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
CrowdStrike Holdings Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | Fair Isaac Corp. | 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) | $514.10 | |||||||||||||||||||
No. shares of common stock outstanding | 249,248,174 | |||||||||||||||||||
Earnings per share (EPS) | $-0.08 | |||||||||||||||||||
Operating profit per share | $-0.48 | |||||||||||||||||||
Sales per share | $15.86 | |||||||||||||||||||
Book value per share (BVPS) | $13.16 | |||||||||||||||||||
Valuation Ratios (Price Multiples) | ||||||||||||||||||||
Price to sales (P/S) | 32.41 | 2.93 | 7.48 | 19.23 | 26.30 | 4.32 | 13.37 | 15.13 | 11.61 | 110.65 | 16.76 | 6.87 | 19.69 | 13.90 | 7.64 | 12.07 | 11.74 | |||
Price to book value (P/BV) | 39.07 | 6.71 | 11.41 | 19.09 | — | 9.94 | 11.81 | 13.81 | 32.59 | 63.37 | 26.03 | 4.25 | 22.51 | 9.47 | 7.15 | 14.01 | 16.71 |
Based on: 10-K (reporting date: 2025-01-31).
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)
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
The financial ratios over the reported periods exhibit significant fluctuations, reflecting varying market perceptions and company performance dynamics.
- Price to Earnings (P/E) Ratio
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The P/E ratio data is largely unavailable except for the value of 892.67 recorded in the latest reported period. This extremely high ratio may indicate a market expectation of substantial future earnings growth or possibly an overvaluation relative to current earnings. The absence of historical P/E figures limits the ability to assess the trend or compare valuation changes over time.
- Price to Operating Profit (P/OP) Ratio
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There is no data provided for the P/OP ratio across all periods, precluding any trend analysis or insights related to operating profitability valuation.
- Price to Sales (P/S) Ratio
-
The P/S ratio shows volatility over the analyzed periods. It started at 22.79 in early 2020, nearly doubled to 48.7 by early 2021, suggesting rising investor optimism or a premium on revenue growth. The ratio then declined sharply to 30.15 in 2022 and further to 12.81 in early 2023, indicating a possible market reassessment of revenue quality or growth prospects. A rebound to 26.1 in 2024 was followed by a moderate decrease to 19.36 in 2025. Overall, the trend reflects fluctuating market sentiment towards the company’s sales performance and growth expectations.
- Price to Book Value (P/BV) Ratio
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The P/BV ratio experienced a pattern similar to the P/S ratio, evidencing considerable variation. Starting at 14.78 in 2020, it escalated sharply to 48.91 in 2021, implying that the market valued the company at a substantial premium to its book value. The ratio then decreased to 42.67 in 2022 and fell significantly to 19.61 by 2023, reflecting reduced market optimism or a potential improvement in book value relative to price. Subsequent increases to 34.61 and then a fall to 23.34 in 2025 suggest ongoing volatility in market valuations relative to net asset value.
In summary, the financial valuation ratios of the company demonstrate considerable variability over the analyzed years, with peaks around 2021 followed by declines and partial recoveries. This volatility may be indicative of shifting market expectations related to growth prospects, profitability, and asset valuations. The extremely high P/E ratio in the most recent period stands out as a potential signal of speculative investor sentiment or anticipated future earnings acceleration, though the lack of historical P/E data limits deeper trend analysis.
