Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2012
- Net Profit Margin since 2012
- Debt to Equity since 2012
- Price to Operating Profit (P/OP) since 2012
- Price to Book Value (P/BV) since 2012
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Historical Valuation Ratios (Summary)
Kraft Foods Group Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
The financial ratios of Kraft Foods Group Inc. over the analyzed quarters exhibit distinct trends that offer insights into the company's valuation dynamics and market perception.
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a declining trend from 19.55 in the first quarter of 2013 to a low of 12.07 by the first quarter of 2014, suggesting an improvement in earnings relative to share price or a decrease in investor expectations during this period. Afterward, the ratio gradually rises through 2014, reaching a sharp peak of 36.18 by the fourth quarter of 2014 and further increasing dramatically to 53.01 in the first quarter of 2015. This sharp increase may indicate heightened investor optimism about future earnings growth or a reduction in earnings during these quarters.
- Price to Operating Profit (P/OP) Ratio
- This ratio mirrors the trend observed in the P/E ratio, with a steady decline from 11.53 in the first quarter of 2013 to just above 7 by the first quarter of 2014, reflecting improved operating profit or a more favorable price. Subsequently, the ratio climbs, particularly spiking in the last two quarters observed, reaching 19.96, and then sharply to 29.45 by the first quarter of 2015. Such an increase suggests a potential overvaluation relative to operating profit or a drop in operating profit margins.
- Price to Sales (P/S) Ratio
- The P/S ratio remains relatively stable within a narrow range from 1.72 to 1.87 during 2013, indicating steady sales relative to market price. It experiences a slight decline and normalization through the first half of 2014, then begins to rise, showing gradual growth from 1.76 to 2.79 by the first quarter of 2015. This increase suggests an improving market valuation relative to sales revenue, possibly due to expected growth or improved profitability driving higher stock prices.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio trends downward from 8.44 in early 2013 to around 6.3 by the start of 2014, implying a decrease in market valuation relative to the company's net asset value. This is followed by a moderate stabilizing phase but then a sharp rise occurs in the latter part of 2014 and into early 2015, reaching 11.25. The marked increase at the end of the period may signal growing investor confidence or potential overvaluation relative to book value.
Overall, the ratios indicate that the company experienced a phase of declining relative market valuations across earnings, operating profit, sales, and book values from early 2013 through the first quarter of 2014, followed by a period of increasing valuation metrics. The sharp escalations in P/E and P/OP ratios towards the end of 2014 and beginning of 2015 suggest heightened market optimism or potentially inconsistent earnings and profit figures during this period, which would warrant close monitoring. The rising P/S and P/BV ratios support the view of growing market confidence, albeit with caution due to the substantial increases in price-based valuation multiples.
Price to Earnings (P/E)
Kraft Foods Group Inc., historical P/E calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||
| Selected Financial Data (US$) | |||||||||||||
| Net earnings (in millions) | |||||||||||||
| Earnings per share (EPS)2 | |||||||||||||
| Share price1, 3 | |||||||||||||
| Valuation Ratio | |||||||||||||
| P/E ratio4 | |||||||||||||
| Benchmarks | |||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||
| lululemon athletica inc. | |||||||||||||
| Nike Inc. | |||||||||||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
1 Data adjusted for splits and stock dividends.
2 Q1 2015 Calculation
EPS
= (Net earningsQ1 2015
+ Net earningsQ4 2014
+ Net earningsQ3 2014
+ Net earningsQ2 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Kraft Foods Group Inc. Quarterly or Annual Report.
4 Q1 2015 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a generally upward trend over the observed periods. Initially priced at $53.11, it increased modestly through the first three quarters, reaching $55.09 by the end of 2013. The price stabilized around the mid-$50s in early 2014, before experiencing a notable rise starting in the fourth quarter of 2014, reaching $64.17. The most significant increase occurred in the first quarter of 2015, when the share price surged to $85.88.
