Marriott International Inc. (NASDAQ:MAR)

The financial performance from February 2006 to February 2020 is characterized by significant volatility in valuation multiples, closely tracking shifts in share price and operating profit per share. The Price to operating profit (P/OP) ratio exhibits a cyclical pattern, reflecting broader market conditions and the company's operational recovery following periods of instability.

Initial Contraction and Crisis Impact (2006–2010)

A pronounced downward trend in the P/OP ratio is observed between 2006 and 2009, falling from 25.28 to 7.01. This decline was driven by a substantial reduction in share price, which reached a period low of 15.73 US$ in 2009. The instability peaked in 2010, where operating profit per share became negative (-0.42 US$), rendering the P/OP ratio undefined for that period.

Recovery and Variable Valuation (2011–2016)

The period following 2010 is marked by a recovery in both share price and operational profitability. The P/OP ratio experienced a sharp increase, returning to 21.66 in 2011 and 22.10 in 2012. Subsequent years showed increased volatility; a dip to 13.20 in 2013 was followed by a gradual ascent to 19.83 in 2015, before dropping again to 12.19 in 2016. This fluctuation indicates a period of market adjustment as operating profit per share grew from 1.89 US$ to 5.33 US$.

Stabilization at Elevated Levels (2017–2020)

From 2017 onward, the valuation multiples stabilized at a higher baseline. The P/OP ratio remained consistently high, ranging between 17.87 and 24.67. This stability coincided with a significant increase in share price, peaking at 141.29 US$ in 2018, and a corresponding rise in operating profit per share, which reached its highest point of 6.97 US$ in 2019. By February 2020, the P/OP ratio stood at 21.55, reflecting a valuation closely aligned with the levels seen during the early recovery phase of 2011-2012, despite much higher absolute profit figures.