Common Stock Valuation Ratios (Price Multiples)
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).
Current Valuation Ratios
Monolithic Power Systems Inc., current price multiples
| Monolithic Power Systems Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Current share price (P) | $627.40 | |||||||||||||||||
| No. shares of common stock outstanding | 47,880,000 | |||||||||||||||||
| Growth rate (g) | 18.24% | |||||||||||||||||
| Earnings per share (EPS) | $37.32 | |||||||||||||||||
| Next year expected EPS | $44.12 | |||||||||||||||||
| Operating profit per share | $11.26 | |||||||||||||||||
| Sales per share | $46.10 | |||||||||||||||||
| Book value per share (BVPS) | $65.70 | |||||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||||
| Price to earnings (P/E) | 16.81 | 194.61 | 83.58 | 42.78 | 66.40 | — | 39.38 | 39.56 | 75.05 | 11.69 | 42.34 | 33.46 | 52.02 | 215.63 | 78.03 | |||
| Price to next year expected earnings | 14.22 | 185.93 | 82.27 | 31.60 | 66.95 | — | 23.59 | 26.90 | 77.91 | 10.58 | 28.23 | 25.46 | 46.78 | 196.29 | 62.40 | |||
| Price-earnings-growth (PEG) | 0.92 | 41.69 | 52.76 | 1.21 | — | — | 0.59 | 0.84 | — | 1.12 | 0.85 | 1.07 | 4.65 | 21.88 | 3.11 | |||
| Price to operating profit (P/OP) | 55.70 | 228.38 | 64.62 | 36.12 | 60.26 | — | 33.61 | 35.05 | 151.47 | 9.99 | 38.99 | 15.01 | 43.19 | 149.17 | 60.39 | |||
| Price to sales (P/S) | 13.61 | 24.36 | 17.20 | 10.55 | 24.04 | 8.30 | 14.01 | 12.37 | 24.45 | 7.45 | 23.54 | 4.19 | 14.71 | 31.09 | 15.98 | |||
| Price to book value (P/BV) | 9.55 | 13.39 | 5.60 | 14.66 | 18.89 | 3.84 | 29.96 | 23.05 | 14.00 | 7.18 | 32.32 | 8.74 | 15.99 | 24.06 | 22.49 | |||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Monolithic Power Systems Inc., historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The valuation multiples for the entity exhibit a general trend of contraction over the five-year period from 2020 to 2024, characterized by notable volatility and a significant downward adjustment in the final year. While a temporary recovery in multiples was observed in 2023, the 2024 figures represent the lowest valuation levels across all measured metrics.
- Price to Earnings (P/E) Ratio
- The P/E ratio demonstrates the most extreme variance, starting at 107.98 in 2020 and declining to 15.51 by the end of 2024. A significant contraction occurred in 2022, followed by a sharp rebound to 81.98 in 2023, before a precipitous drop in 2024, suggesting a substantial shift in the market's valuation of earnings.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio follows a trajectory similar to the P/E ratio, peaking at 111.71 in 2020 and ending at 51.38 in 2024. The ratio experienced a steep decline through 2022, a moderate recovery in 2023, and a subsequent decrease in 2024.
- Price to Sales (P/S) Ratio
- The P/S ratio shifted from a high of 21.02 in 2020 to a period low of 12.56 in 2024. This overall downward trend indicates a compression in the revenue multiple, despite a temporary increase to 19.24 observed in 2023.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio decreased from 18.36 in 2020 to 8.81 in 2024. The ratio showed a steady decline from 2020 to 2022, a partial recovery in 2023, and a sharp contraction in 2024, reflecting a reduced premium over the company's book value.