Price to Earnings (P/E)
Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
---|---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 247,873,415 | 241,868,658 | 235,863,985 | 230,767,860 | 223,876,229 | 213,213,015 | |
Selected Financial Data (US$) | |||||||
Net income (loss) attributable to CrowdStrike (in thousands) | (19,271) | 89,327) | (183,245) | (234,802) | (92,629) | (141,779) | |
Earnings per share (EPS)2 | -0.08 | 0.37 | -0.78 | -1.02 | -0.41 | -0.66 | |
Share price1, 3 | 308.86 | 329.68 | 121.68 | 189.66 | 190.21 | 51.45 | |
Valuation Ratio | |||||||
P/E ratio4 | — | 892.67 | — | — | — | — | |
Benchmarks | |||||||
P/E Ratio, Competitors5 | |||||||
Accenture PLC | — | 31.07 | 27.81 | 22.93 | 36.58 | 28.32 | |
Adobe Inc. | — | 31.98 | 49.64 | 33.15 | 48.90 | 41.69 | |
Cadence Design Systems Inc. | — | 67.09 | 78.64 | 59.70 | 53.88 | 62.89 | |
Fair Isaac Corp. | — | 99.26 | 54.13 | 29.67 | 27.12 | 56.83 | |
International Business Machines Corp. | — | 39.68 | 22.50 | 71.56 | 19.40 | 19.30 | |
Intuit Inc. | — | 58.94 | 64.61 | 57.31 | 75.17 | 49.52 | |
Microsoft Corp. | — | 35.67 | 33.96 | 28.34 | 35.14 | 35.04 | |
Oracle Corp. | 47.60 | 37.63 | 38.96 | 26.85 | 15.84 | 16.69 | |
Palantir Technologies Inc. | — | 632.38 | 246.77 | — | — | — | |
Palo Alto Networks Inc. | — | 42.42 | 170.35 | — | — | — | |
Salesforce Inc. | 45.28 | 71.24 | 879.57 | 135.68 | 48.20 | 1,204.70 | |
ServiceNow Inc. | — | 146.40 | 90.80 | 284.28 | 487.70 | 978.47 | |
Synopsys Inc. | — | 33.69 | 70.08 | 51.76 | 73.37 | 55.92 | |
Workday Inc. | 122.85 | 50.53 | — | 1,957.29 | — | — | |
P/E Ratio, Sector | |||||||
Software & Services | — | 41.74 | 39.95 | 34.37 | 37.37 | 38.32 | |
P/E Ratio, Industry | |||||||
Information Technology | — | 45.10 | 35.92 | 26.81 | 29.49 | 31.10 |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income (loss) attributable to CrowdStrike ÷ No. shares of common stock outstanding
= -19,271,000 ÷ 247,873,415 = -0.08
3 Closing price as at the filing date of CrowdStrike Holdings Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 308.86 ÷ -0.08 = —
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced significant fluctuations over the analyzed period. Starting at $51.45, it surged sharply to a peak of $190.21 in early 2021. This peak was maintained with minimal decline to $189.66 in early 2022, followed by a steep decline to $121.68 in early 2023. Subsequently, the share price rebounded strongly to $329.68 in early 2024 before experiencing a slight decline to $308.86 in early 2025. The overall pattern reflects high volatility with notable peaks in 2021 and 2024.
- Earnings per Share (EPS) Trend
- The EPS figures indicate persistent negative earnings from 2020 through 2023, with values of -$0.66, -$0.41, -$1.02, and -$0.78, respectively. A noteworthy improvement is observed in 2024 when EPS turned positive to $0.37, indicating a potential return to profitability. However, in 2025, EPS reverted to a slightly negative value of -$0.08, suggesting mixed earnings performance in the most recent period.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio is reported only for January 2024, at an exceptionally high level of 892.67. This unusually elevated value corresponds to the positive yet modest EPS of $0.37 alongside a very high share price of $329.68, reflecting investors’ expectations and possibly indicating overvaluation or anticipated growth. The absence of P/E data for other years limits a comprehensive valuation trend analysis.
