Microsoft Excel LibreOffice Calc

Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

Broadcom Inc., current price multiples

Microsoft Excel LibreOffice Calc
Broadcom Inc. Apple Inc. Applied Materials Inc. Cisco Systems Inc. HP Inc. Intel Corp. NVIDIA Corp. Qualcomm Inc. Texas Instruments Inc. Technology Hardware & Equipment Technology
Selected Financial Data
Current share price (P) $ 239.25
No. shares of common stock outstanding 413,446,755
Growth rate (g) 5.45%
 
Earnings per share (EPS) $ 4.09
Next year expected EPS $ 4.32
Operating profit per share $ 5.76
Sales per share $ 42.66
Book value per share (BVPS) $ 49.06
Ratios (Price Multiples)
Price to earnings (P/E) 58.46 13.52 9.78 1,915.28 14.36 22.44 30.40 24.47 19.90 27.50
Price to next year expected earnings 55.44 10.43 10.04 1,764.64 12.25 20.51 26.72 21.37 17.12 23.83
Price-earnings-growth (PEG) 10.72 0.46 224.37 0.83 2.38 2.20 1.69 1.23 1.78
Price to operating profit (P/OP) 41.51 11.35 8.68 17.12 10.31 12.01 28.86 93.51 14.81 14.79 19.89
Price to sales (P/S) 5.61 3.03 2.31 4.27 0.70 3.43 9.54 3.05 6.02 3.53 4.89
Price to book value (P/BV) 4.88 7.51 3.59 4.88 3.12 12.40 74.77 8.72 4.83 5.65

Based on: 10-K (filing date: 2017-12-21).

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Broadcom Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
Price to earnings (P/E) 63.27 28.48 98.34 23.29 13.96
Price to operating profit (P/OP) 44.93 23.80 59.05 23.29 13.51
Price to sales (P/S) 6.07 5.48 5.69 6.06 5.10 3.33
Price to book value (P/BV) 5.28 3.84 8.24 7.97 4.45 3.25

Based on: 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29), 10-K (filing date: 2013-12-20), 10-K (filing date: 2012-12-17).

Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Broadcom Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Broadcom Inc.'s P/OP ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Broadcom Inc.'s P/S ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Broadcom Inc.'s P/BV ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Price to Earnings (P/E)

Broadcom Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
No. shares of common stock outstanding1 409,362,475 398,980,392 276,489,575 255,331,527 248,909,416 245,742,488
Selected Financial Data (USD $)
Net income (loss) attributable to ordinary shares (in millions) 1,692  (1,739) 1,364  263  552  563 
Earnings per share (EPS)3 4.13 -4.36 4.93 1.03 2.22 2.29
Share price1, 2 261.53 181.94 140.48 101.29 51.65 31.99
Ratio
P/E ratio4 63.27 28.48 98.34 23.29 13.96
Benchmarks
P/E Ratio, Competitors
Apple Inc. 18.32 13.49 12.45 15.60 12.75
Applied Materials Inc. 16.16 20.68 15.88 27.87 78.13 118.67
Cisco Systems Inc. 16.37 14.69 14.82 16.14 12.98
HP Inc. 13.51 10.60 4.82 14.57 10.48
Intel Corp. 22.15 16.72 11.85 13.90 12.80
NVIDIA Corp. 36.34 28.97 19.77 22.35 13.95
Qualcomm Inc. 31.96 17.37 17.18 16.11 17.19
Texas Instruments Inc. 27.77 21.45 17.66 21.89 22.29
P/E Ratio, Sector
Technology Hardware & Equipment 20.40 16.12 13.02 16.11 13.66
P/E Ratio, Industry
Technology 27.19 20.90 18.72 18.58 16.17

Based on: 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29), 10-K (filing date: 2013-12-20), 10-K (filing date: 2012-12-17).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.'s Annual Report.

2017 Calculations

3 EPS = Net income (loss) attributable to ordinary shares ÷ No. shares of common stock outstanding
= 1,692,000,000 ÷ 409,362,475 = 4.13

4 P/E ratio = Share price ÷ EPS
= 261.53 ÷ 4.13 = 63.27

Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Broadcom Inc.'s P/E ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Price to Operating Profit (P/OP)