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Price to Earnings (P/E)
Monolithic Power Systems Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 47,866,000 | 48,661,000 | 47,305,000 | 46,509,000 | 45,621,000 | |
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | 1,786,700) | 427,374) | 437,672) | 242,023) | 164,375) | |
| Earnings per share (EPS)2 | 37.33 | 8.78 | 9.25 | 5.20 | 3.60 | |
| Share price1, 3 | 578.92 | 720.04 | 483.06 | 461.44 | 389.05 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 15.51 | 81.98 | 52.21 | 88.67 | 107.98 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 110.61 | 317.27 | 96.16 | 45.54 | — | |
| Analog Devices Inc. | 66.48 | 27.14 | 31.21 | 68.31 | 41.43 | |
| Applied Materials Inc. | 19.20 | 19.63 | 13.55 | 22.05 | 22.31 | |
| Broadcom Inc. | 175.56 | 36.78 | 20.70 | 40.73 | 66.38 | |
| Intel Corp. | — | 109.27 | 14.54 | 9.85 | — | |
| KLA Corp. | 34.24 | 20.04 | 16.89 | 25.97 | — | |
| Lam Research Corp. | 27.05 | 19.26 | 13.77 | 21.03 | — | |
| Marvell Technology Inc. | — | — | — | — | — | |
| Micron Technology Inc. | 145.72 | — | 6.62 | 13.38 | — | |
| NVIDIA Corp. | 56.68 | 131.70 | 68.08 | 78.54 | — | |
| Qualcomm Inc. | 18.95 | 17.07 | 9.75 | 17.15 | 28.06 | |
| Texas Instruments Inc. | 34.72 | 22.24 | 18.88 | 20.38 | — | |
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 81.32 | 49.31 | 23.72 | 24.87 | — | |
| P/E Ratio, Industry | ||||||
| Information Technology | 45.43 | 36.13 | 26.99 | 29.70 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 1,786,700,000 ÷ 47,866,000 = 37.33
3 Closing price as at the filing date of Monolithic Power Systems Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 578.92 ÷ 37.33 = 15.51
5 Click competitor name to see calculations.
The financial trajectory between 2020 and 2024 is characterized by a significant transition in valuation dynamics, moving from a high-growth premium multiple to a substantially compressed price-to-earnings ratio, driven primarily by an exponential increase in profitability.
- Earnings Per Share (EPS) Trends
- A consistent and aggressive increase in EPS is observed, growing from 3.60 in 2020 to 37.33 by the end of 2024. The growth was steady through 2022, followed by a marginal contraction in 2023 to 8.78, before experiencing a massive surge in 2024.
- Share Price Movement
- The share price exhibited a general upward trend for the majority of the period, rising from 389.05 in 2020 to a peak of 720.04 in 2023. A reversal occurred in 2024, with the price declining to 578.92.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio showed high volatility, starting at 107.98 in 2020 and decreasing to 52.21 by 2022. A temporary spike to 81.98 occurred in 2023, coinciding with a peak in share price and a slight dip in earnings. By 2024, the ratio underwent a sharp contraction to 15.51, resulting from the combination of a lower share price and a dramatic increase in earnings per share.
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Price to Operating Profit (P/OP)
Monolithic Power Systems Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 47,866,000 | 48,661,000 | 47,305,000 | 46,509,000 | 45,621,000 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in thousands) | 539,358) | 481,736) | 526,785) | 262,417) | 158,882) | |
| Operating profit per share2 | 11.27 | 9.90 | 11.14 | 5.64 | 3.48 | |
| Share price1, 3 | 578.92 | 720.04 | 483.06 | 461.44 | 389.05 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 51.38 | 72.73 | 43.38 | 81.78 | 111.71 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 95.53 | 675.69 | 100.42 | 39.48 | — | |
| Analog Devices Inc. | 53.48 | 23.53 | 26.16 | 56.12 | 33.76 | |
| Applied Materials Inc. | 17.52 | 17.58 | 11.35 | 18.85 | 18.50 | |
| Broadcom Inc. | 76.87 | 31.96 | 16.33 | 30.78 | 44.04 | |
| Intel Corp. | — | 1,984.43 | 49.91 | 10.06 | — | |
| KLA Corp. | 28.26 | 16.99 | 15.36 | 21.69 | — | |
| Lam Research Corp. | 24.29 | 16.79 | 11.79 | 18.34 | — | |
| Marvell Technology Inc. | — | 147.29 | — | — | — | |
| Micron Technology Inc. | 86.94 | — | 5.93 | 12.48 | — | |
| NVIDIA Corp. | 51.16 | 136.19 | 66.12 | 75.08 | — | |
| Qualcomm Inc. | 19.08 | 15.85 | 7.95 | 15.84 | 23.32 | |
| Texas Instruments Inc. | 30.49 | 19.75 | 16.29 | 17.67 | — | |
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 56.26 | 45.10 | 22.05 | 22.59 | — | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 35.16 | 30.04 | 22.89 | 26.21 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 539,358,000 ÷ 47,866,000 = 11.27
3 Closing price as at the filing date of Monolithic Power Systems Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 578.92 ÷ 11.27 = 51.38
5 Click competitor name to see calculations.
The analysis of the Price to Operating Profit (P/OP) ratio between 2020 and 2024 reveals a period of significant volatility in valuation multiples, driven by a divergence between share price movements and fundamental operating performance.
