Price to Earnings (P/E)
since 2005
Calculation
O’Reilly Automotive Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2022 | 19.98 | = | 649.24 | ÷ | 32.50 | 32.50 | = | 2,164,685 | ÷ | 66,600,918 | |
| Feb 26, 2021 | 17.92 | = | 447.33 | ÷ | 24.96 | 24.96 | = | 1,752,302 | ÷ | 70,206,669 | |
| Feb 28, 2020 | 19.85 | = | 368.72 | ÷ | 18.57 | 18.57 | = | 1,391,042 | ÷ | 74,897,080 | |
| Feb 27, 2019 | 21.77 | = | 367.96 | ÷ | 16.90 | 16.90 | = | 1,324,487 | ÷ | 78,375,610 | |
| Feb 28, 2018 | 18.02 | = | 244.19 | ÷ | 13.55 | 13.55 | = | 1,133,804 | ÷ | 83,670,900 | |
| Feb 28, 2017 | 24.00 | = | 271.71 | ÷ | 11.32 | 11.32 | = | 1,037,691 | ÷ | 91,639,693 | |
| Feb 26, 2016 | 27.44 | = | 262.93 | ÷ | 9.58 | 9.58 | = | 931,216 | ÷ | 97,189,417 | |
| Feb 27, 2015 | 27.19 | = | 208.13 | ÷ | 7.66 | 7.66 | = | 778,182 | ÷ | 101,648,745 | |
| Feb 28, 2014 | 23.94 | = | 150.85 | ÷ | 6.30 | 6.30 | = | 670,292 | ÷ | 106,364,924 | |
| Feb 28, 2013 | 19.34 | = | 101.79 | ÷ | 5.26 | 5.26 | = | 585,746 | ÷ | 111,304,878 | |
| Feb 28, 2012 | 21.90 | = | 87.34 | ÷ | 3.99 | 3.99 | = | 507,673 | ÷ | 127,315,291 | |
| Feb 28, 2011 | 18.70 | = | 55.58 | ÷ | 2.97 | 2.97 | = | 419,373 | ÷ | 141,128,889 | |
| Feb 26, 2010 | 17.58 | = | 39.30 | ÷ | 2.24 | 2.24 | = | 307,498 | ÷ | 137,566,704 | |
| Mar 2, 2009 | 23.36 | = | 32.23 | ÷ | 1.38 | 1.38 | = | 186,232 | ÷ | 134,952,674 | |
| Mar 3, 2008 | 16.22 | = | 27.26 | ÷ | 1.68 | 1.68 | = | 193,988 | ÷ | 115,390,026 | |
| Mar 1, 2007 | 21.77 | = | 34.02 | ÷ | 1.56 | 1.56 | = | 178,085 | ÷ | 113,981,927 | |
| Mar 15, 2006 | 24.44 | = | 35.71 | ÷ | 1.46 | 1.46 | = | 164,266 | ÷ | 112,425,511 |
Based on: 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 O’Reilly Automotive Inc. Annual Report.
The financial trajectory from 2006 to 2022 is characterized by substantial growth in both share price and earnings per share, while the price-to-earnings (P/E) ratio has remained within a relatively consistent historical range. This suggests that the long-term appreciation in market value has been driven primarily by fundamental earnings growth rather than speculative valuation expansion.
- Earnings Per Share (EPS) Performance
- A consistent upward trend in EPS is observed, rising from 1.46 in 2006 to 32.50 in 2022. The growth was nearly linear, with a single notable exception in 2009, where EPS declined to 1.38. Following this contraction, earnings accelerated, particularly after 2015, demonstrating a strong capacity for compounding profitability over the sixteen-year period.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio has exhibited periodic fluctuations, oscillating between a minimum of 16.22 in 2008 and a maximum of 27.44 in 2016. A period of valuation expansion occurred between 2014 and 2016, where the ratio climbed from 23.94 to 27.44. Subsequently, the ratio normalized and stabilized, trading between 17.92 and 24.00 from 2017 through 2022, ending the period at 19.98.
- Share Price Appreciation and Valuation Correlation
- The share price experienced an overall increase from 35.71 in 2006 to 649.24 in 2022. Because the P/E ratio did not experience a permanent structural shift upward, the significant rise in share price is directly attributable to the growth in EPS. The stability of the P/E ratio indicates that the market has maintained a consistent valuation premium on the company's earnings despite the massive scale of growth in absolute price and profitability.
