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
CSX Corp., current price multiples
| CSX Corp. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | Transportation | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $30.81 | ||||||||||
| No. shares of common stock outstanding | 2,033,054,922 | ||||||||||
| Growth rate (g) | 21.22% | ||||||||||
| Earnings per share (EPS) | $2.05 | ||||||||||
| Next year expected EPS | $2.48 | ||||||||||
| Operating profit per share | $2.96 | ||||||||||
| Sales per share | $7.31 | ||||||||||
| Book value per share (BVPS) | $6.20 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 15.04 | 12.58 | 19.80 | 20.37 | 8.26 | 14.78 | 35.69 | 50.15 | |||
| Price to next year expected earnings | 12.40 | 11.56 | 27.91 | 16.57 | 14.80 | 7.87 | 33.38 | 48.20 | |||
| Price-earnings-growth (PEG) | 0.71 | 1.43 | — | 0.89 | — | 0.17 | 5.16 | 12.37 | |||
| Price to operating profit (P/OP) | 10.40 | 9.80 | 69.71 | 14.15 | 5.10 | 10.09 | 16.75 | 27.63 | |||
| Price to sales (P/S) | 4.22 | 0.62 | 4.44 | 5.67 | 0.46 | 0.94 | 1.69 | 2.50 | |||
| Price to book value (P/BV) | 4.97 | 1.97 | 9.05 | 8.14 | 2.05 | 5.11 | 7.01 | 7.65 | |||
Based on: 10-K (reporting date: 2022-12-31).
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)
CSX Corp., historical price multiples
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The analysis of the financial ratios over the five-year period reveals several notable trends in the valuation metrics.
- Price to Earnings (P/E) Ratio
- The P/E ratio demonstrated a general increase from 16.79 in 2018 to a peak of 24.31 in 2020, indicating a rise in market valuation relative to earnings during this period. However, it subsequently declined in the following years, reaching 15.68 by the end of 2022, which suggests a contraction in investor expectations or earnings growth potential.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio followed a similar pattern to the P/E ratio, increasing from 11.41 in 2018 to 15.41 in 2020. This was followed by a decrease to 10.85 in 2022. This trend indicates that the market's valuation concerning operating profits became more optimistic up to 2020 but softened afterwards.
- Price to Sales (P/S) Ratio
- The P/S ratio increased steadily from 4.53 in 2018 and reached its highest point at 6.35 in 2020. It remained relatively stable in 2021 at 6.16 but then dropped to 4.4 by 2022. This reflects initial growth in market valuation relative to sales, followed by a retraction in the last year.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio showed a gradual increase from 4.42 in 2018 to 5.72 in 2021, with a slight decline to 5.18 in 2022. The ratio's stability and moderate fluctuations suggest consistent market valuation relative to the company's book value over the observed period.
Overall, the data shows an upward trend in valuation ratios leading up to 2020, potentially reflecting strong performance or favorable investor sentiment during this time. Post-2020, a reversal or correction trend is evident across most ratios, indicating more conservative market valuations or changes in company fundamentals. The P/BV ratio appeared more stable compared to other ratios, hinting at relatively consistent asset valuation by the market.
Price to Earnings (P/E)
CSX Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,062,605,434 | 2,193,389,444 | 2,287,515,174 | 2,321,476,695 | 2,446,891,098 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (in millions) | 4,166) | 3,781) | 2,765) | 3,331) | 3,309) | |
| Earnings per share (EPS)2 | 2.02 | 1.72 | 1.21 | 1.43 | 1.35 | |
| Share price1, 3 | 31.67 | 35.17 | 29.39 | 26.50 | 22.70 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 15.68 | 20.40 | 24.31 | 18.47 | 16.79 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| FedEx Corp. | 14.80 | 15.07 | 33.43 | 82.00 | — | |
| Uber Technologies Inc. | — | — | — | — | — | |
| Union Pacific Corp. | 17.97 | 23.67 | 25.57 | — | — | |
| United Airlines Holdings Inc. | 21.74 | — | — | — | — | |
| United Parcel Service Inc. | 13.27 | 14.11 | 104.33 | — | — | |
| P/E Ratio, Sector | ||||||
| Transportation | 30.10 | 22.48 | — | — | — | |
| P/E Ratio, Industry | ||||||
| Industrials | 36.06 | 35.59 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 4,166,000,000 ÷ 2,062,605,434 = 2.02
3 Closing price as at the filing date of CSX Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 31.67 ÷ 2.02 = 15.68
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a generally upward trend from 2018 through 2021, increasing from $22.70 to a peak of $35.17. However, in 2022 the share price experienced a decline to $31.67, retreating from the prior year's high.
