Microsoft Excel LibreOffice Calc

Marriott International Inc. (MAR)


Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

Marriott International Inc., current price multiples

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Marriott International Inc. Booking Holdings Inc. Delta Air Lines Inc. McDonald’s Corp. Starbucks Corp. Travel & Leisure Consumer Services
Selected Financial Data
Current share price (P) $ 124.50
No. shares of common stock outstanding 339,668,839
Growth rate (g) 40.89%
 
Earnings per share (EPS) $ 5.61
Next year expected EPS $ 7.91
Operating profit per share $ 6.97
Sales per share $ 61.11
Book value per share (BVPS) $ 6.55
Ratios (Price Multiples)
Price to earnings (P/E) 22.18 19.38 8.59 24.13 19.81 19.03 28.85
Price to next year expected earnings 15.74 15.06 6.95 19.80 15.56 14.01 25.10
Price-earnings-growth (PEG) 0.54 0.67 0.37 1.10 0.73 0.53 1.93
Price to operating profit (P/OP) 17.87 14.51 6.42 16.20 23.04 15.03 18.81
Price to sales (P/S) 2.04 5.33 0.76 6.80 3.62 3.08 1.55
Price to book value (P/BV) 19.01 8.82 2.47 76.52 19.69 6.36

Based on: 10-K (filing date: 2019-03-01).

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Marriott International Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Price to earnings (P/E) 22.17 36.81 43.27 19.16 30.52
Price to operating profit (P/OP) 17.87 21.41 24.67 12.19 19.83
Price to sales (P/S) 2.04 2.21 1.98 1.14 1.67
Price to book value (P/BV) 19.00 13.54 6.30

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Marriott International Inc.’s P/E ratio declined from 2016 to 2017 and from 2017 to 2018.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Marriott International Inc.’s P/OP ratio declined from 2016 to 2017 and from 2017 to 2018.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Marriott International Inc.’s P/S ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Marriott International Inc.’s P/BV ratio increased from 2016 to 2017 and from 2017 to 2018.

Price to Earnings (P/E)

Marriott International Inc., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 339,668,839 357,437,289 383,561,428 253,481,935 276,542,350
Selected Financial Data (USD $)
Net income (in millions) 1,907  1,372  780  859  753 
Earnings per share (EPS)3 5.61 3.84 2.03 3.39 2.72
Share price1, 2 124.45 141.29 87.99 64.94 83.10
Ratio
P/E ratio4 22.17 36.81 43.27 19.16 30.52
Benchmarks
P/E Ratio, Competitors
Booking Holdings Inc. 21.46 39.30 37.59 24.03 26.12
Delta Air Lines Inc. 8.81 10.57 8.37 7.23 56.26
McDonald’s Corp. 23.66 24.95 22.55 23.56 19.19
Starbucks Corp. 18.71 28.08 28.81 32.88 28.27
P/E Ratio, Sector
Travel & Leisure 19.10 25.43 22.81 20.22 25.62
P/E Ratio, Industry
Consumer Services 27.40 23.72 22.94 23.82 24.38

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Marriott International Inc.’s Annual Report.

2018 Calculations

3 EPS = Net income ÷ No. shares of common stock outstanding
= 1,907,000,000 ÷ 339,668,839 = 5.61

4 P/E ratio = Share price ÷ EPS
= 124.45 ÷ 5.61 = 22.17

Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Marriott International Inc.’s P/E ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Operating Profit (P/OP)