Price to Operating Profit (P/OP)
Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
---|---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 247,873,415 | 241,868,658 | 235,863,985 | 230,767,860 | 223,876,229 | 213,213,015 | |
Selected Financial Data (US$) | |||||||
Loss from operations (in thousands) | (120,430) | (1,995) | (190,112) | (142,548) | (92,529) | (146,065) | |
Operating profit per share2 | -0.49 | -0.01 | -0.81 | -0.62 | -0.41 | -0.69 | |
Share price1, 3 | 308.86 | 329.68 | 121.68 | 189.66 | 190.21 | 51.45 | |
Valuation Ratio | |||||||
P/OP ratio4 | — | — | — | — | — | — | |
Benchmarks | |||||||
P/OP Ratio, Competitors5 | |||||||
Accenture PLC | — | 23.52 | 21.69 | 16.83 | 28.35 | 22.21 | |
Adobe Inc. | — | 26.38 | 40.52 | 25.85 | 40.64 | 51.75 | |
Cadence Design Systems Inc. | — | 52.42 | 65.43 | 47.21 | 48.13 | 57.54 | |
Fair Isaac Corp. | — | 69.38 | 36.15 | 20.43 | 21.03 | 45.39 | |
International Business Machines Corp. | — | 25.48 | 17.99 | 14.35 | 16.23 | 15.90 | |
Intuit Inc. | — | 48.11 | 49.04 | 46.05 | 62.00 | 41.56 | |
Microsoft Corp. | — | 28.73 | 27.76 | 24.72 | 30.79 | 29.30 | |
Oracle Corp. | 33.50 | 25.65 | 25.30 | 16.51 | 14.31 | 12.17 | |
Palantir Technologies Inc. | — | 941.61 | 431.61 | — | — | — | |
Palo Alto Networks Inc. | — | 159.88 | 193.40 | — | — | — | |
Salesforce Inc. | 38.94 | 58.80 | 177.62 | 357.52 | 431.39 | 511.08 | |
ServiceNow Inc. | — | 152.95 | 206.26 | 260.26 | 436.46 | 583.07 | |
Synopsys Inc. | — | 56.25 | 67.90 | 43.85 | 75.64 | 59.90 | |
Workday Inc. | 155.71 | 381.31 | — | — | — | — | |
P/OP Ratio, Sector | |||||||
Software & Services | — | 33.96 | 31.98 | 27.23 | 33.52 | 31.79 | |
P/OP Ratio, Industry | |||||||
Information Technology | — | 34.96 | 29.91 | 22.75 | 26.04 | 26.91 |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Loss from operations ÷ No. shares of common stock outstanding
= -120,430,000 ÷ 247,873,415 = -0.49
3 Closing price as at the filing date of CrowdStrike Holdings Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 308.86 ÷ -0.49 = —
5 Click competitor name to see calculations.
The financial data presents variations in share price and operating profit per share over six fiscal years ending January 31 from 2020 to 2025. The dataset includes a projected period up to 2025, allowing for an analysis of both historical trends and future expectations.
- Share Price
- The share price exhibits notable volatility throughout the periods analyzed. Starting at $51.45 in 2020, the share price experienced a significant increase to approximately $190 in 2021 and maintained near the same level in 2022. However, in 2023, the price declined sharply to $121.68, followed by a substantial rebound to $329.68 in 2024. The projection for 2025 indicates a slight decrease to $308.86. Overall, the share price shows an upward trajectory with periods of marked fluctuation, particularly between 2021 and 2024.
- Operating Profit per Share (OPPS)
- Operating profit per share remains negative across all reported periods, indicating the company is operating at a loss on a per-share basis during these years. The losses decrease from -$0.69 in 2020 to a smaller loss of -$0.41 in 2021, suggesting some improvement in operational efficiency or profitability at that time. However, this trend reverses in 2022 and 2023 with losses deepening to -$0.62 and -$0.81 respectively. A significant turnaround is projected for 2024 with the loss reducing dramatically to -$0.01, implying near breakeven or minimal loss. The loss then increases again to -$0.49 for 2025, indicating some anticipated operational challenges or expenses resurging.
- Price-to-Operating Profit Ratio (P/OP)
- No values are provided for the P/OP ratio in the dataset. As such, this metric cannot be analyzed or discussed in terms of valuation relative to operating profit.
In summary, the share price has shown considerable fluctuations with a general upward trend, potentially reflecting investor expectations or market sentiment changes. Operating profits per share have consistently been negative but with fluctuations that suggest periods of both improvement and deterioration. The near breakeven projection for 2024 is a positive indicator, though the anticipated increase in losses in 2025 warrants caution. The absence of P/OP ratio data limits the ability to assess valuation in relation to operational profitability.