- Earnings Per Share (EPS)
- Earnings per share showed some variability throughout the periods. EPS increased steadily from $2.72 in the first quarter of 2013, peaking at $4.66 in the first quarter of 2014. However, this was followed by a gradual decline through late 2014, dropping to $1.77 in the fourth quarter, with a slight decrease to $1.62 by the first quarter of 2015. The downward trend in EPS during 2014 contrasted with the relatively stable or rising share price during the same timeframe.
- Price-to-Earnings (P/E) Ratio
- The price-to-earnings ratio demonstrated considerable fluctuation, reflecting the interplay between share price and EPS movements. Initially, the P/E ratio decreased from 19.55 to around 12.07 between March 2013 and March 2014, indicating improving earnings relative to price. However, from mid-2014 onwards, the P/E ratio surged dramatically, reaching 36.18 in the fourth quarter of 2014 and peaking at 53.01 in the first quarter of 2015. This increase corresponds with the declining EPS and rising share price, resulting in higher valuation multiples despite reduced earnings.
Price to Operating Profit (P/OP)
Kraft Foods Group Inc., historical P/OP calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||
| Selected Financial Data (US$) | |||||||||||||
| Operating income (in millions) | |||||||||||||
| Operating profit per share2 | |||||||||||||
| Share price1, 3 | |||||||||||||
| Valuation Ratio | |||||||||||||
| P/OP ratio4 | |||||||||||||
| Benchmarks | |||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||
| lululemon athletica inc. | |||||||||||||
| Nike Inc. | |||||||||||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
1 Data adjusted for splits and stock dividends.
2 Q1 2015 Calculation
Operating profit per share
= (Operating incomeQ1 2015
+ Operating incomeQ4 2014
+ Operating incomeQ3 2014
+ Operating incomeQ2 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Kraft Foods Group Inc. Quarterly or Annual Report.
4 Q1 2015 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price has shown an overall upward trend over the observed period. Starting at 53.11 US$ in March 2013, it experienced moderate fluctuations in the first five quarters, remaining mostly within the 53 to 57 US$ range. From the fourth quarter of 2014 onwards, a sharp increase is evident, culminating in a peak of 85.88 US$ by March 2015. This suggests renewed investor confidence or positive market developments during the final period.
- Operating Profit Per Share
- Operating profit per share displayed initial growth from 4.61 US$ in March 2013 to a peak of 7.87 US$ in March 2014, indicating improving operational performance. Following this peak, a decline is noticeable, with the figure falling steadily to 2.92 US$ by March 2015. This decline in profitability per share during the latter half of the period could point to rising costs, lower margins, or other operational challenges.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio decreased from 11.53 in March 2013 to a low of approximately 7.14 in March 2014, reflecting improved operating profit relative to share price and potentially indicating undervaluation or enhanced earnings quality. However, subsequent periods show a significant increase in the ratio, reaching 29.45 by March 2015. This sharp rise predominantly reflects the divergence between a rising share price and declining operating profit per share, suggesting a market valuation not fully supported by operating earnings.
- Overall Analysis
- The company’s share price appreciates notably towards the end of the period despite a decline in operating profit per share, leading to a substantial increase in the P/OP ratio. This disparity might imply market optimism or speculative factors rather than fundamental operational improvements. The early phase of the timeline showed concurrent growth in profitability and share price with more balanced valuation ratios, whereas the latter period signals a potential overvaluation or anticipation of future performance improvements not yet realized in operating profit figures.
Price to Sales (P/S)
Kraft Foods Group Inc., historical P/S calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||
| Selected Financial Data (US$) | |||||||||||||
| Net revenues (in millions) | |||||||||||||
| Sales per share2 | |||||||||||||
| Share price1, 3 | |||||||||||||
| Valuation Ratio | |||||||||||||
| P/S ratio4 | |||||||||||||
| Benchmarks | |||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||
| lululemon athletica inc. | |||||||||||||
| Nike Inc. | |||||||||||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
1 Data adjusted for splits and stock dividends.
2 Q1 2015 Calculation
Sales per share
= (Net revenuesQ1 2015
+ Net revenuesQ4 2014
+ Net revenuesQ3 2014
+ Net revenuesQ2 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Kraft Foods Group Inc. Quarterly or Annual Report.
