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
Monster Beverage Corp., current price multiples
| Monster Beverage Corp. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | Food, Beverage & Tobacco | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $54.67 | |||||||||
| No. shares of common stock outstanding | 1,041,728,228 | |||||||||
| Growth rate (g) | 22.27% | |||||||||
| Earnings per share (EPS) | $1.57 | |||||||||
| Next year expected EPS | $1.91 | |||||||||
| Operating profit per share | $1.88 | |||||||||
| Sales per share | $6.85 | |||||||||
| Book value per share (BVPS) | $7.90 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 34.92 | 31.40 | 34.10 | 23.37 | 27.18 | 30.59 | 43.06 | |||
| Price to next year expected earnings | 28.56 | 28.41 | 32.41 | 20.85 | — | 27.21 | 38.53 | |||
| Price-earnings-growth (PEG) | 1.57 | 2.99 | 6.57 | 1.93 | — | 2.46 | 3.67 | |||
| Price to operating profit (P/OP) | 29.16 | 29.91 | 23.55 | 16.75 | 20.71 | 24.69 | 32.07 | |||
| Price to sales (P/S) | 7.98 | 8.58 | 2.17 | 2.05 | 7.59 | 4.78 | 2.34 | |||
| Price to book value (P/BV) | 6.92 | 12.79 | 3.23 | 9.44 | — | 16.18 | 13.17 | |||
Based on: 10-K (reporting date: 2023-12-31).
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)
Monster Beverage Corp., historical price multiples
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).
The valuation multiples for the period from 2019 through 2023 reflect an overall expansion in market pricing relative to fundamental performance metrics, with a notable peak in valuation premiums occurring in 2022.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both ratios demonstrate a synchronized trajectory, characterized by a steady increase from 2019 and a significant surge in 2022. The P/E ratio reached a five-year high of 43.49 in 2022 before moderating to 37.71 in 2023. Similarly, the P/OP ratio rose from 23.89 in 2019 to a peak of 32.70 in 2022, remaining elevated at 31.49 in 2023 compared to the 2019-2021 average.
- Price to Sales (P/S)
- The P/S ratio experienced an isolated peak of 10.06 in 2020, followed by a correction to 8.06 in 2021. For the subsequent years, the ratio stabilized, ending 2023 at 8.61, which indicates a consistent market valuation of revenue generation over the latter half of the analyzed period.
- Price to Book Value (P/BV)
- Valuation relative to book value peaked in 2020 at 8.96 before declining to a period low of 6.80 in 2021. A gradual recovery trend was observed thereafter, with the ratio increasing incrementally to 7.38 in 2022 and 7.47 in 2023.
Comparative analysis indicates a divergence in timing between asset-based and profit-based multiples. While the P/S and P/BV ratios peaked in 2020, the P/E and P/OP ratios peaked in 2022, suggesting a period of increased market optimism regarding future profitability or a temporary compression of earnings relative to the stock price during 2022.
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Price to Earnings (P/E)
Monster Beverage Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,040,636,235 | 1,044,818,716 | 1,058,717,720 | 1,056,274,072 | 1,073,792,284 | |
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | 1,630,988) | 1,191,624) | 1,377,475) | 1,409,594) | 1,107,835) | |
| Earnings per share (EPS)2 | 1.57 | 1.14 | 1.30 | 1.33 | 1.03 | |
| Share price1, 3 | 59.10 | 49.60 | 42.20 | 43.78 | 31.21 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 37.71 | 43.49 | 32.43 | 32.81 | 30.25 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 24.43 | 27.12 | 27.63 | — | — | |
| Mondelēz International Inc. | 20.87 | 33.07 | 21.64 | — | — | |
| PepsiCo Inc. | 25.40 | 26.71 | 30.58 | — | — | |
| Philip Morris International Inc. | 17.69 | 17.54 | 18.37 | — | — | |
| P/E Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 22.54 | 24.66 | 24.78 | — | — | |
| P/E Ratio, Industry | ||||||
| Consumer Staples | 26.62 | 25.35 | 26.07 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 1,630,988,000 ÷ 1,040,636,235 = 1.57
3 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 59.10 ÷ 1.57 = 37.71
5 Click competitor name to see calculations.
Between 2019 and 2023, a consistent upward trend in share price is observed, rising from 31.21 US$ to 59.10 US$. This trajectory indicates a significant expansion in market valuation over the five-year period, although the rate of increase varied annually.
