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
First Solar Inc., current price multiples
| First Solar Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | $199.67 | ||||||||||||||||
| No. shares of common stock outstanding | 107,057,732 | ||||||||||||||||
| Growth rate (g) | 5.11% | ||||||||||||||||
| Earnings per share (EPS) | $7.76 | ||||||||||||||||
| Next year expected EPS | $8.16 | ||||||||||||||||
| Operating profit per share | $8.01 | ||||||||||||||||
| Sales per share | $31.00 | ||||||||||||||||
| Book value per share (BVPS) | $62.47 | ||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | 25.73 | 140.21 | 72.23 | 20.47 | 219.93 | — | 42.89 | 32.53 | 177.29 | 52.89 | 17.24 | 39.30 | 138.14 | 61.42 | |||
| Price to next year expected earnings | 24.48 | 125.77 | 70.69 | 15.30 | 231.78 | — | 28.38 | 23.02 | 160.85 | 37.89 | 12.42 | 33.73 | 122.32 | 48.55 | |||
| Price-earnings-growth (PEG) | 5.04 | 12.21 | 33.03 | 0.61 | — | — | 0.84 | 0.79 | 17.34 | 1.34 | 0.44 | 2.38 | 10.68 | 2.32 | |||
| Price to operating profit (P/OP) | 24.94 | 121.09 | 58.11 | 18.67 | 96.30 | — | 35.40 | 29.20 | 105.78 | 47.33 | 17.36 | 34.51 | 127.36 | 51.14 | |||
| Price to sales (P/S) | 6.44 | 8.92 | 12.53 | 5.41 | 25.14 | 1.84 | 12.07 | 8.35 | 5.49 | 29.54 | 4.49 | 12.06 | 23.57 | 12.52 | |||
| Price to book value (P/BV) | 3.20 | 4.00 | 3.36 | 7.73 | 19.16 | 0.98 | 35.17 | 14.58 | 3.06 | 48.60 | 6.66 | 11.16 | 18.37 | 19.66 | |||
Based on: 10-K (reporting date: 2023-12-31).
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)
First Solar Inc., historical price multiples
Based on: 10-K (reporting date: 2023-12-31), 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).
- Price to Earnings (P/E) Ratio
- The P/E ratio shows variability across the reported years, beginning at 21.56 in 2020 and declining to 17.16 in 2021, before rising again to 18.65 in 2023. The absence of data for 2019 and 2022 limits a full trend analysis, but the available data suggest some fluctuations in market expectations relative to earnings.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio exhibits a notable decrease from 27.05 in 2020 to 13.7 in 2021, indicating an improvement in operating profitability relative to the share price during that period. The ratio then increases to 18.07 in 2023, which points to some reduced operating profit efficiency or a higher valuation by the market thereafter. Missing data for 2019 and 2022 restrict conclusive trend observations.
- Price to Sales (P/S) Ratio
- The P/S ratio reveals an overall increasing trend with fluctuations, starting at 1.74 in 2019 and rising markedly to 3.17 in 2020. It then slightly decreases to 2.75 in 2021, before sharply escalating to 6.88 in 2022 and slightly declining to 4.67 in 2023. This trend suggests varying market valuation relative to revenue, with notable spikes in 2022 potentially reflecting heightened investor expectations or sales growth concerns.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio also increases across the period, from 1.05 in 2019 to 1.56 in 2020, then a slight decrease to 1.35 in 2021. There is a significant jump to 3.09 in 2022, followed by a decline to 2.32 in 2023. This pattern indicates fluctuations in market valuation relative to the book value, with the 2022 peak possibly indicating a period of premium market valuation or asset reappraisal.
