Price to Earnings (P/E)
since 2005
Calculation
Paramount Global, P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings (loss) attributable to Paramount common stock1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2023 | 14.61 | = | 23.50 | ÷ | 1.61 | 1.61 | = | 1,046 | ÷ | 650,516,853 | |
| Feb 15, 2022 | 5.19 | = | 35.99 | ÷ | 6.94 | 6.94 | = | 4,499 | ÷ | 648,584,674 | |
| Feb 24, 2021 | 16.78 | = | 65.60 | ÷ | 3.91 | 3.91 | = | 2,422 | ÷ | 619,606,133 | |
| Feb 20, 2020 | 5.43 | = | 29.29 | ÷ | 5.39 | 5.39 | = | 3,308 | ÷ | 613,739,990 | |
| Feb 15, 2019 | 9.64 | = | 50.64 | ÷ | 5.26 | 5.26 | = | 1,960 | ÷ | 372,969,983 | |
| Feb 20, 2018 | 60.30 | = | 56.25 | ÷ | 0.93 | 0.93 | = | 357 | ÷ | 382,719,931 | |
| Feb 17, 2017 | 21.33 | = | 65.69 | ÷ | 3.08 | 3.08 | = | 1,261 | ÷ | 409,535,133 | |
| Feb 16, 2016 | 14.61 | = | 44.92 | ÷ | 3.07 | 3.07 | = | 1,413 | ÷ | 459,540,920 | |
| Feb 13, 2015 | 10.05 | = | 59.83 | ÷ | 5.95 | 5.95 | = | 2,959 | ÷ | 497,272,250 | |
| Feb 14, 2014 | 20.51 | = | 64.96 | ÷ | 3.17 | 3.17 | = | 1,879 | ÷ | 593,378,347 | |
| Feb 15, 2013 | 17.84 | = | 44.64 | ÷ | 2.50 | 2.50 | = | 1,574 | ÷ | 629,160,629 | |
| Feb 23, 2012 | 14.64 | = | 29.44 | ÷ | 2.01 | 2.01 | = | 1,305 | ÷ | 649,083,865 | |
| Feb 25, 2011 | 21.86 | = | 23.54 | ÷ | 1.08 | 1.08 | = | 724 | ÷ | 672,399,794 | |
| Feb 25, 2010 | 39.28 | = | 13.14 | ÷ | 0.33 | 0.33 | = | 227 | ÷ | 677,041,907 | |
| Feb 25, 2009 | — | = | 4.98 | ÷ | -17.19 | -17.19 | = | -11,673 | ÷ | 679,091,575 | |
| Feb 28, 2008 | 13.08 | = | 23.96 | ÷ | 1.83 | 1.83 | = | 1,247 | ÷ | 680,717,792 | |
| Mar 1, 2007 | 14.17 | = | 29.97 | ÷ | 2.12 | 2.12 | = | 1,661 | ÷ | 785,045,672 | |
| Mar 16, 2006 | — | = | 24.22 | ÷ | -9.18 | -9.18 | = | -7,089 | ÷ | 772,311,368 |
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 Paramount Global Annual Report.
The analysis of the price-to-earnings (P/E) ratio and supporting metrics from 2006 to 2023 reveals significant volatility in market valuation and earnings consistency. The P/E ratio demonstrates a wide range of fluctuations, reflecting periods of both aggressive market pricing and significant valuation contractions.
- Valuation Volatility and Peaks
- The P/E ratio experienced extreme peaks in 2010 (39.28) and 2018 (60.30). These spikes were primarily driven by a contraction in earnings per share (EPS) while share prices remained relatively elevated. Specifically, in 2018, the ratio reached its highest point as the share price stood at 56.25 US$ against a diminished EPS of 0.93 US$.
- Earnings Stability and Gaps
- Earnings were inconsistent, with substantial negative EPS reported in 2006 (-9.18 US$) and 2009 (-17.19 US$), rendering the P/E ratio mathematically undefined for those periods. Following the 2009 low, a recovery period ensued, with EPS peaking at 5.95 US$ in 2015 and reaching a historical high of 6.94 US$ in 2022.
- Market Re-rating and Divergence
- A notable divergence between earnings and market valuation is observed in 2022. Despite the highest recorded EPS of 6.94 US$, the P/E ratio dropped to 5.19, one of the lowest levels in the series. This indicates a market re-rating where the share price declined to 35.99 US$ regardless of strong bottom-line performance.
- Recent Trends
- Between 2021 and 2023, a downward trend in share price is evident, falling from 65.60 US$ to 23.50 US$. While the P/E ratio returned to 14.61 in 2023, this was the result of a simultaneous decline in both share price and EPS (1.61 US$), suggesting a contraction in the overall scale of market valuation.