Price to Sales (P/S)
Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
---|---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 247,873,415 | 241,868,658 | 235,863,985 | 230,767,860 | 223,876,229 | 213,213,015 | |
Selected Financial Data (US$) | |||||||
Revenue (in thousands) | 3,953,624) | 3,055,555) | 2,241,236) | 1,451,594) | 874,438) | 481,413) | |
Sales per share2 | 15.95 | 12.63 | 9.50 | 6.29 | 3.91 | 2.26 | |
Share price1, 3 | 308.86 | 329.68 | 121.68 | 189.66 | 190.21 | 51.45 | |
Valuation Ratio | |||||||
P/S ratio4 | 19.36 | 26.10 | 12.81 | 30.15 | 48.70 | 22.79 | |
Benchmarks | |||||||
P/S Ratio, Competitors5 | |||||||
Accenture PLC | — | 3.48 | 2.98 | 2.56 | 4.28 | 3.26 | |
Adobe Inc. | — | 8.27 | 13.88 | 8.95 | 14.94 | 17.04 | |
Cadence Design Systems Inc. | — | 15.26 | 20.02 | 14.23 | 12.55 | 13.85 | |
Fair Isaac Corp. | — | 29.64 | 15.36 | 8.05 | 8.08 | 10.38 | |
International Business Machines Corp. | — | 3.81 | 2.73 | 1.94 | 1.94 | 1.47 | |
Intuit Inc. | — | 10.72 | 10.72 | 9.30 | 16.09 | 11.78 | |
Microsoft Corp. | — | 12.82 | 11.60 | 10.40 | 12.81 | 10.85 | |
Oracle Corp. | 10.32 | 7.44 | 6.63 | 4.25 | 5.38 | 4.33 | |
Palantir Technologies Inc. | — | 102.00 | 23.27 | 9.34 | 15.58 | 39.86 | |
Palo Alto Networks Inc. | — | 13.62 | 10.87 | 9.62 | 10.72 | 6.66 | |
Salesforce Inc. | 7.40 | 8.45 | 5.84 | 7.40 | 9.24 | 8.88 | |
ServiceNow Inc. | — | 18.99 | 17.52 | 12.75 | 19.02 | 25.66 | |
Synopsys Inc. | — | 12.45 | 14.75 | 10.03 | 13.22 | 10.08 | |
Workday Inc. | 7.65 | 9.61 | 7.71 | 11.19 | 13.95 | 10.65 | |
P/S Ratio, Sector | |||||||
Software & Services | — | 10.32 | 8.77 | 7.46 | 9.46 | 7.68 | |
P/S Ratio, Industry | |||||||
Information Technology | — | 9.31 | 7.33 | 6.01 | 6.96 | 6.11 |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 3,953,624,000 ÷ 247,873,415 = 15.95
3 Closing price as at the filing date of CrowdStrike Holdings Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 308.86 ÷ 15.95 = 19.36
5 Click competitor name to see calculations.
- Share Price
- The share price showed significant volatility over the observed period. It experienced a substantial increase from $51.45 in January 2020 to a peak near $190 in early 2021 and 2022. However, it then declined notably to $121.68 by January 2023. Thereafter, the share price rose sharply again, reaching $329.68 by January 2024, before decreasing slightly to $308.86 by January 2025. This pattern reflects a fluctuating investor sentiment, with periods of rapid appreciation followed by corrections.
- Sales Per Share
- Sales per share demonstrated consistent growth throughout the entire period. Starting at $2.26 in January 2020, it increased steadily each year, reaching $3.91 in 2021, $6.29 in 2022, and continuing upwards to $15.95 by January 2025. This upward trajectory indicates improving revenue generation per share, reflecting business expansion and enhanced sales performance.
- Price-to-Sales (P/S) Ratio
- The P/S ratio exhibited a highly volatile trend during the time frame. Initially, it surged from 22.79 in 2020 to a peak of 48.7 in 2021, indicating that the market value rose faster than the sales per share during this period. This was followed by a decline to 30.15 in 2022 and a more pronounced drop to 12.81 in 2023, suggesting a relative market correction or increased sales growth relative to share price. Subsequently, the P/S ratio increased again to 26.10 in 2024, and then decreased to 19.36 in 2025, showing continued fluctuations in market valuation relative to sales.
- Overall Insights
- The data reveals strong underlying growth in sales per share throughout the period, signifying improving operational performance. However, the share price and P/S ratio fluctuated considerably, indicating varying market perceptions and valuation adjustments. The fluctuations in P/S ratio suggest that market expectations and investor confidence experienced cycles of optimism and correction, potentially influenced by external market conditions or company-specific developments.