- Earnings Per Share (EPS)
- EPS showed some volatility during the period. After a modest increase from $1.35 in 2018 to $1.43 in 2019, EPS decreased to $1.21 in 2020. This was followed by a significant recovery and growth to $1.72 in 2021 and further increase to $2.02 in 2022, representing the highest EPS in the five-year period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuated throughout the five years. It started at 16.79 in 2018, increased to 18.47 in 2019, and then rose sharply to 24.31 in 2020. In 2021, the ratio declined to 20.40 and continued to decrease in 2022 to 15.68, the lowest in the timeframe.
In summary, the share price saw growth until 2021 before declining in 2022. EPS demonstrated a dip in 2020 but recovered strongly thereafter, reaching its peak in the final year. The P/E ratio increased until 2020, then steadily decreased through 2022, potentially reflecting changes in market valuation relative to earnings. The decreasing P/E in the face of rising EPS and slightly lower share price in 2022 suggests that the stock became more attractively valued compared to prior years.
Price to Operating Profit (P/OP)
CSX Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,062,605,434 | 2,193,389,444 | 2,287,515,174 | 2,321,476,695 | 2,446,891,098 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 6,023) | 5,594) | 4,362) | 4,965) | 4,869) | |
| Operating profit per share2 | 2.92 | 2.55 | 1.91 | 2.14 | 1.99 | |
| Share price1, 3 | 31.67 | 35.17 | 29.39 | 26.50 | 22.70 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 10.85 | 13.79 | 15.41 | 12.39 | 11.41 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| FedEx Corp. | 9.07 | 13.46 | 17.79 | 9.92 | — | |
| Uber Technologies Inc. | — | — | — | — | — | |
| Union Pacific Corp. | 12.68 | 16.53 | 17.46 | — | — | |
| United Airlines Holdings Inc. | 6.86 | — | — | — | — | |
| United Parcel Service Inc. | 11.70 | 14.20 | 18.23 | — | — | |
| P/OP Ratio, Sector | ||||||
| Transportation | 14.13 | 21.54 | 65.24 | — | — | |
| P/OP Ratio, Industry | ||||||
| Industrials | 19.86 | 22.38 | 68.31 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,023,000,000 ÷ 2,062,605,434 = 2.92
3 Closing price as at the filing date of CSX Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 31.67 ÷ 2.92 = 10.85
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a general upward trend from 2018 through 2021, increasing from $22.70 to a peak of $35.17. However, in 2022, there was a decline to $31.67, which represents a moderate decrease but still remains above the levels observed in 2018 through 2020.
- Operating Profit Per Share
- Operating profit per share showed some fluctuations during the period. It rose from $1.99 in 2018 to $2.14 in 2019, followed by a dip to $1.91 in 2020. Subsequently, a marked improvement was observed, with the metric climbing to $2.55 in 2021 and further to $2.92 in 2022, reaching the highest value in the series.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed volatility over the observed years. It increased from 11.41 in 2018 to a high of 15.41 in 2020, indicating that the share price was relatively high compared to operating profit per share that year. The ratio then decreased to 13.79 in 2021 and further dropped to 10.85 in 2022, reflecting a better valuation relative to operating profits in the most recent year.
Price to Sales (P/S)
CSX Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,062,605,434 | 2,193,389,444 | 2,287,515,174 | 2,321,476,695 | 2,446,891,098 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | 14,853) | 12,522) | 10,583) | 11,937) | 12,250) | |
| Sales per share2 | 7.20 | 5.71 | 4.63 | 5.14 | 5.01 | |
| Share price1, 3 | 31.67 | 35.17 | 29.39 | 26.50 | 22.70 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 4.40 | 6.16 | 6.35 | 5.15 | 4.53 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| FedEx Corp. | 0.61 | 0.94 | 0.62 | 0.64 | — | |
| Uber Technologies Inc. | 2.16 | 3.90 | 9.07 | — | — | |
| Union Pacific Corp. | 5.05 | 7.08 | 7.00 | — | — | |
| United Airlines Holdings Inc. | 0.36 | 0.63 | 1.11 | — | — | |
| United Parcel Service Inc. | 1.53 | 1.87 | 1.66 | — | — | |
| P/S Ratio, Sector | ||||||
| Transportation | 1.42 | 2.03 | 2.19 | — | — | |
| P/S Ratio, Industry | ||||||
| Industrials | 1.80 | 2.07 | 2.14 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 14,853,000,000 ÷ 2,062,605,434 = 7.20
3 Closing price as at the filing date of CSX Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 31.67 ÷ 7.20 = 4.40
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trend from 2018 to 2021, rising from $22.70 to a peak of $35.17. However, this was followed by a decline in 2022 to $31.67, indicating some volatility in the most recent period.