Price to Earnings (P/E)
First Solar Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 106,848,929 | 106,609,094 | 106,333,764 | 105,986,398 | 105,457,669 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in thousands) | 830,777) | (44,166) | 468,693) | 398,355) | (114,933) | |
| Earnings per share (EPS)2 | 7.78 | -0.41 | 4.41 | 3.76 | -1.09 | |
| Share price1, 3 | 144.99 | 169.14 | 75.62 | 81.02 | 50.59 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 18.65 | — | 17.16 | 21.56 | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 317.27 | 96.16 | 45.54 | 41.66 | — | |
| Analog Devices Inc. | 27.14 | 31.21 | 68.31 | 41.43 | 31.04 | |
| Applied Materials Inc. | 19.63 | 13.55 | 22.05 | 22.31 | 20.25 | |
| Broadcom Inc. | 36.78 | 20.70 | 40.73 | 66.38 | 47.09 | |
| Intel Corp. | 109.27 | 14.54 | 9.85 | 11.02 | — | |
| KLA Corp. | 20.04 | 16.89 | 25.97 | 25.92 | 18.44 | |
| Lam Research Corp. | 19.26 | 13.77 | 21.03 | 24.23 | 13.64 | |
| Micron Technology Inc. | — | 6.62 | 13.38 | 21.80 | 7.98 | |
| NVIDIA Corp. | 131.70 | 68.08 | 78.54 | 67.59 | — | |
| Qualcomm Inc. | 17.07 | 9.75 | 17.15 | 28.06 | 22.03 | |
| Texas Instruments Inc. | 22.24 | 18.88 | 20.38 | 27.95 | — | |
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 48.39 | 22.88 | 24.30 | 25.24 | — | |
| P/E Ratio, Industry | ||||||
| Information Technology | 35.92 | 26.81 | 29.49 | 31.10 | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 830,777,000 ÷ 106,848,929 = 7.78
3 Closing price as at the filing date of First Solar Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 144.99 ÷ 7.78 = 18.65
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant volatility over the observed period. Starting at $50.59 at the end of 2019, it rose sharply to $81.02 by the end of 2020, indicating a strong upward momentum. The price then experienced a slight decline to $75.62 in 2021 before surging dramatically to $169.14 in 2022. However, by the end of 2023, the share price decreased to $144.99, reflecting a moderation of the prior year's peak but still maintaining a substantial increase compared to earlier years.
- Earnings Per Share (EPS)
- The EPS showed considerable fluctuations, affecting the perceived profitability over the years. In 2019, the EPS was negative at -$1.09, indicating losses. This turned to positive territory with $3.76 in 2020 and increased further to $4.41 in 2021, suggesting improving profitability. However, the EPS declined sharply to a negative figure of -$0.41 in 2022, suggesting a loss during that year. The metric rebounded strongly in 2023, reaching $7.78, marking the highest profitability level across the observed years.
- Price-to-Earnings Ratio (P/E)
- The P/E ratio, a measure of market valuation relative to earnings, was not available for 2019 and 2022. In 2020, it stood at 21.56, indicating moderate valuation. This ratio decreased to 17.16 in 2021, potentially reflecting improved earnings relative to share price or market reassessment. The P/E ratio for 2023 was 18.65, which, while higher than 2021, remained below the 2020 level, suggesting a balanced valuation despite elevated earnings and share price.
- Overall Summary
- The financial data reveals noteworthy volatility in both market valuation and profitability. The company experienced a period of increasing earnings through 2021, interrupted by a loss in 2022, followed by a strong recovery in 2023. Share prices generally trended upwards, peaking in 2022 before a correction in 2023. The P/E ratios reflect changing investor sentiment and earnings performance, indicating phases of optimism tempered by fluctuations in profitability. This pattern suggests an environment influenced by variable financial results and market reactions.
Price to Operating Profit (P/OP)
First Solar Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 106,848,929 | 106,609,094 | 106,333,764 | 105,986,398 | 105,457,669 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in thousands) | 857,266) | (27,236) | 586,751) | 317,489) | (161,785) | |
| Operating profit per share2 | 8.02 | -0.26 | 5.52 | 3.00 | -1.53 | |
| Share price1, 3 | 144.99 | 169.14 | 75.62 | 81.02 | 50.59 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 18.07 | — | 13.70 | 27.05 | — | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 675.69 | 100.42 | 39.48 | 75.77 | — | |
| Analog Devices Inc. | 23.53 | 26.16 | 56.12 | 33.76 | 24.74 | |
| Applied Materials Inc. | 17.58 | 11.35 | 18.85 | 18.50 | 16.36 | |
| Broadcom Inc. | 31.96 | 16.33 | 30.78 | 44.04 | 36.85 | |
| Intel Corp. | 1,984.43 | 49.91 | 10.06 | 9.72 | — | |
| KLA Corp. | 16.99 | 15.36 | 21.69 | 20.99 | 15.60 | |
| Lam Research Corp. | 16.79 | 11.79 | 18.34 | 20.40 | 12.13 | |
| Micron Technology Inc. | — | 5.93 | 12.48 | 19.51 | 6.83 | |
| NVIDIA Corp. | 136.19 | 66.12 | 75.08 | 66.40 | — | |
| Qualcomm Inc. | 15.85 | 7.95 | 15.84 | 23.32 | 12.60 | |
| Texas Instruments Inc. | 19.75 | 16.29 | 17.67 | 26.53 | — | |
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 44.62 | 21.30 | 22.09 | 22.38 | — | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 29.91 | 22.75 | 26.04 | 26.91 | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 857,266,000 ÷ 106,848,929 = 8.02
3 Closing price as at the filing date of First Solar Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 144.99 ÷ 8.02 = 18.07
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits significant volatility but demonstrates an overall upward trajectory from 2019 through 2023. Starting at $50.59 in 2019, it increased to $81.02 in 2020, slightly declined to $75.62 in 2021, then surged to a peak of $169.14 in 2022, before moderating to $144.99 in 2023. This pattern suggests periods of strong investor confidence, particularly in 2022, followed by some correction in 2023.
