Super Micro Computer Inc. (NASDAQ:SMCI)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio exhibits a fluctuating trend over the analyzed period. Initially, it declines from 17.04 in 2020 to 12.72 in 2022, indicating a potential undervaluation or improved earnings relative to price. However, beginning in 2023, the ratio rises sharply, reaching 24.91 by 2025, which may suggest increasing investor optimism or higher market valuations relative to earnings toward the later years.

Price to Operating Profit (P/OP) Ratio

This ratio follows a pattern similar to the P/E ratio but with slightly higher volatility. It decreases from 16.77 in 2020 to a low of 10.82 in 2022, reflecting enhanced operating profit relative to market price or decreased price levels. Post-2022, the ratio escalates significantly to 22.32 in 2024 before a slight contraction to 20.85 in 2025, indicating rising valuation multiples compared to operating profit and some degree of market correction in the final year.

Price to Sales (P/S) Ratio

The Price to Sales ratio shows a substantial upward trend from 0.43 in 2020 to a peak at 1.9 in 2023, marking an increase in market valuation relative to sales. This elevated ratio slightly diminishes thereafter, reaching 1.19 by 2025. The surge followed by moderation suggests an initial investor enthusiasm for sales growth or market position, tempered somewhat in recent years.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio demonstrates the most pronounced increase among the ratios, rising from 1.35 in 2020 to a notable high of 6.85 in 2023. Following this peak, it declines steadily to 4.15 by 2025. This pattern may indicate a significant rise in market valuation in relation to book value during the middle period, followed by a reversion or adjustment towards more moderate valuation levels subsequently.

Overall Assessment

Collectively, all valuation metrics experienced decreases up to 2022, suggesting improved earnings, operating profit, and sales relative to market price or a reduction in stock price. The period from 2023 to 2025 is characterized by sharp increases in valuation ratios, particularly the P/BV and P/E ratios, indicating heightened market optimism or revaluation. The slight declines or stabilization in the last year suggest some market recalibration. These trends highlight dynamic investor sentiment and shifting perceptions of the company’s financial performance and value over the analyzed timeframe.

Share Price

The share price exhibits a strong upward trend over the analyzed periods, starting at $2.74 in 2020 and increasing consistently to reach a peak of $45.54 in 2024. A slight decline is observed in 2025, with the price decreasing marginally to $43.97. This overall growth indicates significant market confidence and appreciation in the company's value over the five-year span.

Earnings Per Share (EPS)

EPS shows a steady increase from $0.16 in 2020 to $1.94 in 2024, reflecting improved profitability. However, there is a slight decrease in 2025 to $1.76, which may signal a moderation in earnings growth or a one-off impact affecting profitability in the most recent period.

Price-to-Earnings (P/E) Ratio

The P/E ratio decreased from 17.04 in 2020 to 12.72 in 2022, indicating that the share price was relatively low compared to earnings at that point, possibly reflecting undervaluation or improved earnings outpacing price rises. From 2022 onwards, the ratio increased sharply, reaching 24.91 in 2025, which suggests that the market began pricing shares at a higher premium relative to earnings. This trend may reflect heightened investor expectations or a market re-rating of the company's growth prospects despite the slight EPS decline observed in the last period.

Summary

Overall, the data reveals significant growth in both share price and earnings per share over the analyzed timeframe, with share price growth outpacing EPS increases particularly after 2022. The rising P/E ratio in the latter years highlights increased market optimism and valuation multiples. The slight declines in EPS and share price in 2025 warrant monitoring, as they may indicate emerging challenges or a market adjustment following several years of strong growth.

The data reveals notable trends in key financial metrics over a six-year period. The share price demonstrates a strong upward trajectory, increasing from $2.74 in 2020 to a peak of $45.54 in 2024, followed by a slight decline to $43.97 in 2025. This substantial appreciation suggests a growing market valuation and increased investor confidence over the examined period.

Operating profit per share shows consistent and significant growth, rising steadily from $0.16 in 2020 to $2.11 in 2025. The growth is particularly accelerated from 2021 onwards, reflecting improvements in operational efficiency or profitability that benefit the company's earnings performance on a per-share basis.