Marriott International Inc., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 339,668,839 357,437,289 383,561,428 253,481,935 276,542,350
Selected Financial Data (USD $)
Operating income (in millions) 2,366  2,359  1,368  1,350  1,159 
Operating profit per share3 6.97 6.60 3.57 5.33 4.19
Share price1, 2 124.45 141.29 87.99 64.94 83.10
Ratio
P/OP ratio4 17.87 21.41 24.67 12.19 19.83
Benchmarks
P/OP Ratio, Competitors
Booking Holdings Inc. 16.06 20.27 27.61 18.81 20.59
Delta Air Lines Inc. 6.59 6.18 5.26 4.19 16.81
McDonald’s Corp. 15.89 13.56 13.65 14.94 11.48
Starbucks Corp. 21.78 19.59 19.46 25.18 18.97
P/OP Ratio, Sector
Travel & Leisure 15.09 14.64 14.58 13.29 15.63
P/OP Ratio, Industry
Consumer Services 17.87 17.15 14.94 14.41 13.89

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Marriott International Inc.’s Annual Report.

2018 Calculations

3 Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,366,000,000 ÷ 339,668,839 = 6.97

4 P/OP ratio = Share price ÷ Operating profit per share
= 124.45 ÷ 6.97 = 17.87

Ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Marriott International Inc.’s P/OP ratio declined from 2016 to 2017 and from 2017 to 2018.

Price to Sales (P/S)

Marriott International Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 339,668,839 357,437,289 383,561,428 253,481,935 276,542,350
Selected Financial Data (USD $)
Revenues (in millions) 20,758  22,894  17,072  14,486  13,796 
Sales per share3 61.11 64.05 44.51 57.15 49.89
Share price1, 2 124.45 141.29 87.99 64.94 83.10
Ratio
P/S ratio4 2.04 2.21 1.98 1.14 1.67
Benchmarks
P/S Ratio, Competitors
Booking Holdings Inc. 5.91 7.25 7.47 6.65 7.49
Delta Air Lines Inc. 0.78 0.92 0.92 0.80 0.92
McDonald’s Corp. 6.67 5.68 4.29 4.20 3.33
Starbucks Corp. 3.42 3.62 3.81 4.73 3.55
P/S Ratio, Sector
Travel & Leisure 3.09 3.20 2.98 2.82 2.56
P/S Ratio, Industry
Consumer Services 1.47 1.47 1.30 1.28 1.17

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Marriott International Inc.’s Annual Report.

2018 Calculations

3 Sales per share = Revenues ÷ No. shares of common stock outstanding
= 20,758,000,000 ÷ 339,668,839 = 61.11

4 P/S ratio = Share price ÷ Sales per share
= 124.45 ÷ 61.11 = 2.04

Ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Marriott International Inc.’s P/S ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to Book Value (P/BV)

Marriott International Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 339,668,839 357,437,289 383,561,428 253,481,935 276,542,350
Selected Financial Data (USD $)
Shareholders’ equity (deficit) (in millions) 2,225  3,731  5,357  (3,590) (2,200)
Book value per share (BVPS)3 6.55 10.44 13.97 -14.16 -7.96
Share price1, 2 124.45 141.29 87.99 64.94 83.10
Ratio
P/BV ratio4 19.00 13.54 6.30
Benchmarks
P/BV Ratio, Competitors
Booking Holdings Inc. 9.77 8.17 8.17 6.97 7.38
Delta Air Lines Inc. 2.53 2.72 2.98 3.01 4.21
McDonald’s Corp. 15.06 7.10
Starbucks Corp. 72.30 14.86 13.79 15.59 11.09
P/BV Ratio, Sector
Travel & Leisure 19.76 12.57 10.83 10.63 8.20
P/BV Ratio, Industry
Consumer Services 6.04 6.03 5.14 5.26 4.41

Based on: 10-K (filing date: 2019-03-01), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-18), 10-K (filing date: 2015-02-19).

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Marriott International Inc.’s Annual Report.

2018 Calculations

3 BVPS = Shareholders’ equity (deficit) ÷ No. shares of common stock outstanding
= 2,225,000,000 ÷ 339,668,839 = 6.55

4 P/BV ratio = Share price ÷ BVPS
= 124.45 ÷ 6.55 = 19.00

Ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Marriott International Inc.’s P/BV ratio increased from 2016 to 2017 and from 2017 to 2018.