- Sales Per Share Development
- Sales per share remained relatively stable between 2018 and 2019 before experiencing a decline in 2020, dropping from $5.14 to $4.63. Subsequently, there was a significant recovery and growth, with sales per share increasing to $5.71 in 2021 and further to $7.20 in 2022, reaching the highest value in the examined period.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio showed an increasing trend from 2018 to 2020, peaking at 6.35 in 2020. This suggests that the market price per share grew disproportionately relative to sales per share during that period. The ratio slightly declined in 2021 to 6.16 and then more notably decreased in 2022 to 4.4, which may indicate that the share price growth slowed in comparison to the strong increase in sales per share in 2022.
- Overall Insights
- The data indicates that while the share price generally increased over the analyzed years, its decline in 2022 contrasts with robust growth in sales per share during the same year. The reduction in the P/S ratio in 2022 suggests a market adjustment where the share price did not keep pace with sales growth, potentially reflecting changes in market sentiment or valuation expectations. The patterns imply improved operational performance as indicated by rising sales per share but a cautious or moderating market valuation in the latest period.
Price to Book Value (P/BV)
CSX Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,062,605,434 | 2,193,389,444 | 2,287,515,174 | 2,321,476,695 | 2,446,891,098 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity, attributable to CSX (in millions) | 12,615) | 13,490) | 13,101) | 11,848) | 12,563) | |
| Book value per share (BVPS)2 | 6.12 | 6.15 | 5.73 | 5.10 | 5.13 | |
| Share price1, 3 | 31.67 | 35.17 | 29.39 | 26.50 | 22.70 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 5.18 | 5.72 | 5.13 | 5.19 | 4.42 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| FedEx Corp. | 2.27 | 3.26 | 2.35 | 2.49 | — | |
| Uber Technologies Inc. | 9.36 | 4.71 | 8.24 | — | — | |
| Union Pacific Corp. | 10.34 | 10.90 | 8.07 | — | — | |
| United Airlines Holdings Inc. | 2.32 | 3.06 | 2.85 | — | — | |
| United Parcel Service Inc. | 7.75 | 12.76 | 213.26 | — | — | |
| P/BV Ratio, Sector | ||||||
| Transportation | 5.91 | 6.92 | 8.09 | — | — | |
| P/BV Ratio, Industry | ||||||
| Industrials | 5.50 | 5.44 | 5.89 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Shareholders’ equity, attributable to CSX ÷ No. shares of common stock outstanding
= 12,615,000,000 ÷ 2,062,605,434 = 6.12
3 Closing price as at the filing date of CSX Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 31.67 ÷ 6.12 = 5.18
5 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending December 31, 2022.
- Share Price
- The share price exhibited a consistent upward trajectory from 2018 through 2021, rising from $22.70 to a peak of $35.17. However, in 2022, the share price declined to $31.67, reflecting a slight contraction following several years of growth.
- Book Value Per Share (BVPS)
- BVPS demonstrated marginal fluctuations over the five years. Starting at $5.13 in 2018, it slightly decreased to $5.10 in 2019, then increased steadily to $6.15 by 2021, before a minor decrease to $6.12 in 2022. Overall, BVPS showed moderate growth, suggesting gradual accumulation of net assets per share.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio, derived from the share price relative to BVPS, reflected some volatility but generally maintained elevated levels. It rose from 4.42 in 2018 to a peak of 5.72 in 2021, followed by a slight decline to 5.18 in 2022. This indicates that the market consistently priced the shares at a multiple above book value, with the highest investor optimism observed in 2021.
In summary, the data indicates that the share price growth outpaced the growth in book value per share, resulting in generally high P/BV ratios through the period. The slowdown in share price in 2022, coupled with a marginal dip in book value per share, suggests a potential reevaluation of market expectations or external factors influencing valuation. Despite this, the sustained high P/BV ratio points to continued investor confidence in the company's future prospects relative to its net asset base.