Price to Earnings (P/E)
since 2005
Calculation
Old Dominion Freight Line 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 22, 2023 | 27.32 | = | 342.01 | ÷ | 12.52 | 12.52 | = | 1,377,159 | ÷ | 110,026,430 | |
| Feb 23, 2022 | 31.37 | = | 282.48 | ÷ | 9.01 | 9.01 | = | 1,034,375 | ÷ | 114,863,803 | |
| Feb 24, 2021 | 37.78 | = | 217.31 | ÷ | 5.75 | 5.75 | = | 672,682 | ÷ | 116,937,111 | |
| Feb 26, 2020 | 26.71 | = | 137.52 | ÷ | 5.15 | 5.15 | = | 615,518 | ÷ | 119,545,928 | |
| Feb 27, 2019 | 20.16 | = | 100.31 | ÷ | 4.98 | 4.98 | = | 605,668 | ÷ | 121,720,484 | |
| Feb 27, 2018 | 24.66 | = | 92.56 | ÷ | 3.75 | 3.75 | = | 463,774 | ÷ | 123,561,677 | |
| Feb 27, 2017 | 25.78 | = | 61.63 | ÷ | 2.39 | 2.39 | = | 295,765 | ÷ | 123,699,354 | |
| Feb 29, 2016 | 17.76 | = | 43.04 | ÷ | 2.42 | 2.42 | = | 304,690 | ÷ | 125,727,914 | |
| Feb 26, 2015 | 25.17 | = | 52.24 | ÷ | 2.08 | 2.08 | = | 267,514 | ÷ | 128,888,381 | |
| Feb 28, 2014 | 22.25 | = | 35.49 | ÷ | 1.59 | 1.59 | = | 206,113 | ÷ | 129,247,376 | |
| Feb 28, 2013 | 18.30 | = | 23.99 | ÷ | 1.31 | 1.31 | = | 169,452 | ÷ | 129,247,376 | |
| Feb 29, 2012 | 17.92 | = | 19.34 | ÷ | 1.08 | 1.08 | = | 139,470 | ÷ | 129,247,479 | |
| Feb 28, 2011 | 22.74 | = | 13.67 | ÷ | 0.60 | 0.60 | = | 75,651 | ÷ | 125,835,627 | |
| Mar 1, 2010 | 32.55 | = | 9.02 | ÷ | 0.28 | 0.28 | = | 34,871 | ÷ | 125,835,780 | |
| Mar 2, 2009 | 10.98 | = | 5.99 | ÷ | 0.55 | 0.55 | = | 68,677 | ÷ | 125,835,780 | |
| Feb 29, 2008 | 14.14 | = | 8.07 | ÷ | 0.57 | 0.57 | = | 71,832 | ÷ | 125,835,780 | |
| Mar 1, 2007 | 15.83 | = | 9.13 | ÷ | 0.58 | 0.58 | = | 72,569 | ÷ | 125,835,780 | |
| Mar 16, 2006 | 18.24 | = | 7.75 | ÷ | 0.42 | 0.42 | = | 53,475 | ÷ | 125,835,780 |
Based on: 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 Old Dominion Freight Line Inc. Annual Report.
A sustained long-term expansion in both market valuation and profitability is evident from 2006 through 2023. The share price experienced an aggressive upward trajectory, rising from 7.75 US$ to 342.01 US$, while earnings per share (EPS) grew from 0.42 US$ to 12.52 US$. This simultaneous growth indicates a strong fundamental performance coupled with increasing investor confidence.
- Earnings Performance and Share Price Correlation
- Growth in share price generally aligned with the growth in EPS, though the share price increased at a more rapid pace. Between 2006 and 2023, the share price increased by approximately 4,310%, while EPS increased by approximately 2,881%. This divergence suggests that the market attributed increasing value to the company beyond simple earnings growth, resulting in an expansion of the valuation multiple over time.
- Price-to-Earnings (P/E) Ratio Fluctuations
- The P/E ratio exhibited significant volatility, particularly during periods of earnings instability. A notable peak occurred in 2010, where the ratio surged to 32.55. This spike was driven by a sharp contraction in EPS to 0.28 US$, while the share price remained relatively resilient, indicating that investors viewed the earnings dip as temporary. Following this, the ratio normalized, fluctuating between 17.76 and 25.78 from 2011 to 2018.
- Recent Valuation Trends
- A period of valuation expansion is observable starting in 2020, with the P/E ratio reaching a peak of 37.78 in 2021. This suggests a heightened market premium paid for earnings during this period. In the subsequent two years, the P/E ratio moderated to 31.37 in 2022 and 27.32 in 2023, even as EPS continued to climb significantly to 12.52 US$. This moderation indicates a transition toward a more sustainable valuation multiple relative to the company's increased earnings power.
Overall, the financial profile is characterized by robust organic growth and a market valuation that has transitioned from a conservative multiple in the late 2000s to a higher, growth-oriented premium in the 2020s. The ability of the share price to maintain upward momentum despite fluctuations in the P/E ratio underscores the strength of the underlying earnings growth.
