Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
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- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Historical Valuation Ratios (Summary)
Applied Materials Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2026-01-25), 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
The valuation ratios exhibit varied trends over the observed period. Generally, the ratios demonstrate volatility, particularly in the latter half of the timeframe, suggesting shifts in investor sentiment or underlying business performance. An initial period of relative stability is followed by more pronounced fluctuations.
- Price to Earnings (P/E)
- The Price to Earnings ratio decreased from 27.11 to a low of 13.55 between January 2021 and October 2022, indicating a declining valuation relative to earnings. Subsequently, the ratio increased, peaking at 29.37 in October 2025 before decreasing again to 29.37. This suggests periods of increased and decreased investor confidence in future earnings potential. The most recent value, 29.37, represents a significant increase from the lows observed in 2022.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio generally decreased from 22.70 in January 2021 to 11.35 in October 2022. This decrease indicates a lower valuation relative to operating profitability. The ratio then experienced an upward trend, reaching 24.80 in October 2025. This mirrors the trend observed in the P/E ratio, suggesting a correlation between earnings-based and operating profit-based valuations.
- Price to Sales (P/S)
- The Price to Sales ratio initially increased from 5.74 to 6.81 between January 2021 and April 2023, indicating a higher valuation relative to revenue. However, a more substantial increase is observed from 4.45 in April 2025 to 10.40 in July 2025, representing a significant shift in valuation relative to sales. This suggests a potentially increased premium placed on revenue generation during that period. The ratio demonstrates the most substantial increase of all ratios analyzed.
- Price to Book Value (P/BV)
- The Price to Book Value ratio fluctuated between 9.11 and 10.60 from January 2021 to October 2021, then decreased to a low of 6.53 in April 2025. A subsequent increase is observed, reaching 13.51 in January 2026. This indicates changes in how the market values the company’s net assets. The recent increase suggests a renewed emphasis on asset valuation.
Overall, the observed trends suggest a period of valuation compression followed by a period of expansion, particularly noticeable in the latter half of the timeframe. The Price to Sales ratio experienced the most dramatic change, while the Price to Earnings and Price to Operating Profit ratios exhibited similar patterns. The Price to Book Value ratio showed a more moderate fluctuation. These shifts likely reflect evolving market conditions and investor perceptions of the company’s future prospects.
Price to Earnings (P/E)
Applied Materials Inc., historical P/E calculation (quarterly data)
| Jan 25, 2026 | Oct 26, 2025 | Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net income (in millions) | ||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-01-25), 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
EPS
= (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Applied Materials Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price-to-earnings (P/E) ratio exhibited considerable fluctuation throughout the observed period, spanning from January 31, 2021, to October 26, 2025. Initially, the ratio demonstrated a relatively stable range, followed by a distinct downward trend and subsequent volatility before increasing significantly towards the end of the period.
- Initial Phase (Jan 31, 2021 – Oct 31, 2021)
- The P/E ratio began at 27.11 and fluctuated between approximately 22 and 28 over the first ten months. This suggests a period of relatively consistent investor valuation based on earnings. A slight decrease is observed from May 2, 2021 (28.42) to October 31, 2021 (22.05).
- Downward Trend & Stabilization (Jan 30, 2022 – Jul 31, 2022)
- A pronounced downward trend commenced in early 2022, with the P/E ratio declining from 17.99 to a low of 13.59 by July 31, 2022. This decrease coincided with a period of relatively stable earnings per share, indicating a potential shift in investor sentiment or market conditions leading to a lower valuation relative to earnings. The ratio then stabilized around 13.5 to 14 for the next quarter.
- Moderate Fluctuation (Oct 30, 2022 – Jul 30, 2023)
- From October 2022 through July 2023, the P/E ratio experienced moderate fluctuations, ranging between 14.79 and 19.63. This period suggests a degree of uncertainty or mixed signals influencing investor valuation. Earnings per share remained relatively consistent during this timeframe.
- Significant Increase (Oct 29, 2023 – Oct 26, 2025)
- A substantial increase in the P/E ratio is evident from October 2023 onwards. The ratio rose from 19.20 to 29.37, and then dramatically to 37.44 by the end of the observation period. This increase occurred alongside a rise in both share price and earnings per share, but the P/E ratio increase outpaced the earnings growth, suggesting increased investor optimism or a potential market bubble. The most significant jump occurred between January 25, 2026 and October 26, 2025.
Overall, the P/E ratio demonstrates a transition from initial stability to a period of decline, followed by a significant surge in valuation towards the end of the analyzed timeframe. These changes likely reflect evolving market perceptions, investor confidence, and the company’s financial performance.
Price to Operating Profit (P/OP)
Applied Materials Inc., historical P/OP calculation (quarterly data)
| Jan 25, 2026 | Oct 26, 2025 | Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Income from operations (in millions) | ||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-01-25), 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
Operating profit per share
= (Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025
+ Income from operationsQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Applied Materials Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decreasing trend from January 2021 to July 2022, followed by a period of relative stability and then a significant increase towards the end of the observation window.
- Initial Decreasing Trend (Jan 31, 2021 – Jul 31, 2022)
- The P/OP ratio began at 22.70 in January 2021 and generally declined to 11.57 by July 2022. This suggests that the market valuation relative to operating profit decreased over this period. This decline could be attributed to various factors, including changing investor sentiment, adjustments in growth expectations, or improvements in operational efficiency leading to higher operating profits without a proportional increase in share price.
- Period of Stability (Oct 30, 2022 – Apr 28, 2024)
- From October 2022 through April 2024, the P/OP ratio remained relatively stable, fluctuating between approximately 14.65 and 23.58. This indicates a period where the market valuation and operating profit growth were more aligned. The ratio experienced some volatility, but remained within a defined range.
