Dollar Tree Inc. (NASDAQ:DLTR)

The share price demonstrated a general upward trend from 2005 to 2022, rising from $8.31 to $151.06. Notably, the price experienced fluctuations, including a decline during the period ending March 20, 2020, where it dropped from $104.22 to $75.97 before recovering strongly in subsequent years.

Operating profit per share showed consistent improvement over most of the observed period, increasing from $0.90 in 2005 to a peak of $8.42 by March 16, 2018. Anomalously, there was a significant negative value recorded in the period ending March 27, 2019, at -$3.94, suggestive of a substantial operating loss. However, this was followed by a recovery with operating profits returning to positive levels and reaching $8.05 by March 15, 2022.

The price to operating profit ratio (P/OP) exhibited variability without a clear trend, fluctuating between approximately 7.92 and 18.77. Early in the series, the ratio ranged between 7.92 and 12.10, rising to higher levels between 16 and 18 during 2014 to 2017. Data for one period is missing, and in the later years, the ratio maintained relatively elevated levels, peaking at 18.77 in 2022. This indicates variations in market valuation relative to operating profitability, with periods where the market valued the company at significantly higher multiples of its operating profit per share.

Overall, the equity value appreciated substantially over the timeframe, supported by strengthening operating profit per share, aside from a brief loss period. The fluctuations in the price to operating profit ratio suggest changes in investor sentiment or market conditions impacting valuation multiples independently from operating performance.