The price-to-operating profit (P/OP) ratio exhibits a fluctuating pattern. It decreases from 16.77 in 2020 to a low of 10.82 in 2022, indicating that the share price may have been undervalued relative to operating profits during that period. Subsequently, there is an increase to 22.32 in 2024, followed by a slight decrease to 20.85 in 2025. The rise in P/OP ratio in the later years suggests that the share price has grown at a faster pace than operating profits, potentially reflecting elevated investor expectations or market optimism.

Share price

Strong overall upward trend with rapid appreciation between 2022 and 2024, slight correction in 2025.

Operating profit per share

Consistent growth throughout the period, indicating continual improvement in profitability.

Price-to-operating profit ratio (P/OP)

Initial decline followed by a peak and subsequent modest decline, suggesting changing market valuation relative to operating profit performance.

In summary, the data portrays a company experiencing robust profit growth and significant share price appreciation. The changing P/OP ratio points to shifts in market sentiment, with a phase of undervaluation followed by heightened valuation levels, aligning with overall improved financial results.

The data exhibits significant growth in the share price of the company over the analyzed period. Starting at $2.74 in mid-2020, the share price steadily increased each year, peaking at $45.54 by mid-2024 before experiencing a slight decline to $43.97 in mid-2025. This trend indicates a substantial appreciation in market value, reflecting increased investor confidence or improved financial performance.

Sales per share have shown a consistent and robust upward trend as well, rising from $6.37 in 2020 to $36.97 in 2025. This growth suggests that the company has been able to significantly increase its revenue generation relative to the number of shares outstanding, highlighting strong operational performance and possible expansion activities.

Price-to-Sales (P/S) Ratio

The P/S ratio increased from 0.43 in 2020 to a peak of 1.9 in 2023, indicating that the market valuation relative to sales rose sharply. However, there is a subsequent decline to 1.8 in 2024 and further down to 1.19 in 2025. This decline in the P/S ratio despite rising sales per share suggests that the share price growth is moderating relative to the increase in sales, possibly due to market valuation adjustments or expectations of future growth stabilization.

Overall, the company demonstrates impressive growth in both share price and sales per share, reflecting strong underlying business expansion and market interest. The initial rise and subsequent moderation in the P/S ratio imply a shift towards a more conservative valuation relative to sales, which could indicate changing investor sentiment or evaluation of growth prospects.

Share Price Trend

The share price exhibited a strong upward trend over the periods analyzed. It began at $2.74 in mid-2020 and showed gradual increases until mid-2022, reaching $6.93. From mid-2022 to mid-2023, the share price surged significantly to $25.52, followed by continued growth to a peak of $45.54 in mid-2024. There was a slight decline to $43.97 by mid-2025, but the overall trend remains markedly positive across the time frame.

Book Value per Share (BVPS) Trend

Book value per share demonstrated steady growth throughout the periods. Starting at $2.03 in mid-2020, it gradually rose each year to $3.73 by mid-2023. The increase became more pronounced thereafter, with BVPS reaching $9.13 in mid-2024 and further increasing to $10.60 by mid-2025, indicating substantial growth in the company’s net asset value per share.

Price-to-Book Value (P/BV) Ratio Analysis

The P/BV ratio reflected fluctuating market valuation relative to book value. Initially, it was 1.35 in mid-2020, rising to 1.65 in mid-2021 and then more sharply to 2.54 in mid-2022. A notable increase occurred in mid-2023 when the ratio reached 6.85, indicating that the share price was trading at a significantly higher premium relative to book value. This elevated valuation slightly declined to 4.99 in mid-2024 and further to 4.15 in mid-2025, suggesting some moderation in market expectations but still maintaining a premium valuation.

Overall Insights

The data suggests a phase of rapid investor confidence and share price appreciation particularly from mid-2022 to mid-2024, surpassing the growth in book value per share. Despite some correction in the P/BV ratio post mid-2023, the company maintains a premium market valuation. The steady rise in BVPS points to improvements in underlying asset value, supporting the higher price levels. The slight recent decrease in share price and multiple might indicate a period of consolidation or market adjustment after significant prior gains.