Mondelēz International Inc. (NASDAQ:MDLZ)

The valuation multiples for Mondelēz International Inc. exhibit a period of significant volatility characterized by cyclical fluctuations in earnings-based multiples and a gradual compression in revenue and book-value multiples. While the stock experienced periodic valuation spikes, particularly toward the end of calendar years, there is a discernible long-term downward trend in the multiples applied to sales and book value.

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates substantial volatility over the analyzed period. A sharp increase is observed from 21.13 in March 2022 to a peak of 33.07 in December 2022, followed by a contraction to 19.80 by September 2023. A second significant peak occurred in December 2025 at 31.07, before declining to 19.41 by September 2026. This pattern suggests periodic shifts in market sentiment or fluctuations in bottom-line profitability relative to the share price.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio closely mirrors the movements of the P/E ratio, indicating that valuation swings are driven by factors affecting both net income and operating performance. The ratio reached a high of 25.48 in March 2023 and hit a period low of 11.71 in December 2024. A subsequent recovery to 21.46 in December 2025 was followed by a decline to 14.49 by September 2026, reflecting a general trend of operating profit valuation compression in the latter half of the period.

Price to Sales (P/S) Ratio

A consistent long-term downward trend is evident in the P/S ratio. Starting at 3.03 in March 2022, the multiple gradually declined, breaking below the 2.50 threshold in June 2024 and reaching a low of 1.91 in March 2026. The ratio ended the period at 1.98, representing a significant contraction in the market's valuation of each dollar of revenue generated.

Price to Book Value (P/BV) Ratio

The P/BV ratio remained relatively more stable than the earnings multiples but still followed a general downward trajectory from its peak. After reaching a maximum of 3.65 in December 2023, the ratio experienced a decline, stabilizing between 2.92 and 2.99 throughout 2026. This indicates a moderation in the premium the market is willing to pay over the company's accounting book value.

Overall, the divergence between the volatile P/E and P/OP ratios and the steadily declining P/S and P/BV ratios suggests that while short-term market sentiment caused periodic price spikes, the fundamental valuation of the company's assets and revenue streams has undergone a steady correction over the multi-year period.

The valuation metrics for the period between March 31, 2022, and September 30, 2026, exhibit significant volatility, characterized by fluctuating price-to-earnings (P/E) ratios that reflect varying market sentiments and earnings performance.

Price-to-Earnings (P/E) Ratio Trends

A notable expansion of the P/E ratio occurred throughout 2022, peaking at 33.07 by December 31, 2022. Following this peak, the ratio underwent a general contraction during 2023, reaching a low of 19.80 in September 2023. Subsequent periods showed erratic movements, including a sharp decline to 16.11 in December 2024 and a significant spike to 31.07 in December 2025. The period concluded with a downward trend, with the ratio receding to 19.41 by September 30, 2026.

Earnings per Share (EPS) Influence

The P/E fluctuations are closely linked to the volatility of earnings per share. The peak valuation in late 2022 coincided with a decline in EPS to 1.99. Similarly, the valuation spike in December 2025 to 31.07 was driven by a contraction in EPS to 1.91. Conversely, periods of EPS growth, such as the increase to 3.68 in December 2023 and 3.22 in September 2026, generally corresponded with a compression of the P/E ratio, suggesting a normalization of valuation as fundamental earnings improved.

Share Price Correlation

Share price movements contributed to valuation shifts but did not always move in tandem with earnings. The highest share price of 76.87 was recorded in December 2023, a period where the P/E ratio remained relatively moderate at 20.87 due to strong EPS. The lowest share price of 57.43 in December 2024 resulted in the lowest P/E ratio of 16.11, indicating a period of relative undervaluation or market pessimism despite a relatively high EPS of 3.56.

Overall, the data indicates a pattern where the P/E ratio expands during earnings contractions and compresses during earnings recoveries, reflecting a cyclical relationship between market pricing and bottom-line performance.

The valuation analysis reveals a period of significant volatility in the Price to Operating Profit (P/OP) ratio, characterized by distinct cycles of expansion and contraction between March 2022 and September 2026.