- Operating Profit Per Share (OPPS)
- The operating profit per share reveals considerable fluctuations over the five-year period. It began with a negative value of -$1.53 in 2019, indicating an operating loss per share. A notable improvement occurred in 2020 and 2021, reaching positive values of $3 and $5.52 respectively, reflecting enhanced operational performance. However, 2022 marked a return to a slight operating loss with -$0.26 per share, before recovering strongly to $8.02 in 2023, the highest in the examined period. This pattern suggests operational challenges in 2019 and 2022 but overall a positive growth trend in profitability by 2023.
- Price to Operating Profit Ratio (P/OP)
- This valuation metric was available for only three years within the period. In 2020, the ratio was high at 27.05, indicating that the share price was valued at a considerable multiple of the operating profit per share. It decreased to 13.7 in 2021, suggesting improved valuation relative to operating earnings. No data is provided for 2022. In 2023, the ratio rose again to 18.07, implying a moderate revaluation. The fluctuations in the P/OP ratio highlight changing market perceptions of operational profitability and growth prospects.
- Summary of Insights
- Overall, the company experienced volatility in both market valuation and operational profitability over the five years. The share price generally trended upwards, with a significant peak in 2022 followed by some correction. Operating profit per share showed a recovery from losses in 2019 to strong profitability in 2023, despite a setback in 2022. The price to operating profit ratio similarly exhibited variation, reflecting changes in market sentiment and potentially risk perception. The data suggests that while operational performance faced challenges intermittently, market valuation responded dynamically, possibly influenced by broader market conditions or company-specific factors.
Price to Sales (P/S)
First Solar Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 106,848,929 | 106,609,094 | 106,333,764 | 105,986,398 | 105,457,669 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in thousands) | 3,318,602) | 2,619,319) | 2,923,377) | 2,711,332) | 3,063,117) | |
| Sales per share2 | 31.06 | 24.57 | 27.49 | 25.58 | 29.05 | |
| Share price1, 3 | 144.99 | 169.14 | 75.62 | 81.02 | 50.59 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 4.67 | 6.88 | 2.75 | 3.17 | 1.74 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 11.95 | 5.38 | 8.76 | 10.63 | — | |
| Analog Devices Inc. | 7.31 | 7.14 | 12.98 | 9.03 | 7.06 | |
| Applied Materials Inc. | 5.08 | 3.43 | 5.63 | 4.69 | 3.75 | |
| Broadcom Inc. | 14.46 | 7.00 | 9.55 | 7.40 | 5.62 | |
| Intel Corp. | 3.40 | 1.85 | 2.48 | 2.96 | — | |
| KLA Corp. | 6.47 | 6.09 | 7.80 | 5.43 | 4.74 | |
| Lam Research Corp. | 4.99 | 3.68 | 5.62 | 5.43 | 3.10 | |
| Micron Technology Inc. | 4.94 | 1.87 | 2.83 | 2.73 | 2.15 | |
| NVIDIA Corp. | 21.33 | 24.67 | 20.41 | 17.31 | — | |
| Qualcomm Inc. | 3.45 | 2.85 | 4.62 | 6.20 | 3.98 | |
| Texas Instruments Inc. | 8.26 | 8.25 | 8.63 | 10.81 | — | |
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 8.26 | 5.82 | 6.25 | 5.80 | — | |
| P/S Ratio, Industry | ||||||
| Information Technology | 7.33 | 6.01 | 6.96 | 6.11 | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 3,318,602,000 ÷ 106,848,929 = 31.06
3 Closing price as at the filing date of First Solar Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 144.99 ÷ 31.06 = 4.67
5 Click competitor name to see calculations.
- Share Price Trends
- The share price demonstrates a general upward trajectory from 2019 to 2023, with some variability. Starting at $50.59 in 2019, the price increased to $81.02 in 2020, then slightly declined to $75.62 in 2021. A significant surge occurred in 2022, reaching $169.14, followed by a decrease to $144.99 in 2023. Overall, the share price more than doubled over the five-year period.