- Share Price Dynamics
- A general upward trajectory was observed from 2020 through 2023, with the share price rising from 389.05 USD to a peak of 720.04 USD. However, 2024 saw a correction, with the price declining to 578.92 USD.
- Operating Profitability Trends
- Operating profit per share exhibited strong growth over the five-year period. From a baseline of 3.48 USD in 2020, the figure increased consistently to reach 11.14 USD in 2022. Despite a slight contraction to 9.90 USD in 2023, the metric recovered to a period high of 11.27 USD by the end of 2024, indicating a substantial expansion in the company's operational efficiency and earning power.
- P/OP Valuation Analysis
- The P/OP ratio experienced a sharp contraction between 2020 and 2022, falling from 111.71 to 43.38. This decline indicates that operating profit grew at a much faster rate than the share price during this window, leading to a more grounded valuation. A significant spike occurred in 2023, where the ratio rose to 72.73, driven by a surge in the share price that outpaced a slight dip in operating profit. By 2024, the ratio moderated to 51.38, reflecting a realignment as the share price decreased while operating profit per share reached its peak.
Overall, the data indicates that while the company has significantly scaled its operational profitability, the market valuation has fluctuated aggressively, moving from an extremely high multiple in 2020 toward a more moderate, though still elevated, valuation by 2024.
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Price to Sales (P/S)
Monolithic Power Systems Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 47,866,000 | 48,661,000 | 47,305,000 | 46,509,000 | 45,621,000 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | 2,207,100) | 1,821,072) | 1,794,148) | 1,207,798) | 844,452) | |
| Sales per share2 | 46.11 | 37.42 | 37.93 | 25.97 | 18.51 | |
| Share price1, 3 | 578.92 | 720.04 | 483.06 | 461.44 | 389.05 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 12.56 | 19.24 | 12.74 | 17.77 | 21.02 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 7.04 | 11.95 | 5.38 | 8.76 | — | |
| Analog Devices Inc. | 11.53 | 7.31 | 7.14 | 12.98 | 9.03 | |
| Applied Materials Inc. | 5.07 | 5.08 | 3.43 | 5.63 | 4.69 | |
| Broadcom Inc. | 20.07 | 14.46 | 7.00 | 9.55 | 7.40 | |
| Intel Corp. | 1.58 | 3.40 | 1.85 | 2.48 | — | |
| KLA Corp. | 9.64 | 6.47 | 6.09 | 7.80 | — | |
| Lam Research Corp. | 6.95 | 4.99 | 3.68 | 5.62 | — | |
| Marvell Technology Inc. | 10.63 | 5.92 | 12.40 | 10.92 | — | |
| Micron Technology Inc. | 4.51 | 4.94 | 1.87 | 2.83 | — | |
| NVIDIA Corp. | 27.69 | 21.33 | 24.67 | 20.41 | — | |
| Qualcomm Inc. | 4.93 | 3.45 | 2.85 | 4.62 | 6.20 | |
| Texas Instruments Inc. | 10.65 | 8.26 | 8.25 | 8.63 | — | |
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 11.73 | 8.21 | 5.92 | 6.30 | — | |
| P/S Ratio, Industry | ||||||
| Information Technology | 9.30 | 7.31 | 6.01 | 6.97 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 2,207,100,000 ÷ 47,866,000 = 46.11
3 Closing price as at the filing date of Monolithic Power Systems Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 578.92 ÷ 46.11 = 12.56
5 Click competitor name to see calculations.
The analysis of valuation multiples between 2020 and 2024 reveals a volatile relationship between share price appreciation and revenue growth per share, characterized by periods of valuation expansion and contraction.
