 | 21.10 | 12.72 | 16.15 | 17.04 | 15.81 | |
| P/E Ratio, Sector | |||||||
| Technology Hardware & Equipment | 34.19 | 27.04 | 23.16 | 25.71 | 28.10 | — | |
| P/E Ratio, Industry | |||||||
| Information Technology | 45.10 | 35.92 | 26.81 | 29.49 | 31.10 | — | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 93,736,000,000 ÷ 15,115,823,000 = 6.20
3 Closing price as at the filing date of Apple Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 222.91 ÷ 6.20 = 35.95
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a steady and significant upward trend over the observed six-year period. Starting at $62.19 in September 2019, the price rose consistently each year, reaching $222.91 by September 2024. The increase represents a more than threefold growth, indicating strong market performance and investor confidence.
- Earnings Per Share (EPS)
- EPS showed an overall positive trajectory, growing from $3.11 in September 2019 to a peak of $6.27 in September 2022. Following this peak, EPS slightly declined but remained relatively stable, with values of $6.24 in 2023 and $6.20 in 2024. This suggests initial strong earnings growth that has plateaued in the most recent years.
- Price-to-Earnings Ratio (P/E)
- The P/E ratio demonstrated variability during the period. It started at 20 in 2019, increased sharply to 32.24 in 2020, before decreasing to the mid-20s range in 2021 and 2022. However, in the last two years, the ratio increased again, reaching a high of 35.95 in 2024. This pattern suggests fluctuating investor valuation multiples, with the most recent years reflecting higher market expectations relative to earnings.
Price to Operating Profit (P/OP)
Apple Inc., historical P/OP calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 15,115,823,000 | 15,552,752,000 | 15,908,118,000 | 16,406,397,000 | 17,001,802,000 | 17,773,060,000 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in millions) | 123,216) | 114,301) | 119,437) | 108,949) | 66,288) | 63,930) | |
| Operating profit per share2 | 8.15 | 7.35 | 7.51 | 6.64 | 3.90 | 3.60 | |
| Share price1, 3 | 222.91 | 176.65 | 155.74 | 149.80 | 108.86 | 62.19 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 27.35 | 24.04 | 20.74 | 22.56 | 27.92 | 17.29 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Arista Networks Inc. | 44.51 | 36.78 | 28.39 | 43.25 | 33.93 | — | |
| Cisco Systems Inc. | 16.10 | 15.32 | 13.35 | 19.26 | 12.73 | 14.46 | |
| Dell Technologies Inc. | 15.48 | 5.05 | 8.73 | 13.19 | 10.93 | — | |
| Super Micro Computer Inc. | 22.32 | 17.74 | 10.82 | 14.57 | 16.77 | 11.69 | |
| P/OP Ratio, Sector | |||||||
| Technology Hardware & Equipment | 26.28 | 22.47 | 19.66 | 21.99 | 24.94 | — | |
| P/OP Ratio, Industry | |||||||
| Information Technology | 34.96 | 29.91 | 22.75 | 26.04 | 26.91 | — | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 123,216,000,000 ÷ 15,115,823,000 = 8.15
3 Closing price as at the filing date of Apple Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 222.91 ÷ 8.15 = 27.35
5 Click competitor name to see calculations.
- Share Price
- The share price has shown a consistent upward trend over the six-year period. Starting at $62.19 in 2019, it increased substantially to $222.91 by 2024. Notable growth occurred particularly between 2019 and 2020, with the price nearly doubling. Subsequent years saw steady increases, with the largest absolute rise occurring from 2023 to 2024.
- Operating Profit Per Share
- Operating profit per share demonstrated overall growth, rising from $3.60 in 2019 to $8.15 in 2024. The most significant increase occurred between 2020 and 2021, with the figure nearly doubling. Although growth continued in the following years, it was at a slower pace, with a slight dip observed in 2023 before rising again in 2024.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio exhibited volatility throughout the period. Starting at 17.29 in 2019, it rose sharply to a peak of 27.92 in 2020 before gradually declining to 20.74 in 2022. Afterward, it increased again to 27.35 by 2024, indicating that the market price has occasionally grown at a faster rate than operating profit per share, reflecting varying investor expectations or market conditions.
- Insights
- The data suggests a favorable performance trend in both market valuation and operating profitability. The faster increase in share price relative to operating profit in certain years is reflected in the fluctuating P/OP ratio, which implies changing market sentiment and valuation multiples. The overall growth in operating profit per share underlines improving operational efficiency or profitability. However, the increase in valuation multiples in recent years might warrant attention to ensure that stock price appreciation aligns with fundamental performance.
