Price to Operating Profit (P/OP)
since 2005
Calculation
Monster Beverage Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 29, 2024 | 31.49 | = | 59.10 | ÷ | 1.88 | 1.88 | = | 1,953,355 | ÷ | 1,040,636,235 | |
| Mar 1, 2023 | 32.70 | = | 49.60 | ÷ | 1.52 | 1.52 | = | 1,584,721 | ÷ | 1,044,818,716 | |
| Feb 28, 2022 | 24.86 | = | 42.20 | ÷ | 1.70 | 1.70 | = | 1,797,467 | ÷ | 1,058,717,720 | |
| Mar 1, 2021 | 28.32 | = | 43.78 | ÷ | 1.55 | 1.55 | = | 1,633,153 | ÷ | 1,056,274,072 | |
| Feb 28, 2020 | 23.89 | = | 31.21 | ÷ | 1.31 | 1.31 | = | 1,402,939 | ÷ | 1,073,792,284 | |
| Feb 28, 2019 | 27.01 | = | 31.92 | ÷ | 1.18 | 1.18 | = | 1,283,619 | ÷ | 1,086,296,338 | |
| Mar 1, 2018 | 25.62 | = | 27.11 | ÷ | 1.06 | 1.06 | = | 1,198,787 | ÷ | 1,132,805,496 | |
| Mar 1, 2017 | 21.94 | = | 21.01 | ÷ | 0.96 | 0.96 | = | 1,085,338 | ÷ | 1,133,238,686 | |
| Feb 29, 2016 | 28.50 | = | 20.92 | ÷ | 0.73 | 0.73 | = | 893,653 | ÷ | 1,217,519,022 | |
| Mar 2, 2015 | 32.12 | = | 23.54 | ÷ | 0.73 | 0.73 | = | 747,505 | ÷ | 1,020,097,932 | |
| Mar 3, 2014 | 21.15 | = | 12.10 | ÷ | 0.57 | 0.57 | = | 572,916 | ÷ | 1,001,262,984 | |
| Mar 1, 2013 | 15.23 | = | 8.44 | ÷ | 0.55 | 0.55 | = | 550,623 | ÷ | 993,275,160 | |
| Feb 29, 2012 | 21.84 | = | 9.53 | ÷ | 0.44 | 0.44 | = | 456,423 | ÷ | 1,045,856,052 | |
| Mar 1, 2011 | 14.43 | = | 4.70 | ÷ | 0.33 | 0.33 | = | 347,814 | ÷ | 1,068,063,168 | |
| Mar 1, 2010 | 10.95 | = | 3.49 | ÷ | 0.32 | 0.32 | = | 337,309 | ÷ | 1,057,928,316 | |
| Mar 2, 2009 | 18.24 | = | 2.75 | ÷ | 0.15 | 0.15 | = | 163,591 | ÷ | 1,084,823,592 | |
| Feb 29, 2008 | 16.77 | = | 3.46 | ÷ | 0.21 | 0.21 | = | 230,986 | ÷ | 1,119,513,492 | |
| Jun 6, 2007 | 22.42 | = | 3.29 | ÷ | 0.15 | 0.15 | = | 158,579 | ÷ | 1,080,709,488 | |
| Mar 15, 2006 | 24.43 | = | 2.36 | ÷ | 0.10 | 0.10 | = | 103,443 | ÷ | 1,070,736,288 |
Based on: 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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
The financial trajectory from 2006 to 2024 is characterized by a consistent and significant expansion in both equity valuation and operational efficiency. There is a clear positive correlation between the growth in share price and the increase in operating profit per share over the nineteen-year period.
- Share Price Appreciation
- A substantial upward trend is observed, with the share price rising from 2.36 USD in March 2006 to 59.10 USD by February 2024. This represents a significant increase in market capitalization over the analyzed timeframe.
- Operating Profit per Share Growth
- Operational profitability has demonstrated steady growth, increasing from 0.10 USD in 2006 to 1.88 USD in 2024. The growth in profit per share has been relatively linear, supporting the overall rise in share price.
- Price to Operating Profit (P/OP) Dynamics
- The P/OP ratio has exhibited notable volatility and cyclicality. After an initial decline to a period low of 10.95 in 2010, the ratio experienced a sharp ascent, peaking at 32.12 in 2015. In the subsequent decade, the ratio has largely stabilized within a higher range, fluctuating between a low of 21.94 in 2017 and a high of 32.70 in 2023.
The shift in the P/OP ratio suggests a transition in market valuation. The early period (2006–2010) was marked by a compression of the multiple, whereas the period from 2011 onward reflects a higher valuation premium. The fact that the P/OP ratio remains elevated in the most recent years, despite the significant increase in the absolute value of operating profit, indicates sustained investor confidence in the company's future earnings potential.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Monster Beverage Corp., P/OP, long-term trends, comparison to competitors
| Monster Beverage Corp. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Feb 29, 2024 | 31.49 | 23.14 | 18.81 | 19.23 | 11.96 |
| Mar 1, 2023 | 32.70 | 23.72 | 25.43 | 20.67 | 12.96 |
| Feb 28, 2022 | 24.86 | 26.19 | 20.00 | 20.87 | 12.90 |
| Mar 1, 2021 | 28.32 | 24.03 | 20.60 | 18.47 | 11.43 |
| Feb 28, 2020 | 23.89 | 24.95 | 21.87 | 19.78 | 12.92 |
| Feb 28, 2019 | 27.01 | 22.54 | 20.45 | 16.10 | 10.48 |
| Mar 1, 2018 | 25.62 | 25.05 | 17.88 | 15.15 | 13.91 |
| Mar 1, 2017 | 21.94 | 20.80 | 26.97 | 15.57 | 14.71 |
| Feb 29, 2016 | 28.50 | 21.91 | 7.02 | 16.77 | 13.31 |
| Mar 2, 2015 | 32.12 | 18.91 | 18.81 | 15.51 | 10.98 |
| Mar 3, 2014 | 21.15 | 16.40 | 14.48 | 12.25 | 9.26 |
| Mar 1, 2013 | 15.23 | 15.90 | 12.95 | 12.76 | 11.10 |
| Feb 29, 2012 | 21.84 | 15.42 | 10.07 | 10.32 | 10.71 |
| Mar 1, 2011 | 14.43 | 17.36 | 9.83 | 12.07 | 9.99 |
| Mar 1, 2010 | 10.95 | 14.76 | 7.72 | 12.18 | 9.18 |
| Mar 2, 2009 | 18.24 | 11.26 | 8.77 | 11.71 | 6.69 |
| Feb 29, 2008 | 16.77 | 19.05 | 11.16 | 16.02 | — |
| Jun 6, 2007 | 22.42 | 17.46 | 11.73 | 16.43 | — |
| Mar 15, 2006 | 24.43 | 16.34 | 10.73 | 16.65 | — |
Based on: 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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).