Share Price Dynamics

The share price exhibited a general upward trajectory through 2023, peaking at 76.87 in December. This was followed by a period of instability throughout 2024, reaching a sequence low of 57.43 by the end of that year. From 2025 through September 2026, the price stabilized, fluctuating primarily between 58.54 and 69.71.

Operating Profit per Share Trends

A strong growth phase is observed from 2022 through early 2024, with operating profit per share reaching a peak of 5.01 in March 2024. A sharp contraction occurred in 2025, where figures dropped to a low of 2.77 by December. A subsequent recovery trend is evident in 2026, with operating profit per share rising to 4.32 by the third quarter.

P/OP Ratio Fluctuations

The P/OP ratio underwent an expansion phase in 2022 and early 2023, reaching a maximum of 25.48 in March 2023. A significant devaluation followed, resulting in the lowest recorded ratio of 11.71 in December 2024. The ratio experienced a correction and temporary stabilization between 18.47 and 21.46 during 2025, before trending downward to 14.49 by September 2026.

The analysis indicates a notable divergence in 2024, where the lowest P/OP ratio coincided with the highest operating profit per share, suggesting a market devaluation despite peak operational performance. In contrast, the valuation multiples normalized in 2025 as operating profits declined, indicating a realignment between the market price and the company's operating earnings.

An analysis of the valuation metrics from March 31, 2022, to September 30, 2026, reveals a sustained compression in the Price-to-Sales (P/S) ratio. This trend is characterized by a divergence between consistently growing revenue per share and a volatile, generally declining share price over the long term.

Sales per Share Performance

A consistent and linear upward trend is observed in sales per share, which rose from 21.13 US$ in March 2022 to 31.52 US$ by September 2026. This represents a steady expansion of the revenue generated per outstanding share throughout the entire period analyzed.

Share Price Volatility

The share price exhibited significant fluctuations, reaching a peak of 76.87 US$ in December 2023 before experiencing a notable decline to a period low of 57.43 US$ in December 2024. While a slight recovery occurred in 2025 and 2026, the price remained well below the 2023 peaks, ending at 62.53 US$ in September 2026.

Price-to-Sales (P/S) Ratio Trend

The P/S ratio transitioned from a high of 3.03 in March 2022 to 1.98 in September 2026. The ratio remained relatively stable between 2.50 and 3.00 through 2023, but entered a period of contraction starting in 2024. A critical threshold was crossed in late 2025, as the ratio fell below 2.00 and remained at that lower level through the end of the observed period.

Valuation Insight

The decline in the P/S ratio is primarily driven by the fact that sales growth per share outpaced the growth of the share price. The market's willingness to pay a premium for each dollar of sales has diminished, shifting from a multiple of approximately 3.0x to just under 2.0x, suggesting a valuation correction or a change in market sentiment regarding revenue multiples.

The Price to Book Value (P/BV) ratio for the period between March 2022 and September 2026 reflects a pattern of moderate volatility, closely mirroring fluctuations in the equity share price while the underlying book value remained relatively constant.

Share Price Performance

The share price experienced a period of growth starting from 64.04 US$ in March 2022, reaching a peak of 76.87 US$ in December 2023. This upward trajectory was followed by a significant correction, with the price dropping to a low of 57.43 US$ by December 2024. Toward the end of the period, the price demonstrated a partial recovery and stabilization, ending at 62.53 US$ in September 2026.

Book Value Per Share (BVPS) Stability

BVPS demonstrated minimal variance throughout the analyzed timeframe. After an initial dip to 19.51 US$ in September 2022, the value generally trended upward to a peak of 21.23 US$ in March 2024. For the remainder of the period, BVPS remained stable, fluctuating narrowly between 19.91 US$ and 21.02 US$, indicating a consistent net asset base per share.

P/BV Ratio Trends

The P/BV ratio expanded in tandem with the share price, rising from 3.15 in March 2022 to a maximum of 3.65 in December 2023. A notable contraction occurred in late 2024, where the ratio fell to its lowest point of 2.76. From early 2025 through September 2026, the ratio normalized and settled into a narrower range, eventually closing at 2.97.

The correlation between the share price and the P/BV ratio is high, as the stability of the book value ensured that valuation multiples were almost exclusively sensitive to market pricing changes rather than fundamental shifts in the equity base.