Broadcom Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
No. shares of common stock outstanding1 409,362,475 398,980,392 276,489,575 255,331,527 248,909,416 245,742,488
Selected Financial Data (USD $)
Operating income (loss) (in millions) 2,383  (409) 1,632  438  552  582 
Operating profit per share3 5.82 -1.03 5.90 1.72 2.22 2.37
Share price1, 2 261.53 181.94 140.48 101.29 51.65 31.99
Ratio
P/OP ratio4 44.93 23.80 59.05 23.29 13.51
Benchmarks
P/OP Ratio, Competitors
Apple Inc. 14.44 10.27 9.34 11.74 9.64
Applied Materials Inc. 14.35 16.54 12.92 19.66 46.30 31.47
Cisco Systems Inc. 13.14 12.46 12.36 13.57 11.57
HP Inc. 9.70 7.45 4.02 10.16 7.51
Intel Corp. 11.86 13.40 9.66 10.60 10.02
NVIDIA Corp. 31.30 23.81 16.42 19.81 12.11
Qualcomm Inc. 30.15 15.26 15.68 17.00 16.30
Texas Instruments Inc. 16.81 16.07 12.34 15.64 17.02
P/OP Ratio, Sector
Technology Hardware & Equipment 15.17 12.39 10.14 12.56 10.79
P/OP Ratio, Industry
Technology 19.67 16.53 14.33 14.28 12.96

Based on: 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29), 10-K (filing date: 2013-12-20), 10-K (filing date: 2012-12-17).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.'s Annual Report.

2017 Calculations

3 Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 2,383,000,000 ÷ 409,362,475 = 5.82

4 P/OP ratio = Share price ÷ Operating profit per share
= 261.53 ÷ 5.82 = 44.93

Ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Broadcom Inc.'s P/OP ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Price to Sales (P/S)

Broadcom Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
No. shares of common stock outstanding1 409,362,475 398,980,392 276,489,575 255,331,527 248,909,416 245,742,488
Selected Financial Data (USD $)
Net revenue (in millions) 17,636  13,240  6,824  4,269  2,520  2,364 
Sales per share3 43.08 33.18 24.68 16.72 10.12 9.62
Share price1, 2 261.53 181.94 140.48 101.29 51.65 31.99
Ratio
P/S ratio4 6.07 5.48 5.69 6.06 5.10 3.33
Benchmarks
P/S Ratio, Competitors
Apple Inc. 3.86 2.86 2.85 3.37 2.76
Applied Materials Inc. 3.82 3.29 2.26 3.29 2.66 1.48
Cisco Systems Inc. 3.28 3.20 2.71 2.69 2.66
HP Inc. 0.66 0.55 0.21 0.66 0.48 0.23
Intel Corp. 3.39 2.90 2.44 2.91 2.34
NVIDIA Corp. 8.76 3.55 2.66 2.38 1.83
Qualcomm Inc. 3.54 4.21 3.58 4.85 4.74
Texas Instruments Inc. 6.83 5.77 4.06 4.73 3.95
P/S Ratio, Sector
Technology Hardware & Equipment 3.62 2.91 2.34 2.72 2.26
P/S Ratio, Industry
Technology 4.83 4.00 3.32 3.41 3.03

Based on: 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29), 10-K (filing date: 2013-12-20), 10-K (filing date: 2012-12-17).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.'s Annual Report.

2017 Calculations

3 Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 17,636,000,000 ÷ 409,362,475 = 43.08

4 P/S ratio = Share price ÷ Sales per share
= 261.53 ÷ 43.08 = 6.07

Ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Broadcom Inc.'s P/S ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

Price to Book Value (P/BV)

Broadcom Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014 Nov 3, 2013 Oct 28, 2012
No. shares of common stock outstanding1 409,362,475 398,980,392 276,489,575 255,331,527 248,909,416 245,742,488
Selected Financial Data (USD $)
Total Broadcom Inc. stockholders’ equity (in millions) 20,285  18,892  4,714  3,243  2,886  2,419 
Book value per share (BVPS)3 49.55 47.35 17.05 12.70 11.59 9.84
Share price1, 2 261.53 181.94 140.48 101.29 51.65 31.99
Ratio
P/BV ratio4 5.28 3.84 8.24 7.97 4.45 3.25
Benchmarks
P/BV Ratio, Competitors
Apple Inc. 6.61 4.81 5.57 5.53 3.82
Applied Materials Inc. 5.94 4.93 2.87 3.80 2.82 1.79
Cisco Systems Inc. 2.38 2.48 2.23 2.24 2.19
HP Inc. 0.79 2.73 1.96 1.22
Intel Corp. 3.08 2.60 2.21 2.91 2.11
NVIDIA Corp. 10.51 3.98 2.82 2.21 1.63
Qualcomm Inc. 2.56 3.12 2.88 3.28 3.26
Texas Instruments Inc. 9.89 7.36 5.30 5.94 4.46
P/BV Ratio, Sector
Technology Hardware & Equipment 4.95 3.90 3.59 3.91 2.99
P/BV Ratio, Industry
Technology 5.59 4.57 4.22 4.20 3.74

Based on: 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29), 10-K (filing date: 2013-12-20), 10-K (filing date: 2012-12-17).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Broadcom Inc.'s Annual Report.

2017 Calculations

3 BVPS = Total Broadcom Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 20,285,000,000 ÷ 409,362,475 = 49.55

4 P/BV ratio = Share price ÷ BVPS
= 261.53 ÷ 49.55 = 5.28

Ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Broadcom Inc.'s P/BV ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.