Price to Book Value (P/BV)
Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
---|---|---|---|---|---|---|---|
No. shares of common stock outstanding1 | 247,873,415 | 241,868,658 | 235,863,985 | 230,767,860 | 223,876,229 | 213,213,015 | |
Selected Financial Data (US$) | |||||||
Total CrowdStrike Holdings, Inc. stockholders’ equity (in thousands) | 3,279,494) | 2,303,950) | 1,463,641) | 1,025,764) | 870,574) | 742,107) | |
Book value per share (BVPS)2 | 13.23 | 9.53 | 6.21 | 4.45 | 3.89 | 3.48 | |
Share price1, 3 | 308.86 | 329.68 | 121.68 | 189.66 | 190.21 | 51.45 | |
Valuation Ratio | |||||||
P/BV ratio4 | 23.34 | 34.61 | 19.61 | 42.67 | 48.91 | 14.78 | |
Benchmarks | |||||||
P/BV Ratio, Competitors5 | |||||||
Accenture PLC | — | 7.98 | 7.44 | 7.13 | 11.06 | 8.51 | |
Adobe Inc. | — | 12.61 | 16.31 | 11.22 | 15.94 | 16.53 | |
Cadence Design Systems Inc. | — | 15.15 | 24.05 | 18.46 | 13.68 | 14.90 | |
Fair Isaac Corp. | — | — | — | — | — | 40.58 | |
International Business Machines Corp. | — | 8.75 | 7.49 | 5.34 | 5.90 | 5.24 | |
Intuit Inc. | — | 9.47 | 8.92 | 7.20 | 15.71 | 17.71 | |
Microsoft Corp. | — | 11.71 | 11.92 | 12.38 | 15.16 | 13.11 | |
Oracle Corp. | 28.96 | 45.25 | 308.71 | — | 41.57 | 14.01 | |
Palantir Technologies Inc. | — | 58.42 | 14.90 | 6.94 | 10.48 | 28.60 | |
Palo Alto Networks Inc. | — | 21.15 | 42.84 | 252.00 | 71.88 | 20.61 | |
Salesforce Inc. | 4.59 | 4.94 | 3.13 | 3.37 | 4.73 | 4.48 | |
ServiceNow Inc. | — | 21.71 | 20.60 | 18.36 | 30.36 | 40.91 | |
Synopsys Inc. | — | 8.48 | 14.02 | 9.24 | 10.50 | 7.57 | |
Workday Inc. | 7.15 | 8.63 | 8.58 | 12.68 | 18.38 | 15.54 | |
P/BV Ratio, Sector | |||||||
Software & Services | — | 11.99 | 11.44 | 10.73 | 13.58 | 11.64 | |
P/BV Ratio, Industry | |||||||
Information Technology | — | 13.25 | 11.50 | 10.49 | 12.51 | 11.10 |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Total CrowdStrike Holdings, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 3,279,494,000 ÷ 247,873,415 = 13.23
3 Closing price as at the filing date of CrowdStrike Holdings Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 308.86 ÷ 13.23 = 23.34
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced significant volatility over the analyzed period. Initially, it rose sharply from $51.45 in early 2020 to a peak of approximately $190 in early 2021 and 2022. Subsequently, it declined notably to about $121 in early 2023 before surging again to nearly $330 in early 2024. The latest available data for early 2025 shows a slight decrease to around $309, suggesting some consolidation after the previous year's peak.
- Book Value per Share (BVPS) Trend
- BVPS demonstrated a consistent upward trajectory across the years. Starting at a low base of $3.48 in early 2020, it increased steadily each year, reaching $13.23 by early 2025. This progression reflects a continuous accumulation of equity value per share, indicating underlying growth in the company's net assets or retained earnings relative to the number of outstanding shares.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio exhibited considerable fluctuations, mirroring the movements in share price relative to the steadily rising book value. It started at 14.78 in early 2020, surged dramatically to near 49 in early 2021, and maintained a high level of around 43 in early 2022. The ratio then declined sharply to approximately 19.6 in early 2023, before climbing again to about 34.6 in early 2024 and settling around 23.3 in early 2025. These changes indicate variations in market valuation compared to the company's book value, reflecting shifts in investor sentiment and market expectations over time.
- Overall Insights
- The combination of steadily growing book value per share alongside volatile share price movements suggests that market valuation has been influenced by factors beyond fundamental net asset growth. The high peaks and drops in the P/BV ratio indicate periods of both optimistic and more cautious market assessments. The recent moderate decline in the P/BV ratio after the 2024 peak may suggest a market adjustment to a more balanced valuation level relative to the company's underlying book value.