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Comparison to Competitors
Old Dominion Freight Line Inc., P/E, long-term trends, comparison to competitors
| Old Dominion Freight Line Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Feb 22, 2023 | 27.32 | 14.80 | — | 17.97 | 21.74 | 13.27 |
| Feb 23, 2022 | 31.37 | 15.07 | — | 23.67 | — | 14.11 |
| Feb 24, 2021 | 37.78 | 33.43 | — | 25.57 | — | 104.33 |
| Feb 26, 2020 | 26.71 | 82.00 | — | 21.44 | 5.82 | 20.59 |
| Feb 27, 2019 | 20.16 | 13.39 | — | 19.60 | 11.00 | 20.07 |
| Feb 27, 2018 | 24.66 | 19.29 | — | 9.26 | 8.91 | 18.37 |
| Feb 27, 2017 | 25.78 | 23.45 | — | 20.86 | 10.37 | 27.32 |
| Feb 29, 2016 | 17.76 | 46.06 | — | 13.31 | 2.54 | 17.84 |
| Feb 26, 2015 | 25.17 | 20.56 | — | 20.72 | 23.08 | 30.28 |
| Feb 28, 2014 | 22.25 | 21.03 | — | 18.35 | 29.73 | 20.22 |
| Feb 28, 2013 | 18.30 | 14.32 | — | 15.85 | — | 97.65 |
| Feb 29, 2012 | 17.92 | 20.54 | — | 16.93 | 8.28 | 19.35 |
| Feb 28, 2011 | 22.74 | 20.51 | — | 16.65 | 31.74 | 20.89 |
| Mar 1, 2010 | 32.55 | 182.81 | — | 16.53 | — | 27.10 |
| Mar 2, 2009 | 10.98 | 21.29 | — | 10.61 | — | 13.65 |
| Feb 29, 2008 | 14.14 | 17.96 | — | 17.75 | 8.95 | 190.19 |
| Mar 1, 2007 | 15.83 | 18.49 | — | 17.51 | 0.19 | 17.80 |
| Mar 16, 2006 | 18.24 | 17.42 | — | 23.08 | — | 22.04 |
Based on: 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).
Comparison to Sector (Transportation)
Old Dominion Freight Line Inc., P/E, long-term trends, comparison to sector (transportation)
| Old Dominion Freight Line Inc. | Transportation | |
|---|---|---|
| Feb 22, 2023 | 27.32 | 30.10 |
| Feb 23, 2022 | 31.37 | 22.48 |
| Feb 24, 2021 | 37.78 | — |
| Feb 26, 2020 | 26.71 | 62.33 |
| Feb 27, 2019 | 20.16 | 17.05 |
| Feb 27, 2018 | 24.66 | 12.83 |
| Feb 27, 2017 | 25.78 | 21.13 |
| Feb 29, 2016 | 17.76 | 12.05 |
| Feb 26, 2015 | 25.17 | 23.46 |
| Feb 28, 2014 | 22.25 | 20.08 |
| Feb 28, 2013 | 18.30 | 29.57 |
| Feb 29, 2012 | 17.92 | 17.70 |
| Feb 28, 2011 | 22.74 | 19.66 |
| Mar 1, 2010 | 32.55 | 31.59 |
| Mar 2, 2009 | 10.98 | 80.82 |
| Feb 29, 2008 | 14.14 | 31.23 |
| Mar 1, 2007 | 15.83 | 4.61 |
| Mar 16, 2006 | 18.24 | — |
Based on: 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).
Comparison to Industry (Industrials)
Old Dominion Freight Line Inc., P/E, long-term trends, comparison to industry (industrials)
| Old Dominion Freight Line Inc. | Industrials | |
|---|---|---|
| Feb 22, 2023 | 27.32 | 36.06 |
| Feb 23, 2022 | 31.37 | 35.59 |
| Feb 24, 2021 | 37.78 | — |
| Feb 26, 2020 | 26.71 | 43.95 |
| Feb 27, 2019 | 20.16 | 33.70 |
| Feb 27, 2018 | 24.66 | 29.83 |
| Feb 27, 2017 | 25.78 | 22.92 |
| Feb 29, 2016 | 17.76 | 22.89 |
| Feb 26, 2015 | 25.17 | 18.79 |
| Feb 28, 2014 | 22.25 | 19.13 |
| Feb 28, 2013 | 18.30 | 17.77 |
| Feb 29, 2012 | 17.92 | 15.75 |
| Feb 28, 2011 | 22.74 | 18.72 |
| Mar 1, 2010 | 32.55 | 19.17 |
| Mar 2, 2009 | 10.98 | 9.73 |
| Feb 29, 2008 | 14.14 | 16.93 |
| Mar 1, 2007 | 15.83 | 11.65 |
| Mar 16, 2006 | 18.24 | 50.62 |
Based on: 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).