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Comparison to Competitors
O’Reilly Automotive Inc., P/E, long-term trends, comparison to competitors
| O’Reilly Automotive Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Feb 28, 2022 | 19.98 | 48.08 | 24.51 | 22.36 | 881.78 |
| Feb 26, 2021 | 17.92 | 78.20 | 17.38 | 11.96 | 17.13 |
| Feb 28, 2020 | 19.85 | 86.30 | 18.87 | 37.80 | 21.11 |
| Feb 27, 2019 | 21.77 | 79.30 | 23.51 | 20.26 | 20.19 |
| Feb 28, 2018 | 18.02 | 228.25 | 22.37 | 22.62 | 22.11 |
| Feb 28, 2017 | 24.00 | 166.52 | 23.32 | 26.67 | 22.87 |
| Feb 26, 2016 | 27.44 | 463.73 | 23.15 | 26.24 | 21.62 |
| Feb 27, 2015 | 27.19 | — | 20.18 | 21.79 | 20.15 |
| Feb 28, 2014 | 23.94 | 601.07 | 22.86 | 21.13 | 17.99 |
| Feb 28, 2013 | 19.34 | — | 19.49 | 20.46 | 19.73 |
| Feb 28, 2012 | 21.90 | 129.38 | 18.15 | 17.66 | 14.54 |
| Feb 28, 2011 | 18.70 | 67.02 | 20.76 | 19.70 | 14.57 |
| Feb 26, 2010 | 17.58 | 61.80 | 18.59 | 12.26 | 12.02 |
| Mar 2, 2009 | 23.36 | 39.07 | 11.24 | 12.74 | 18.61 |
| Mar 3, 2008 | 16.22 | 65.85 | 12.59 | 15.42 | 16.30 |
| Mar 1, 2007 | 21.77 | 88.17 | 15.57 | 18.31 | 16.91 |
| Mar 15, 2006 | 24.44 | 45.52 | 16.29 | 19.15 | 17.81 |
Based on: 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).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
O’Reilly Automotive Inc., P/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| O’Reilly Automotive Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Feb 28, 2022 | 19.98 | 40.84 |
| Feb 26, 2021 | 17.92 | 49.11 |
| Feb 28, 2020 | 19.85 | 48.49 |
| Feb 27, 2019 | 21.77 | 45.41 |
| Feb 28, 2018 | 18.02 | 60.50 |
| Feb 28, 2017 | 24.00 | 47.75 |
| Feb 26, 2016 | 27.44 | 45.72 |
| Feb 27, 2015 | 27.19 | 38.28 |
| Feb 28, 2014 | 23.94 | 39.66 |
| Feb 28, 2013 | 19.34 | 37.17 |
| Feb 28, 2012 | 21.90 | 26.94 |
| Feb 28, 2011 | 18.70 | 27.21 |
| Feb 26, 2010 | 17.58 | 21.68 |
| Mar 2, 2009 | 23.36 | 14.47 |
| Mar 3, 2008 | 16.22 | 16.25 |
| Mar 1, 2007 | 21.77 | 17.92 |
| Mar 15, 2006 | 24.44 | 18.45 |
Based on: 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).
Comparison to Industry (Consumer Discretionary)
O’Reilly Automotive Inc., P/E, long-term trends, comparison to industry (consumer discretionary)
| O’Reilly Automotive Inc. | Consumer Discretionary | |
|---|---|---|
| Feb 28, 2022 | 19.98 | 39.27 |
| Feb 26, 2021 | 17.92 | 73.74 |
| Feb 28, 2020 | 19.85 | 39.37 |
| Feb 27, 2019 | 21.77 | 33.13 |
| Feb 28, 2018 | 18.02 | 47.03 |
| Feb 28, 2017 | 24.00 | 29.19 |
| Feb 26, 2016 | 27.44 | 24.70 |
| Feb 27, 2015 | 27.19 | 29.48 |
| Feb 28, 2014 | 23.94 | 26.50 |
| Feb 28, 2013 | 19.34 | 20.90 |
| Feb 28, 2012 | 21.90 | 11.38 |
| Feb 28, 2011 | 18.70 | 17.54 |
| Feb 26, 2010 | 17.58 | 18.66 |
| Mar 2, 2009 | 23.36 | 303.41 |
| Mar 3, 2008 | 16.22 | 24.33 |
| Mar 1, 2007 | 21.77 | 117.34 |
| Mar 15, 2006 | 24.44 | 17.54 |
Based on: 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).