- Earnings per Share (EPS) Dynamics
- Earnings demonstrated a non-linear growth pattern. After increasing from 1.03 US$ in 2019 to a peak of 1.33 US$ in 2020, EPS remained relatively flat in 2021 and experienced a contraction to 1.14 US$ in 2022. A strong recovery followed in 2023, with EPS reaching its highest point in the period at 1.57 US$.
- Price-to-Earnings (P/E) Ratio Volatility
- The P/E ratio remained stable in the low 30s from 2019 through 2021. A sharp valuation expansion occurred in 2022, with the ratio peaking at 43.49. This peak was the result of share prices continuing to rise while earnings per share declined. In 2023, the ratio moderated to 37.71, as the growth in earnings began to offset the increase in share price.
- Valuation Synthesis
- The data indicates a shift in valuation multiples over time. While the company traded at a multiple of approximately 30x to 32x in the early part of the period, the market shifted to a higher valuation baseline following 2022. The compression of the P/E ratio in 2023, occurring alongside record EPS, suggests that the recent share price appreciation is more closely supported by fundamental earnings growth than in the preceding year.
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Price to Operating Profit (P/OP)
Monster Beverage Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,040,636,235 | 1,044,818,716 | 1,058,717,720 | 1,056,274,072 | 1,073,792,284 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in thousands) | 1,953,355) | 1,584,721) | 1,797,467) | 1,633,153) | 1,402,939) | |
| Operating profit per share2 | 1.88 | 1.52 | 1.70 | 1.55 | 1.31 | |
| Share price1, 3 | 59.10 | 49.60 | 42.20 | 43.78 | 31.21 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 31.49 | 32.70 | 24.86 | 28.32 | 23.89 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 23.14 | 23.72 | 26.19 | — | — | |
| Mondelēz International Inc. | 18.81 | 25.43 | 20.00 | — | — | |
| PepsiCo Inc. | 19.23 | 20.67 | 20.87 | — | — | |
| Philip Morris International Inc. | 11.96 | 12.96 | 12.90 | — | — | |
| P/OP Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 18.19 | 19.51 | 19.52 | — | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Staples | 19.82 | 18.28 | 19.01 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 1,953,355,000 ÷ 1,040,636,235 = 1.88
3 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 59.10 ÷ 1.88 = 31.49
5 Click competitor name to see calculations.
The five-year period between 2019 and 2023 is characterized by an overall expansion in the Price to Operating Profit (P/OP) ratio and a consistent upward trajectory in share price. While operating profitability exhibited some volatility, the market valuation shifted upward, indicating a general increase in the multiple investors are willing to pay relative to the company's operating earnings.
- Share Price Performance
- The share price demonstrated steady growth, rising from 31.21 US$ in 2019 to 59.10 US$ in 2023. Aside from a marginal decline in 2021, the price trend remained positive throughout the analyzed timeframe.
- Operating Profit per Share Trends
- Operating profit per share increased from 1.31 US$ in 2019 to 1.88 US$ in 2023. A notable deviation occurred in 2022, when operating profit per share decreased to 1.52 US$ from 1.70 US$ the previous year, before recovering to its period high in 2023.
- P/OP Ratio Dynamics
- The P/OP ratio grew from 23.89 in 2019 to 31.49 in 2023. The ratio reached its peak of 32.70 in 2022; this spike is particularly significant as it coincided with a decrease in operating profit per share, indicating a valuation expansion driven primarily by share price appreciation rather than fundamental operating growth during that year. The slight moderation to 31.49 in 2023 occurred as operating profits grew more rapidly than the share price.