4 Q1 2015 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a general upward trend over the analyzed period. Starting at $53.11 in March 2013, it experienced minor fluctuations but remained relatively stable throughout 2013 and 2014, with values ranging between approximately $53.59 and $64.17. A notable increase occurred in the final reported quarter, reaching $85.88 by March 2015, indicating a substantial appreciation in market value during this last period.
- Sales per Share
- Sales per share remained relatively stable across the reported periods. Values fluctuated slightly between $30.35 and $30.96, showing minimal variation quarter-to-quarter. This stability suggests consistent revenue generation per share without significant growth or decline throughout the timeframe.
- Price-to-Sales (P/S) Ratio
- The P/S ratio demonstrated a steady increase over the observed periods. Beginning at 1.72 in March 2013, it experienced modest rises and occasional minor dips but maintained an overall upward trajectory. The ratio notably increased to 2.79 by March 2015, reflecting a growing valuation of the company's shares relative to its sales. This trend corresponds with the marked increase in share price, while sales per share remain steady, suggesting improved market sentiment or expectations regarding future growth or profitability.
Price to Book Value (P/BV)
Kraft Foods Group Inc., historical P/BV calculation (quarterly data)
| Mar 28, 2015 | Dec 27, 2014 | Sep 27, 2014 | Jun 28, 2014 | Mar 29, 2014 | Dec 28, 2013 | Sep 28, 2013 | Jun 29, 2013 | Mar 30, 2013 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||
| Selected Financial Data (US$) | |||||||||||||
| Equity (in millions) | |||||||||||||
| Book value per share (BVPS)2 | |||||||||||||
| Share price1, 3 | |||||||||||||
| Valuation Ratio | |||||||||||||
| P/BV ratio4 | |||||||||||||
| Benchmarks | |||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||
| lululemon athletica inc. | |||||||||||||
| Nike Inc. | |||||||||||||
Based on: 10-Q (reporting date: 2015-03-28), 10-K (reporting date: 2014-12-27), 10-Q (reporting date: 2014-09-27), 10-Q (reporting date: 2014-06-28), 10-Q (reporting date: 2014-03-29), 10-K (reporting date: 2013-12-28), 10-Q (reporting date: 2013-09-28), 10-Q (reporting date: 2013-06-29), 10-Q (reporting date: 2013-03-30).
1 Data adjusted for splits and stock dividends.
2 Q1 2015 Calculation
BVPS = Equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Kraft Foods Group Inc. Quarterly or Annual Report.
4 Q1 2015 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The share price of the company exhibited a general upward trend over the examined periods. It started at $53.11 and showed moderate fluctuations, with values around the mid-50s to low 60s, before a notable increase to $85.88 in the final reported quarter. This indicates a strengthening market valuation towards the end of the timeframe.
The book value per share (BVPS) demonstrated a growth pattern from $6.29 initially to a peak near $9.49 before declining to approximately $7.63 in the last quarter. This rise followed by a decline suggests an improvement in the company's net asset value per share during the middle periods, with some reduction thereafter.
The price-to-book value (P/BV) ratio showed a decreasing trend from 8.44 down to around 5.83, indicating that the market price was becoming more reasonably valued relative to the book value. However, this ratio reversed course later, increasing sharply to 11.25 in the final quarter. The rising P/BV ratio in the ending period, in conjunction with the reduced BVPS and significantly increased share price, suggests the market was pricing the shares at a higher premium relative to the book value.
In summary, the financial ratios suggest an improving underlying value per share during the majority of the periods, accompanied by a market share price increasing at a variable pace. The final quarter shows a strong surge in market price that outpaces the growth in book value, leading to elevated valuation multiples.