Super Micro Computer Inc. (NASDAQ:SMCI)

Price to earnings (P/E) ratio

The P/E ratio exhibited fluctuations over the observed periods. Initially, it showed moderate volatility, starting at 17.15 and increasing to a high of 21.5 by September 30, 2021. Subsequently, the ratio declined steadily to a low of 7.82 at the end of 2022, indicating more attractive valuation or improved earnings relative to price at that time. From early 2023, there was a pronounced surge in the P/E ratio, reaching a peak of 46.35 by March 31, 2024, signaling heightened market expectations or valuation expansion. Following this peak, the ratio trended downwards, settling near 29.94 by the latest observation in September 2025, though remaining elevated relative to earlier periods.

Price to operating profit (P/OP) ratio

The P/OP ratio followed a similar trend to the P/E ratio, starting around 17.42 and rising to 19.41 in late 2021. It then declined sharply to 6.55 by the end of 2022, indicating improved operating profit relative to price. From 2023 onwards, the ratio increased markedly, peaking at 42.32 in March 2024 before decreasing gradually to 25.63 by September 2025. This pattern suggests increased valuation or decreased operating profitability relative to price during the mid-2023 to mid-2024 period, followed by some normalization.

Price to sales (P/S) ratio

The P/S ratio demonstrated a steady upward trajectory from 0.44 in September 2020 to a notable peak of 4.11 by March 2024. This represents a nearly tenfold increase over the period, which may reflect either growing market capitalization relative to sales or improving sales performance with a premium valuation. After this peak, the ratio declined to about 1.13 by September 2025, indicating a considerable correction or adjustment in valuation multiples associated with sales.

Price to book value (P/BV) ratio

The P/BV ratio showed a general increasing trend from 1.35 in September 2020 to an all-time high of 10.54 in December 2023, implying a significant rise in market valuation relative to book equity. Following this peak, the ratio decreased steadily to 3.64 by September 2025. This decline indicates a reversion towards more moderate valuations relative to book value after an extended period of expansion.

Share Price Trends

The share price demonstrates a consistent upward trajectory from September 2020 through March 2024, rising from $2.80 to a peak of $83.04. This represents substantial growth over this period. After reaching the peak in early 2024, the share price experiences a marked decline to $45.54 by June 2024, where it stabilizes for a few quarters before slightly decreasing again towards the later periods, ending at $39.76 in September 2025. The initial period reflects strong investor confidence and growth potential, while the subsequent decline may suggest market correction or reaction to changing company fundamentals.

Earnings Per Share (EPS) Trends

EPS shows a general upward trend throughout the period, increasing from $0.16 in September 2020 to a high of $2.43 in December 2024. This steady growth in profitability indicates improved earnings and operational efficiency. Notably, EPS growth appears consistent without major setbacks, although some fluctuations are seen with a peak at $2.43 followed by a decline to $1.33 by September 2025. This downward movement in EPS towards the end may indicate challenges affecting profitability or one-time events impacting earnings.

Price-to-Earnings Ratio (P/E) Trends

The P/E ratio fluctuates considerably over the periods analyzed. Initially, it starts in the mid to high teens, between 15 and 22, suggesting moderate market valuation relative to earnings. During the rapid share price appreciation phase (late 2022 to early 2024), the P/E ratio spikes dramatically, reaching a maximum of 46.35 in March 2024. This elevated ratio indicates the market may have been pricing in significant future growth expectations or a speculative premium. Following this peak, the P/E ratio declines to a range of approximately 17 to 30 by September 2025, aligning more closely with earlier historical levels. The decline in P/E ratio aligns with the falling share price and slight EPS reduction, reflecting a reassessment of valuation by investors.

Overall Analysis

The financial data reveals a period of strong performance and investor optimism up to early 2024, highlighted by increasing share price and EPS, alongside rising P/E ratios. However, post-March 2024, a correction phase is evident with both share price and EPS experiencing declines, and the P/E ratio normalizing to lower levels. This pattern may suggest that initial growth and optimism were moderated by market realities or emerging challenges. The stabilization of the share price after sharp decreases indicates a potential bottoming out, but the EPS decline warrants attention regarding sustained profitability.

The company’s share price exhibited a general upward trend over the analyzed period, beginning at $2.80 and increasing to a peak of $83.04 by March 31, 2024. Following this peak, the share price experienced a notable decline, settling around the $40-$45 range by the end of 2024 and into 2025, with some fluctuations observed thereafter.

The operating profit per share steadily increased from $0.16 at the start of the period to a high of $2.61 by September 30, 2024. This growth characterizes a strong improvement in operational profitability over the period, despite some minor fluctuations after the peak period, where values saw a moderate decline but generally remained above $1.5.

The price-to-operating-profit ratio (P/OP) showed significant variability. Initially, the ratio hovered around 17 to 19, then decreased to its lowest levels in the range of approximately 6.55 to 10.82 during the middle quarters, indicating a phase where operating profit growth was relatively strong compared to the share price, possibly suggesting undervaluation or increased operational efficiency. However, starting in December 2022, the P/OP ratio spiked dramatically to levels above 30, peaking near 42.32, before declining again but maintaining elevated ratios above 15 in the final periods. This pattern suggests that the market price surged disproportionately relative to operating profit growth, potentially reflecting increased investor expectations or speculative factors during that period.