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Comparison to Competitors
Paramount Global, P/E, long-term trends, comparison to competitors
| Paramount Global | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 16, 2023 | 14.61 | 22.47 | 31.38 | 21.10 | 36.18 | 54.90 |
| Feb 15, 2022 | 5.19 | 25.74 | 16.01 | 16.44 | 33.56 | 137.89 |
| Feb 24, 2021 | 16.78 | 34.65 | 22.37 | 25.89 | 86.39 | — |
| Feb 20, 2020 | 5.43 | 28.96 | 15.39 | 32.31 | 80.67 | 23.96 |
| Feb 15, 2019 | 9.64 | 25.92 | 14.11 | 21.51 | 118.55 | 13.36 |
| Feb 20, 2018 | 60.30 | 59.34 | 8.70 | 35.20 | 220.96 | 17.28 |
| Feb 17, 2017 | 21.33 | 28.45 | 20.56 | 37.05 | 328.55 | 16.65 |
| Feb 16, 2016 | 14.61 | 29.71 | 17.78 | 84.21 | 329.51 | 23.41 |
| Feb 13, 2015 | 10.05 | 24.87 | 18.01 | 74.26 | 100.63 | 20.31 |
| Feb 14, 2014 | 20.51 | 30.87 | 21.12 | 106.36 | 215.28 | 19.83 |
| Feb 15, 2013 | 17.84 | 23.14 | 17.05 | 1,336.24 | 537.02 | 15.18 |
| Feb 23, 2012 | 14.64 | 18.97 | 19.40 | — | 30.37 | 12.48 |
| Feb 25, 2011 | 21.86 | 23.60 | 19.29 | — | 77.34 | 17.62 |
| Feb 25, 2010 | 39.28 | 26.00 | 12.59 | — | 30.08 | 17.36 |
| Feb 25, 2009 | — | 26.67 | 14.52 | — | 25.23 | 7.83 |
| Feb 28, 2008 | 13.08 | 39.48 | 23.46 | — | 28.79 | 12.79 |
| Mar 1, 2007 | 14.17 | 45.31 | 32.61 | — | 31.36 | 20.22 |
| Mar 16, 2006 | — | 68.72 | 61.12 | — | 33.20 | 19.49 |
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 (Media & Entertainment)
Paramount Global, P/E, long-term trends, comparison to sector (media & entertainment)
| Paramount Global | Media & Entertainment | |
|---|---|---|
| Feb 16, 2023 | 14.61 | 24.34 |
| Feb 15, 2022 | 5.19 | 23.98 |
| Feb 24, 2021 | 16.78 | 36.25 |
| Feb 20, 2020 | 5.43 | 28.02 |
| Feb 15, 2019 | 9.64 | 22.32 |
| Feb 20, 2018 | 60.30 | 29.39 |
| Feb 17, 2017 | 21.33 | 27.71 |
| Feb 16, 2016 | 14.61 | 32.13 |
| Feb 13, 2015 | 10.05 | 27.07 |
| Feb 14, 2014 | 20.51 | 30.86 |
| Feb 15, 2013 | 17.84 | 22.94 |
| Feb 23, 2012 | 14.64 | 17.55 |
| Feb 25, 2011 | 21.86 | 21.71 |
| Feb 25, 2010 | 39.28 | 20.34 |
| Feb 25, 2009 | — | 16.53 |
| Feb 28, 2008 | 13.08 | 24.99 |
| Mar 1, 2007 | 14.17 | 32.30 |
| Mar 16, 2006 | — | 41.90 |
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 (Communication Services)
Paramount Global, P/E, long-term trends, comparison to industry (communication services)
| Paramount Global | Communication Services | |
|---|---|---|
| Feb 16, 2023 | 14.61 | 25.39 |
| Feb 15, 2022 | 5.19 | 21.07 |
| Feb 24, 2021 | 16.78 | 36.50 |
| Feb 20, 2020 | 5.43 | 24.23 |
| Feb 15, 2019 | 9.64 | 19.46 |
| Feb 20, 2018 | 60.30 | 18.11 |
| Feb 17, 2017 | 21.33 | 24.33 |
| Feb 16, 2016 | 14.61 | 23.89 |
| Feb 13, 2015 | 10.05 | 26.45 |
| Feb 14, 2014 | 20.51 | 21.66 |
| Feb 15, 2013 | 17.84 | 27.51 |
| Feb 23, 2012 | 14.64 | 24.54 |
| Feb 25, 2011 | 21.86 | 16.12 |
| Feb 25, 2010 | 39.28 | 16.95 |
| Feb 25, 2009 | — | 13.32 |
| Feb 28, 2008 | 13.08 | 20.95 |
| Mar 1, 2007 | 14.17 | 28.07 |
| Mar 16, 2006 | — | 24.36 |
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).