- Sales Per Share Trends
- Sales per share show some fluctuations without a clear consistent pattern. Beginning at $29.05 in 2019, sales per share decreased to $25.58 in 2020, then rose modestly to $27.49 in 2021 before declining to the lowest value of $24.57 in 2022. In 2023, sales per share increased substantially to $31.06, the highest in the given period. This suggests some volatility in the company's sales performance relative to outstanding shares.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio indicates notable changes over the years, reflecting shifts in market valuation relative to sales. It increased from 1.74 in 2019 to 3.17 in 2020, then slightly decreased to 2.75 in 2021. A sharp rise occurred in 2022, with the ratio reaching 6.88, indicating a significantly higher market valuation relative to sales during that year. The ratio declined to 4.67 in 2023, though it remained elevated compared to earlier years. This pattern suggests that market sentiment and valuation multiples experienced fluctuations, with the peak in 2022 potentially reflecting investor optimism or anticipated growth.
- Summary of Financial Metrics Relationships
- The share price and P/S ratio exhibit parallel trends, particularly the pronounced increase in 2022, emphasizing heightened market valuation irrespective of fluctuating sales per share. Sales per share, while more variable, do not display the same level of growth, indicating that stock price increases may not be solely driven by sales growth but possibly by other factors such as expectations or profitability enhancements.
Price to Book Value (P/BV)
First Solar Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 106,848,929 | 106,609,094 | 106,333,764 | 105,986,398 | 105,457,669 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | 6,687,469) | 5,836,055) | 5,959,551) | 5,520,928) | 5,096,767) | |
| Book value per share (BVPS)2 | 62.59 | 54.74 | 56.05 | 52.09 | 48.33 | |
| Share price1, 3 | 144.99 | 169.14 | 75.62 | 81.02 | 50.59 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 2.32 | 3.09 | 1.35 | 1.56 | 1.05 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 4.85 | 2.32 | 19.21 | 17.77 | — | |
| Analog Devices Inc. | 2.53 | 2.35 | 2.50 | 4.22 | 3.61 | |
| Applied Materials Inc. | 8.23 | 7.25 | 10.60 | 7.63 | 6.67 | |
| Broadcom Inc. | 21.59 | 10.23 | 10.50 | 7.40 | 5.09 | |
| Intel Corp. | 1.75 | 1.15 | 2.05 | 2.84 | — | |
| KLA Corp. | 23.25 | 40.05 | 15.98 | 11.83 | 8.15 | |
| Lam Research Corp. | 10.58 | 10.10 | 13.64 | 10.55 | 6.40 | |
| Micron Technology Inc. | 1.74 | 1.15 | 1.79 | 1.50 | 1.40 | |
| NVIDIA Corp. | 26.03 | 24.95 | 20.14 | 15.49 | — | |
| Qualcomm Inc. | 5.72 | 7.00 | 15.59 | 24.00 | 19.69 | |
| Texas Instruments Inc. | 8.57 | 11.33 | 11.87 | 17.02 | — | |
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 6.44 | 5.18 | 6.24 | 6.15 | — | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 11.50 | 10.49 | 12.51 | 11.10 | — | |
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 6,687,469,000 ÷ 106,848,929 = 62.59
3 Closing price as at the filing date of First Solar Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 144.99 ÷ 62.59 = 2.32
5 Click competitor name to see calculations.
The analysis of the data reveals several noteworthy trends regarding the company's stock price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the five-year period ending in 2023.
- Share Price
- The share price demonstrated overall growth from 50.59 USD at the end of 2019 to a peak of 169.14 USD at the end of 2022, before declining somewhat to 144.99 USD in 2023. This reflects a substantial appreciation in market valuation over the five-year span, with the most significant upward movement occurring between 2021 and 2022.
- Book Value Per Share (BVPS)
- BVPS showed a consistent upward trend from 48.33 USD in 2019 to 62.59 USD in 2023, indicating a steady increase in the company's net asset value per share. There was a slight decrease from 56.05 USD in 2021 to 54.74 USD in 2022, but this was followed by a recovery in 2023.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio experienced significant fluctuations over the period. Starting at 1.05 in 2019, the ratio increased sharply to 1.56 in 2020, then dipped to 1.35 in 2021. A pronounced spike occurred in 2022, reaching 3.09, indicating that the market price far exceeded the book value per share. In 2023, the ratio decreased to 2.32, which, while lower than the previous year's peak, still suggests a relatively high market valuation compared to book value.
In summary, the data depicts a company whose market valuation has generally outpaced its book value growth, especially noticeable in the elevated P/BV ratios in the last two years. The peak share price and P/BV ratio in 2022 suggest heightened market optimism or speculative pressure, while the subsequent decline in 2023 may indicate partial correction or reconsideration of market valuation. Meanwhile, the steady increase in BVPS reflects ongoing growth in the company’s underlying equity value.