Price to Earnings (P/E)
since 2012
Calculation
Kraft Foods Group Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 19, 2015 | 36.18 | = | 64.17 | ÷ | 1.77 | 1.77 | = | 1,043 | ÷ | 587,988,695 | |
| Feb 21, 2014 | 12.10 | = | 55.09 | ÷ | 4.55 | 4.55 | = | 2,715 | ÷ | 596,311,563 | |
| Mar 21, 2013 | 18.67 | = | 51.66 | ÷ | 2.77 | 2.77 | = | 1,642 | ÷ | 593,372,593 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Kraft Foods Group Inc. Annual Report.
The share price demonstrated a consistent upward trajectory over the analyzed period, increasing from 51.66 US$ in March 2013 to 64.17 US$ by February 2015. In contrast, earnings per share (EPS) exhibited significant volatility, peaking in February 2014 before experiencing a sharp decline in February 2015. This divergence between steady share price appreciation and volatile earnings performance resulted in substantial fluctuations in the price-to-earnings (P/E) ratio.
- Share Price Performance
- A sustained positive trend is observed, with the stock price increasing incrementally each year, reaching its highest point of 64.17 US$ in February 2015.
- Earnings per Share (EPS) Trends
- Profitability per share showed an initial increase from 2.77 US$ in 2013 to 4.55 US$ in 2014, followed by a steep decrease to 1.77 US$ in 2015, indicating a period of earnings instability.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio experienced a contraction to 12.10 in 2014 as earnings grew. However, the ratio surged to 36.18 by February 2015. This spike was the result of the share price continuing to rise while the EPS dropped to its lowest level in the sequence, indicating a significant expansion in the valuation multiple relative to actual earnings.
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Comparison to Competitors
Kraft Foods Group Inc., P/E, long-term trends, comparison to competitors
| Kraft Foods Group Inc. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Feb 19, 2015 | 36.18 | 26.62 | 25.06 |
| Feb 21, 2014 | 12.10 | 34.54 | 22.64 |
| Mar 21, 2013 | 18.67 | 59.24 | 19.06 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
Comparison to Sector (Consumer Durables & Apparel)
Kraft Foods Group Inc., P/E, long-term trends, comparison to sector (consumer durables & apparel)
| Kraft Foods Group Inc. | Consumer Durables & Apparel | |
|---|---|---|
| Feb 19, 2015 | 36.18 | 25.21 |
| Feb 21, 2014 | 12.10 | 23.81 |
| Mar 21, 2013 | 18.67 | 22.14 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
Comparison to Industry (Consumer Discretionary)
Kraft Foods Group Inc., P/E, long-term trends, comparison to industry (consumer discretionary)
| Kraft Foods Group Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 19, 2015 | 36.18 | 29.48 |
| Feb 21, 2014 | 12.10 | 26.50 |
| Mar 21, 2013 | 18.67 | 20.90 |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).