- Price-to-Sales (P/S) Ratio Trajectory
- The P/S ratio exhibits a non-linear trend, starting at 21.02 in 2020 and concluding at 12.56 in 2024. A consistent contraction is observed from 2020 through 2022, where the ratio declined to 12.74. This downward trend indicates that the growth in sales per share, which rose from 18.51 to 37.93 during this interval, occurred at a faster rate than the increase in share price.
- Valuation Divergence in 2023
- A significant spike in the P/S multiple to 19.24 occurred in 2023. This expansion was driven by a substantial increase in the share price to 720.04, while sales per share remained nearly stagnant at 37.42. This suggests a period where market valuation was driven by factors other than immediate revenue growth, resulting in a higher premium per dollar of sales.
- Fundamental Alignment in 2024
- By the end of 2024, the P/S ratio reverted to 12.56, the lowest level in the analyzed period. This normalization is the result of a dual effect: a reduction in the share price to 578.92 and a simultaneous increase in sales per share to 46.11. The convergence of these factors indicates a valuation that is more closely aligned with the underlying revenue performance compared to the previous year.
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Price to Book Value (P/BV)
Monolithic Power Systems Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 47,866,000 | 48,661,000 | 47,305,000 | 46,509,000 | 45,621,000 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Book value per share (BVPS)2 | 65.72 | 42.13 | 35.27 | 26.75 | 21.19 | |
| Share price1, 3 | 578.92 | 720.04 | 483.06 | 461.44 | 389.05 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 8.81 | 17.09 | 13.69 | 17.25 | 18.36 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 3.15 | 4.85 | 2.32 | 19.21 | — | |
| Analog Devices Inc. | 3.09 | 2.53 | 2.35 | 2.50 | 4.22 | |
| Applied Materials Inc. | 7.25 | 8.23 | 7.25 | 10.60 | 7.63 | |
| Broadcom Inc. | 15.29 | 21.59 | 10.23 | 10.50 | 7.40 | |
| Intel Corp. | 0.85 | 1.75 | 1.15 | 2.05 | — | |
| KLA Corp. | 28.08 | 23.25 | 40.04 | 15.98 | — | |
| Lam Research Corp. | 12.13 | 10.58 | 10.10 | 13.64 | — | |
| Marvell Technology Inc. | 3.95 | 2.24 | 3.52 | 3.84 | — | |
| Micron Technology Inc. | 2.51 | 1.74 | 1.15 | 1.79 | — | |
| NVIDIA Corp. | 39.25 | 26.03 | 24.95 | 20.14 | — | |
| Qualcomm Inc. | 7.31 | 5.72 | 7.00 | 15.59 | 24.00 | |
| Texas Instruments Inc. | 9.86 | 8.57 | 11.33 | 11.87 | — | |
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 9.07 | 6.26 | 5.10 | 6.17 | — | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 13.09 | 11.29 | 10.25 | 12.35 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 3,145,767,000 ÷ 47,866,000 = 65.72
3 Closing price as at the filing date of Monolithic Power Systems Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 578.92 ÷ 65.72 = 8.81
5 Click competitor name to see calculations.
The valuation metrics from 2020 through 2024 demonstrate a notable trend of P/BV compression, despite a significant long-term increase in the underlying book value of the equity.
- Book Value Per Share (BVPS) Expansion
- A consistent upward trajectory in BVPS is observed, rising from 21.19 US$ in 2020 to 65.72 US$ by 2024. The most pronounced growth occurred between 2023 and 2024, where BVPS increased by approximately 56%, indicating a substantial accumulation of net assets over the period.
- Share Price Dynamics
- The share price experienced a general upward trend from 2020, reaching a peak of 720.04 US$ in 2023. A subsequent price correction is noted by the end of 2024, with the price declining to 578.92 US$.
- P/BV Ratio Analysis
- The P/BV ratio remained elevated between 13.69 and 18.36 from 2020 to 2023, reflecting a high market premium. However, a significant contraction occurred in 2024, with the ratio dropping to 8.81. This sharp decline is attributable to the combined effect of a decreasing share price and a rapidly increasing book value per share, resulting in a lower valuation multiple relative to the company's accounting equity.
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