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).
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Current Valuation Ratios
Paramount Global, current price multiples
| Paramount Global | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | Media & Entertainment | Communication Services | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | ||||||||||||
| No. shares of common stock outstanding | ||||||||||||
| Growth rate (g) | ||||||||||||
| Earnings per share (EPS) | ||||||||||||
| Next year expected EPS | ||||||||||||
| Operating profit per share | ||||||||||||
| Sales per share | ||||||||||||
| Book value per share (BVPS) | ||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | ||||||||||||
| Price to next year expected earnings | ||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||
| Price to operating profit (P/OP) | ||||||||||||
| Price to sales (P/S) | ||||||||||||
| Price to book value (P/BV) | ||||||||||||
Based on: 10-K (reporting date: 2022-12-31).
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)
Paramount Global, historical price multiples
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibits significant fluctuations over the examined period. Beginning at 9.64 in 2018, it declined sharply to 5.43 in 2019 before increasing steeply to 16.78 in 2020. Subsequently, it dropped again to 5.19 in 2021 and then rose to 14.61 in 2022. This pattern suggests volatility in market valuation relative to earnings, with alternating periods of investor optimism and caution.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio follows a somewhat parallel trend to the P/E ratio but with generally lower values. Starting at 6.82 in 2018, it declined steadily to 4.21 in 2019, then escalated to 9.82 in 2020. It dropped again to its lowest point of 3.71 in 2021, then increased to 6.53 in 2022. This indicates fluctuating market valuation relative to operating profitability, reflecting changing investor perspectives on core operational performance over time.
- Price to Sales (P/S) Ratio
- The P/S ratio shows a general downward trend with intermittent peaks. It started at 1.3 in 2018, decreased to a low of 0.65 in 2019, rose sharply to 1.61 in 2020, then declined steadily to 0.82 in 2021 and further to 0.51 in 2022. This suggests that the stock price in relation to sales has generally weakened over the period, with 2020 representing a temporary surge.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio experienced a considerable decline from 6.74 in 2018 to 1.36 in 2019, followed by a moderate rebound to 2.64 in 2020. Thereafter, it decreased again to 1.04 in 2021 and further to 0.66 in 2022. This pattern indicates a reduction in market valuation relative to the company's book value over time, with 2020 being an outlier year with relatively higher valuation.
- Summary of Trends
- Overall, the financial ratios reveal volatility and cyclicality in market valuation metrics across earnings, operating profit, sales, and book value. The year 2020 stands out as a period with elevated valuation multiples across most measures, likely reflecting atypical market conditions or company-specific factors. Conversely, 2019 and 2021 show more depressed ratios, denoting lower investor confidence or weaker market perception of the company's financial metrics. The general decline in price-to-sales and price-to-book value ratios towards 2022 suggests a market trend of increasingly conservative valuation relative to these fundamentals.
Price to Earnings (P/E)
Paramount Global, historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net earnings attributable to Paramount common stock (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| P/E Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/E Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net earnings attributable to Paramount common stock ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Paramount Global Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals significant fluctuations in the company's share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the five-year period from 2018 to 2022.
- Share Price
- The share price experienced notable volatility. It initially declined from $50.64 at the end of 2018 to $29.29 in 2019, more than a 40% decrease. This was followed by a strong recovery in 2020, where the price escalated to $65.60, the highest value in the period. However, in 2021, the price fell again to $35.99 and continued to decline to $23.50 by the end of 2022, marking a sustained downward trend in the last two years.
- Earnings Per Share (EPS)
- EPS figures corresponded with some of the share price movements but also showed distinct patterns. After a slight increase from $5.26 in 2018 to $5.39 in 2019, EPS dropped substantially to $3.91 in 2020. In 2021, there was a significant rebound to $6.94, representing the highest EPS value in the dataset. However, this was followed by a sharp decline to $1.61 in 2022, indicating a considerable deterioration in profitability in the most recent year.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibited considerable variability, reflecting the interplay between share price and earnings growth. It decreased from 9.64 in 2018 to 5.43 in 2019, consistent with the drop in share price combined with stable EPS. The ratio then surged to 16.78 in 2020, suggesting that the share price might have been perceived as overvalued given the lower EPS. In 2021, the P/E ratio dropped sharply to 5.19, coinciding with increased earnings and a moderate share price, implying improved valuation attractiveness. The ratio climbed again to 14.61 in 2022, reflecting the sharp decline in EPS relative to the share price, which remained low but did not decrease proportionally to earnings.
Overall, the company exhibited high volatility in both market valuation and earnings over the five years. The sharp fluctuations in EPS and share price, particularly the declines in 2022, highlight potential challenges in sustaining earnings and investor confidence. The P/E ratio variations further suggest periods where the stock may have been perceived alternately as undervalued or overvalued, emphasizing uncertainty in market perceptions and underlying operational performance.