- Significant Increase (Jul 30, 2023 – Jan 25, 2026)
- Starting in July 2023, the P/OP ratio began a substantial increase, culminating in a value of 36.94 by January 2026. This represents a significant premium placed on each dollar of operating profit. This surge could be indicative of increased investor optimism, expectations of future growth, or a broader market revaluation. The ratio increased from 17.58 in July 2023 to 36.94 in January 2026.
The most recent observation in April 2025 shows a slight decrease to 15.46, followed by a further decrease to 14.77 in July 2025, and then a substantial increase to 24.80 in October 2025. This recent volatility suggests a dynamic market response to company performance or external factors. The final value of 36.94 in January 2026 represents the highest P/OP ratio observed throughout the entire period.
Overall, the P/OP ratio demonstrates a non-linear pattern, characterized by an initial decline, a period of consolidation, and a subsequent, substantial increase. These fluctuations warrant further investigation into the underlying drivers of both the share price and operating profit.
Price to Sales (P/S)
Applied Materials Inc., historical P/S calculation (quarterly data)
| Jan 25, 2026 | Oct 26, 2025 | Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Revenue (in millions) | ||||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-01-25), 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
Sales per share
= (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Applied Materials Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price-to-sales ratio exhibited considerable fluctuation throughout the observed period. Initially, the ratio increased from 5.74 to 6.35 between January 31, 2021, and May 2, 2021, before declining to 5.53 by August 1, 2021. A subsequent increase to 5.63 was noted by October 31, 2021, followed by a more pronounced decrease to 4.88 by January 30, 2022.
A significant downward trend was then observed, with the ratio falling to a low of 3.43 by October 30, 2022. This decline suggests a decreasing valuation relative to sales during this period. The ratio experienced a modest recovery, reaching 3.63 by January 29, 2023, but continued to fluctuate, peaking at 4.49 in May 2023 before rising to 5.08 in July 2023.
- Recent Trends (2023-2025)
- From October 2023 through January 2024, the ratio increased substantially, reaching a high of 6.36. This increase coincided with a significant rise in the share price. The ratio remained elevated, peaking at 6.81 in April 2024, before beginning a decline to 5.07 by October 2024. A further increase was observed through July 2025, culminating in a ratio of 7.25. The ratio then experienced a dramatic increase, reaching 10.40 by January 2026.
The period between January 31, 2021, and October 27, 2024, demonstrates a cyclical pattern, with periods of increase followed by periods of decrease. However, the final observations from October 2024 through January 2026 indicate a strong upward trend in the price-to-sales ratio, suggesting increasing investor confidence or potentially overvaluation relative to sales.
- Sales per Share
- Sales per share generally increased throughout the period, moving from 19.84 in January 2021 to 35.55 in January 2026. This consistent growth in sales per share provides context for the fluctuations in the price-to-sales ratio. The increasing sales per share, coupled with the fluctuating share price, explains the observed changes in the P/S ratio.
The most substantial changes in the price-to-sales ratio occurred in the latter half of the observed period, particularly between October 2023 and January 2026. This period warrants further investigation to determine the underlying drivers of the valuation shift.
Price to Book Value (P/BV)
Applied Materials Inc., historical P/BV calculation (quarterly data)
| Jan 25, 2026 | Oct 26, 2025 | Jul 27, 2025 | Apr 27, 2025 | Jan 26, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Stockholders’ equity (in millions) | ||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-01-25), 10-K (reporting date: 2025-10-26), 10-Q (reporting date: 2025-07-27), 10-Q (reporting date: 2025-04-27), 10-Q (reporting date: 2025-01-26), 10-K (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-Q (reporting date: 2024-01-28), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Applied Materials Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price-to-book value (P/BV) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio exhibited a relatively stable range between 9.11 and 10.60 from January 2021 through October 2021. A subsequent decline commenced in early 2022, reaching a low of 7.25 by October 2022. Following this, the ratio experienced a period of moderate recovery, peaking at 9.67 in January 2023, before stabilizing in the 7.68 to 8.23 range through October 2023. A significant upward trend began in January 2024, accelerating through July 2025, culminating in a high of 13.51 in January 2026.
- Initial Stability (Jan 2021 - Oct 2021)
- The P/BV ratio remained within a narrow band, suggesting a consistent market valuation relative to book value during this period. Values hovered around 10, indicating investors were willing to pay approximately ten times the company’s book value for each share of stock.
- Decline and Stabilization (Nov 2021 - Oct 2023)
- A noticeable decrease in the P/BV ratio occurred starting in late 2021, continuing through much of 2022. This suggests a diminishing investor confidence or a reassessment of the company’s value relative to its net asset value. The ratio stabilized in the 7 to 8 range during the latter part of the observed period, indicating a potential floor to the valuation.
- Significant Increase (Jan 2024 - Jan 2026)
- The P/BV ratio experienced a substantial increase beginning in January 2024. This indicates a growing investor optimism and a willingness to pay a significantly higher premium for the company’s book value. The ratio more than doubled over the period, reaching 13.51, suggesting a substantial shift in market perception.
- Book Value Per Share Trend
- Book value per share generally increased throughout the period, from $12.50 in January 2021 to $27.36 in January 2026. This upward trend in book value likely contributed to the overall increase in the P/BV ratio, particularly in the later stages of the observation period.
- Share Price Trend
- The share price demonstrated a similar pattern to the P/BV ratio, with initial stability, a decline in 2022, and a significant increase beginning in 2024. The substantial increase in share price, coupled with the rising book value, drove the observed increase in the P/BV ratio.