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Price to Sales (P/S)
Monster Beverage Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,040,636,235 | 1,044,818,716 | 1,058,717,720 | 1,056,274,072 | 1,073,792,284 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in thousands) | 7,140,027) | 6,311,050) | 5,541,352) | 4,598,638) | 4,200,819) | |
| Sales per share2 | 6.86 | 6.04 | 5.23 | 4.35 | 3.91 | |
| Share price1, 3 | 59.10 | 49.60 | 42.20 | 43.78 | 31.21 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 8.61 | 8.21 | 8.06 | 10.06 | 7.98 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 5.72 | 6.02 | 6.99 | — | — | |
| Mondelēz International Inc. | 2.87 | 2.85 | 3.24 | — | — | |
| PepsiCo Inc. | 2.52 | 2.75 | 2.93 | — | — | |
| Philip Morris International Inc. | 3.93 | 5.00 | 5.33 | — | — | |
| P/S Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 3.52 | 3.87 | 4.28 | — | — | |
| P/S Ratio, Industry | ||||||
| Consumer Staples | 1.45 | 1.54 | 1.61 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 7,140,027,000 ÷ 1,040,636,235 = 6.86
3 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 59.10 ÷ 6.86 = 8.61
5 Click competitor name to see calculations.
The analysis of valuation multiples from 2019 to 2023 reveals a period of sustained revenue growth per share accompanied by fluctuating market valuations.
- Sales per Share Performance
- A consistent upward trajectory is observed in sales per share, which increased from 3.91 USD in 2019 to 6.86 USD in 2023. This represents uninterrupted year-over-year growth, indicating a steady expansion of top-line revenue on a per-share basis throughout the five-year period.
- Share Price Trends
- The share price exhibited a general increase, rising from 31.21 USD in 2019 to 59.10 USD in 2023. Although a marginal decline was noted between 2020 and 2021, the overall trend remains positive, with the most significant price appreciation occurring between 2022 and 2023.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio experienced a notable peak in 2020 at 10.06, representing the highest valuation multiple in the period. A significant correction followed in 2021, where the ratio dropped to 8.06. From 2021 through 2023, the multiple entered a phase of gradual expansion, climbing to 8.21 and eventually 8.61. This suggests that while the 2020 spike was an outlier, the market has maintained a valuation baseline generally between 8.0 and 8.6 times sales over the subsequent years.
The alignment of rising sales per share with a recovering share price indicates that the increase in market value is supported by fundamental revenue growth. The stabilization of the P/S ratio following the 2020 peak suggests a normalization of investor expectations relative to the company's sales performance.
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Price to Book Value (P/BV)
Monster Beverage Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,040,636,235 | 1,044,818,716 | 1,058,717,720 | 1,056,274,072 | 1,073,792,284 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | 8,228,744) | 7,025,041) | 6,566,951) | 5,160,860) | 4,171,281) | |
| Book value per share (BVPS)2 | 7.91 | 6.72 | 6.20 | 4.89 | 3.88 | |
| Share price1, 3 | 59.10 | 49.60 | 42.20 | 43.78 | 31.21 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 7.47 | 7.38 | 6.80 | 8.96 | 8.03 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Coca-Cola Co. | 10.09 | 10.73 | 11.74 | — | — | |
| Mondelēz International Inc. | 3.65 | 3.34 | 3.29 | — | — | |
| PepsiCo Inc. | 12.45 | 13.88 | 14.52 | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Food, Beverage & Tobacco | 11.92 | 12.59 | 13.34 | — | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Staples | 8.14 | 8.11 | 8.15 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 8,228,744,000 ÷ 1,040,636,235 = 7.91
3 Closing price as at the filing date of Monster Beverage Corp. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 59.10 ÷ 7.91 = 7.47
5 Click competitor name to see calculations.
The five-year period from 2019 to 2023 is characterized by a sustained increase in both market share price and book value per share, although the valuation multiple has exhibited moderate volatility.
- Share Price Performance
- The share price followed a general upward trajectory, rising from 31.21 US$ in 2019 to 59.10 US$ by the end of 2023. While there was a slight contraction between 2020 and 2021, the overall trend indicates significant growth in market valuation over the observed horizon.
- Book Value per Share (BVPS) Trends
- A consistent and linear increase in BVPS is observed, growing from 3.88 US$ in 2019 to 7.91 US$ in 2023. This steady growth indicates a continuous accumulation of net assets relative to the number of shares outstanding.
- Price to Book Value (P/BV) Ratio Interpretation
- The P/BV ratio peaked in 2020 at 8.96 before experiencing a notable decline to 6.80 in 2021. Since 2021, the ratio has undergone a gradual recovery, reaching 7.47 by the end of 2023. The fact that the ratio consistently remains well above 6.0 suggests that the market values the company at a substantial premium over its accounting book value, likely reflecting high expectations for future growth or the presence of significant intangible assets.
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