Price to Operating Profit (P/OP)
Paramount Global, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| P/OP Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/OP Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Paramount Global Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited notable volatility during the period from 2018 to 2022. Starting at $50.64 at the end of 2018, it declined significantly to $29.29 by the end of 2019. A sharp recovery was observed in 2020, reaching a peak of $65.60. However, this was followed by a decrease in subsequent years, dropping to $35.99 in 2021 and further to $23.50 by the end of 2022. This indicates an unstable market valuation with a pronounced downward trend in the most recent year.
- Operating Profit Per Share
- The operating profit per share showed a relatively stable but declining trend from 2018 to 2020, decreasing from $7.42 to $6.68. In 2021, there was a significant increase to $9.71, representing a peak in operating profitability per share during the examined period. Despite this improvement, 2022 revealed a sharp downturn to $3.60, indicating a substantial reduction in operating efficiency or profitability in that year.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio fluctuated considerably over the years. Initially, it was 6.82 at the end of 2018, before declining to 4.21 in 2019. In 2020, the ratio surged to 9.82, coinciding with the peak share price increase but a dip in operating profit per share. The lowest ratio was observed in 2021 at 3.71, reflecting the peak operating profit per share alongside a lower share price. By 2022, the ratio increased again to 6.53, likely due to the sharp decline in operating profit per share while the share price remained low.
- Overall Trends and Insights
- The data indicates that the company experienced significant fluctuations in market valuation and profitability. The share price and operating profit per share do not move in perfect correlation, suggesting varying investor sentiment or external factors impacting market valuation relative to operational performance. The volatility in the P/OP ratio further highlights the inconsistency between the share price and profitability metrics across the years. The sharp declines in both share price and operating profit per share in 2022 may signal underlying challenges faced during that year.
Price to Sales (P/S)
Paramount Global, historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| P/S Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/S Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Paramount Global Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
Analysis of the financial data reveals notable fluctuations in the share price, sales per share, and price-to-sales (P/S) ratio over the observed five-year period.
- Share Price
- The share price shows considerable volatility. It started at $50.64 at the end of 2018, declined sharply to $29.29 by the end of 2019, then surged to a peak of $65.60 in 2020. However, subsequently, the share price decreased markedly again to $35.99 in 2021, followed by a further decline to $23.50 at the close of 2022. This pattern indicates a highly unstable market valuation with significant swings year over year.
- Sales per Share
- Sales per share demonstrated a generally upward trend over the five years. Starting at $38.91 in 2018, there was an increase to $45.32 in 2019, a decrease to $40.81 in 2020, which was followed by recovery and growth to $44.07 in 2021 and culminating at $46.35 in 2022. Despite some fluctuations, the overall sales per share increased by approximately 19% from 2018 to 2022, suggesting improvements in underlying sales performance on a per-share basis.
- Price-to-Sales (P/S) Ratio
- The P/S ratio exhibited a declining trend with significant variation. It started at 1.3 in 2018, halved to 0.65 in 2019, then rebounded to 1.61 in 2020, corresponding with the peak share price that year. Subsequently, the ratio decreased to 0.82 in 2021 and further dropped to 0.51 in 2022, the lowest point in the period examined. This downward trajectory in the P/S ratio despite increasing sales per share suggests that the market valuation relative to sales has contracted substantially, possibly reflecting lowered investor confidence or market skepticism about future growth or profitability.
In summary, while sales per share have shown steady improvement, the share price has been highly volatile, and the P/S ratio has declined, indicating a disconnect between operational sales performance and market valuation. This may point to external factors affecting investor sentiment or broader market conditions impacting the valuation metrics independently of underlying sales growth.
Price to Book Value (P/BV)
Paramount Global, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Paramount stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| P/BV Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| P/BV Ratio, Industry | ||||||
| Communication Services | ||||||
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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Total Paramount stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Paramount Global Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited considerable volatility over the period analyzed. Starting at $50.64 in 2018, it declined sharply to $29.29 in 2019, then surged to a peak of $65.60 in 2020. Subsequently, the price decreased significantly to $35.99 in 2021 and further fell to $23.50 by the end of 2022. Overall, the share price demonstrated a pattern of initial decline, a strong rebound, followed by a persistent downward trend.
- Book Value Per Share (BVPS) Trend
- The book value per share showed a consistent upward trajectory throughout the period. Beginning at $7.52 in 2018, it nearly tripled to $21.52 in 2019 and continued to increase steadily to $24.81 in 2020. The growth accelerated in 2021, reaching $34.54, and further rose slightly to $35.41 in 2022. This indicates a strengthening of the company's net asset value on a per-share basis.
- Price-to-Book Value (P/BV) Ratio Trend
- The price-to-book ratio demonstrated a marked decline over the years. Initially high at 6.74 in 2018, it dropped substantially to 1.36 in 2019. There was a partial recovery to 2.64 in 2020, likely reflecting the peak in share price during that year. However, the ratio decreased again to near parity levels of 1.04 in 2021 and further declined to 0.66 by 2022. This decreasing trend suggests the market valuation of the stock has been losing premium relative to the book value, potentially indicating market skepticism or undervaluation despite the rising book value.