In summary, the data reveal a significant increase in both share price and operating profit per share until mid-2024, followed by a moderation in profitability and share price stabilization at lower levels. Meanwhile, the P/OP ratio’s fluctuations highlight varying market sentiment, with phases of both undervaluation and overvaluation relative to operational earnings performance across the timeframe.

Share Price Trend

General upward trajectory from $2.80 to a peak of $83.04 by early 2024, followed by a decline and stabilization around $40-$45.

Operating Profit per Share Trend

Steady increase from $0.16 to a peak of $2.61 by September 30, 2024, with slight declines thereafter but remaining above $1.5.

Price-to-Operating-Profit Ratio (P/OP) Trend

Initial moderate levels around 17-19, dropping to lows near 6.55-10.82, then rising sharply above 30, peaking at 42.32, and subsequently decreasing but staying elevated above 15.

Insights

Operating profitability improved strongly over the period, while market valuation experienced pronounced volatility, indicating changing investor sentiment and valuation dynamics. Peaks in share price and P/OP ratio suggest periods of heightened market optimism or speculation, particularly in late 2023 to early 2024. Post-peak moderation points to a market reassessment or normalization of expectations.

Share Price Trend

The share price demonstrated notable volatility over the analyzed periods. Starting at $2.80, it increased gradually with some fluctuations, reaching a peak of $83.04 around the March 31, 2024 period. This was followed by a sharp decline to approximately $33.52 in June 2025, before partially recovering to $39.76 by September 30, 2025. Overall, the share price exhibited strong growth with significant peaks and troughs, indicating periods of both bullish and bearish investor sentiment.

Sales per Share Dynamics

Sales per share showed a consistent upward trend throughout the timeline. Beginning at $6.38, the metric rose steadily, reaching a high of $36.97 by June 30, 2025. There was a slight dip to $35.27 at the end of the observed period, but overall the growth in sales per share was strong and demonstrated increasing revenue generation capacity per share over time.

Price-to-Sales (P/S) Ratio Analysis

The price-to-sales ratio experienced significant fluctuations, starting from a low of 0.44 and climbing to a notable peak of 4.11 around March 31, 2024. Following this peak, the ratio declined to a more moderate range between 0.93 and 1.19 in the most recent quarters. The ratio spikes coincide with the periods when the share price increased significantly relative to sales, suggesting that market valuation expanded more rapidly than sales growth during those times. The subsequent decline in the P/S ratio indicates a relative revaluation or correction in the market’s pricing of the company's shares in relation to its sales.

Interrelationships and Insight

There is a positive correlation between sales per share and share price over the long term, but the P/S ratio exhibits more volatility, reflecting changing investor perceptions and market conditions. The rapid increase in share price around early 2024 compared to more moderate sales growth indicates potentially high expectations or speculative behavior in the market. The following correction in share price and P/S ratio suggests a stabilization phase. The consistent growth in sales per share reflects a strengthening operational performance, which supports the overall positive valuation trend despite short-term price volatility.

Share Price

The share price demonstrated a notable upward trend from September 2020 through March 2024, increasing from $2.80 to a peak of $83.04. This represents a significant appreciation over the period, with some volatility observed, particularly a sharp increase beginning late 2022 and reaching its highest point in early 2024. Following this peak, the share price experienced a decline but remained substantially higher than the initial value, stabilizing around the mid-40s to high 30s USD range through September 2025.

Book Value Per Share (BVPS)

BVPS showed a steady and consistent increase throughout the entire period. Beginning at $2.07 in September 2020, it rose gradually to reach $10.93 by September 2025. This steady growth indicates sustained retention of earnings or asset growth contributing to an increase in equity per share, suggesting improved underlying fundamental value over time.

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

The P/BV ratio exhibited substantial volatility in the observed timeframe. Initially ranging between approximately 1.35 and 2.54 from 2020 through late 2022, the ratio surged dramatically thereafter, peaking at 10.54 in December 2023. This surge coincided with the sharp share price increase, which outpaced the growth of book value per share. Following this peak, the P/BV ratio decreased but remained elevated relative to earlier periods, fluctuating between about 3.14 and 4.99 into 2025. This pattern indicates periods of market exuberance or heightened investor expectations that became less extreme over time, yet stock price still maintained a premium over book value compared to initial years.

Overall Insights

The data reflects a company whose market valuation grew significantly faster than its accounting book value during the middle of the examined period, particularly from late 2022 to early 2024. This discrepancy is reflected in the sharp rise in the P/BV ratio, indicating that investors assigned increasingly high value relative to net assets. The subsequent correction suggests a tempering of market enthusiasm, but the sustained higher share price and book value indicates improved financial strength and market confidence. The gradual and steady increase in book value per share underscores consistent growth in shareholder equity, while share price fluctuations and valuation multiples highlight changing market sentiment and perceptions of future growth prospects.