Price to Sales (P/S)
Apple Inc., historical P/S calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 15,115,823,000 | 15,552,752,000 | 15,908,118,000 | 16,406,397,000 | 17,001,802,000 | 17,773,060,000 | |
| Selected Financial Data (US$) | |||||||
| Net sales (in millions) | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Sales per share2 | 25.87 | 24.64 | 24.79 | 22.30 | 16.15 | 14.64 | |
| Share price1, 3 | 222.91 | 176.65 | 155.74 | 149.80 | 108.86 | 62.19 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 8.62 | 7.17 | 6.28 | 6.72 | 6.74 | 4.25 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Arista Networks Inc. | 18.71 | 14.17 | 9.89 | 13.57 | 10.24 | — | |
| Cisco Systems Inc. | 3.64 | 4.04 | 3.62 | 4.96 | 3.52 | 3.96 | |
| Dell Technologies Inc. | 0.91 | 0.28 | 0.40 | 0.72 | 0.31 | — | |
| Super Micro Computer Inc. | 1.80 | 1.90 | 0.70 | 0.51 | 0.43 | 0.32 | |
| P/S Ratio, Sector | |||||||
| Technology Hardware & Equipment | 6.85 | 5.59 | 4.94 | 5.45 | 4.93 | — | |
| P/S Ratio, Industry | |||||||
| Information Technology | 9.31 | 7.33 | 6.01 | 6.96 | 6.11 | — | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 391,035,000,000 ÷ 15,115,823,000 = 25.87
3 Closing price as at the filing date of Apple Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 222.91 ÷ 25.87 = 8.62
5 Click competitor name to see calculations.
- Share Price
- The share price exhibits a consistent upward trend over the six-year period. Starting at $62.19 in 2019, it significantly increased to $108.86 in 2020, followed by steady growth reaching $149.80 in 2021 and $155.74 in 2022. The upward movement continued more robustly in the subsequent years, climbing to $176.65 in 2023 and attaining $222.91 by 2024. This pattern indicates strong market confidence and appreciation in the company's stock value.
- Sales Per Share
- Sales per share have also shown steady growth, beginning at $14.64 in 2019 and advancing moderately each year. The value rose to $16.15 in 2020, followed by a notable increase to $22.30 in 2021. Subsequent years saw incremental growth reaching $24.79 in 2022. However, there was a slight decline to $24.64 in 2023 before rising again to $25.87 in 2024. Overall, this suggests a generally positive sales performance per share with minor fluctuations.
- Price to Sales (P/S) Ratio
- The P/S ratio reveals a generally upward trajectory, indicating that the market's valuation relative to sales has increased over time. Starting at 4.25 in 2019, the ratio rose sharply to 6.74 in 2020 and remained relatively stable around 6.7 in 2021. There was a slight decline to 6.28 in 2022, followed by an increase to 7.17 in 2023, culminating in a substantial rise to 8.62 in 2024. This pattern reflects growing investor willingness to pay a premium over sales, likely due to expectations of future growth or profitability improvements.
Price to Book Value (P/BV)
Apple Inc., historical P/BV calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 15,115,823,000 | 15,552,752,000 | 15,908,118,000 | 16,406,397,000 | 17,001,802,000 | 17,773,060,000 | |
| Selected Financial Data (US$) | |||||||
| Shareholders’ equity (in millions) | 56,950) | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | |
| Book value per share (BVPS)2 | 3.77 | 4.00 | 3.19 | 3.85 | 3.84 | 5.09 | |
| Share price1, 3 | 222.91 | 176.65 | 155.74 | 149.80 | 108.86 | 62.19 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 59.17 | 44.21 | 48.89 | 38.96 | 28.33 | 12.21 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Arista Networks Inc. | 13.11 | 11.50 | 8.87 | 10.05 | 7.15 | — | |
| Cisco Systems Inc. | 4.31 | 5.19 | 4.69 | 5.99 | 4.57 | 6.12 | |
| Dell Technologies Inc. | — | — | — | 27.38 | — | — | |
| Super Micro Computer Inc. | 4.99 | 6.85 | 2.54 | 1.65 | 1.35 | 1.21 | |
| P/BV Ratio, Sector | |||||||
| Technology Hardware & Equipment | 32.96 | 27.57 | 28.94 | 25.15 | 19.59 | — | |
| P/BV Ratio, Industry | |||||||
| Information Technology | 13.25 | 11.50 | 10.49 | 12.51 | 11.10 | — | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 56,950,000,000 ÷ 15,115,823,000 = 3.77
3 Closing price as at the filing date of Apple Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 222.91 ÷ 3.77 = 59.17
5 Click competitor name to see calculations.
The financial data over the six-year period demonstrates significant trends in the share price, book value per share, and the price-to-book value ratio of the company.
- Share Price (US$)
- The share price exhibited a consistent upward trajectory from 2019 through 2024. Starting at $62.19 in 2019, it rose sharply to $108.86 in 2020, then continued to increase each subsequent year, reaching $222.91 in 2024. This reflects a notable appreciation in the company's market valuation over the period.
- Book Value per Share (BVPS) (US$)
- The book value per share showed more variability and a generally downward tendency from 2019 to 2022, declining from $5.09 in 2019 to a low of $3.19 in 2022. After this trough, there was a recovery observed in 2023 to $4.00, followed by a slight decrease to $3.77 in 2024. Overall, the BVPS remained below its initial 2019 level in the most recent years, indicating fluctuations in the company’s net asset value on a per-share basis.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio displayed a strong increasing trend throughout the period, beginning at 12.21 in 2019 and escalating substantially to 59.17 by 2024. This rise is mainly attributable to the faster increase in share price relative to the book value per share. The highest P/BV ratio was observed in 2024, suggesting the market values the company's shares much higher than their book value, which may reflect investor confidence or market expectations about future growth.
In summary, the data reveals a robust appreciation in market price well outpacing the relatively stable or declining book value per share, resulting in a marked increase in the price-to-book ratio. This trend suggests heightened market optimism or an expectation of future profitability that exceeds the historical net asset backing per share.