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).
Current Valuation Ratios
Twenty-First Century Fox Inc., current price multiples
| Twenty-First Century Fox Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | ||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $49.43 | |||||||
| No. shares of common stock outstanding | 1,856,929,453 | |||||||
| Growth rate (g) | 26.00% | |||||||
| Earnings per share (EPS) | $2.40 | |||||||
| Next year expected EPS | $3.03 | |||||||
| Operating profit per share | $3.40 | |||||||
| Sales per share | $16.37 | |||||||
| Book value per share (BVPS) | $10.54 | |||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | 20.56 | 21.66 | 8.17 | 29.32 | 61.11 | — | 43.95 | |
| Price to next year expected earnings | 16.32 | 17.27 | 7.57 | 23.15 | 47.42 | — | 43.27 | |
| Price-earnings-growth (PEG) | 0.79 | 0.85 | 1.04 | 1.10 | 2.12 | — | 27.96 | |
| Price to operating profit (P/OP) | 14.55 | 19.29 | 5.68 | 26.36 | 51.10 | — | 26.27 | |
| Price to sales (P/S) | 3.02 | 6.20 | 1.07 | 11.12 | 13.65 | 7.41 | 2.39 | |
| Price to book value (P/BV) | 4.69 | 6.67 | 1.55 | 10.01 | 21.51 | 19.53 | 2.17 | |
Based on: 10-K (reporting date: 2018-06-30).
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)
Twenty-First Century Fox Inc., historical price multiples
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
- Price to earnings (P/E) ratio
- The P/E ratio exhibited significant fluctuations across the analyzed periods. Starting at 10.23 in 2013, it rose sharply to 17.35 in 2014, then declined to a low of 7.32 in 2015. Subsequently, it increased again, stabilizing near 17.69 in both 2016 and 2017, before slightly rising to 18.81 in 2018. This pattern suggests variable market expectations regarding earnings, with periods of optimism followed by cautious valuation.
- Price to operating profit (P/OP) ratio
- The P/OP ratio showed an overall decreasing trend from 2013 to 2017, starting at 13.51 in 2013 and falling steadily to 8.37 in 2017. This decrease indicates improving operating profitability relative to the share price or more attractive valuation by investors during this timeframe. However, in 2018, the P/OP ratio rebounded significantly to 13.31, indicating a less favorable valuation relative to operating profits or possibly a decline in operating profit margins.
- Price to sales (P/S) ratio
- The P/S ratio demonstrated a downward trend from 2.62 in 2013 to a low of 1.78 in 2016. A modest increase was observed in 2017 to 1.83, followed by a notable rise to 2.76 in 2018. This suggests that the market initially assigned lower value per unit of sales but then increased its valuation sharply by the final period, implying either improved sales quality, investor confidence, or both.
- Price to book value (P/BV) ratio
- The P/BV ratio decreased from 4.27 in 2013 to a trough near 3.32 in 2017, indicating a declining premium over the company's book value. Nevertheless, it recovered to 4.29 in 2018, exceeding the initial 2013 level. This recovery may reflect increased investor confidence in the company's net asset value or expectations of growth and profitability improvements.
Price to Earnings (P/E)
Twenty-First Century Fox Inc., historical P/E calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,852,574,153 | 1,851,057,916 | 1,862,528,151 | 2,019,460,912 | 2,190,056,341 | 2,309,530,372 | |
| Selected Financial Data (US$) | |||||||
| Net income attributable to Twenty-First Century Fox, Inc. stockholders (in millions) | 4,464) | 2,952) | 2,755) | 8,306) | 4,514) | 7,097) | |
| Earnings per share (EPS)2 | 2.41 | 1.59 | 1.48 | 4.11 | 2.06 | 3.07 | |
| Share price1, 3 | 45.32 | 28.21 | 26.16 | 30.12 | 35.76 | 31.44 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 18.81 | 17.69 | 17.69 | 7.32 | 17.35 | 10.23 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Take-Two Interactive Software Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
EPS = Net income attributable to Twenty-First Century Fox, Inc. stockholders ÷ No. shares of common stock outstanding
= 4,464,000,000 ÷ 1,852,574,153 = 2.41
3 Closing price as at the filing date of Twenty-First Century Fox Inc. Annual Report.
4 2018 Calculation
P/E ratio = Share price ÷ EPS
= 45.32 ÷ 2.41 = 18.81
5 Click competitor name to see calculations.
The financial data over the six-year period reveals notable fluctuations in the key metrics of the company.
- Share Price
- The share price experienced an overall upward trajectory from 2013 to 2018. Starting at $31.44 in 2013, it rose to $35.76 in 2014 but then declined in the subsequent two years to reach its lowest point of $26.16 in 2016. From 2016 onward, the share price reversed course and increased significantly, culminating in a marked rise to $45.32 by mid-2018. This represents a substantial increase in the most recent year compared to prior years.
- Earnings Per Share (EPS)
- EPS displayed considerable volatility over the period. After starting at $3.07 in 2013, earnings dropped sharply to $2.06 in 2014, then rebounded strongly to $4.11 in 2015. Following this peak, EPS again decreased dramatically to $1.48 in 2016. From 2016 to 2018, EPS showed recovery, with a gradual increase to $1.59 in 2017 and further to $2.41 in 2018. Despite this recovery, EPS in 2018 remained below the 2013 and 2015 levels.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibited a pattern reflecting the erratic EPS figures and share price movements. The ratio started moderately low at 10.23 in 2013, increased sharply to 17.35 in 2014 when EPS declined, then decreased to a low of 7.32 in 2015, coinciding with the EPS peak that year. Subsequently, the P/E ratio rose again to 17.69 in 2016 and remained stable at this level in 2017. It further increased slightly to 18.81 by 2018, indicating higher valuation multiples despite EPS still being lower than earlier peak values.
In summary, the company's share price recovered strongly after mid-decade declines, while earnings per share were marked by volatility with peaks and troughs, affecting the valuation multiples observed in the P/E ratio. The increasing P/E in the presence of moderate EPS growth towards 2018 suggests greater market optimism or expectations for future earnings potential.
Price to Operating Profit (P/OP)
Twenty-First Century Fox Inc., historical P/OP calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,852,574,153 | 1,851,057,916 | 1,862,528,151 | 2,019,460,912 | 2,190,056,341 | 2,309,530,372 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in millions) | 6,307) | 6,240) | 5,669) | 5,906) | 5,488) | 5,375) | |
| Operating profit per share2 | 3.40 | 3.37 | 3.04 | 2.92 | 2.51 | 2.33 | |
| Share price1, 3 | 45.32 | 28.21 | 26.16 | 30.12 | 35.76 | 31.44 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 13.31 | 8.37 | 8.59 | 10.30 | 14.27 | 13.51 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Take-Two Interactive Software Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,307,000,000 ÷ 1,852,574,153 = 3.40
3 Closing price as at the filing date of Twenty-First Century Fox Inc. Annual Report.
4 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 45.32 ÷ 3.40 = 13.31
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited fluctuations over the analyzed period. Starting at $31.44 in mid-2013, it increased to a peak of $35.76 by mid-2014. This was followed by a decline through 2015 and 2016, reaching a low of $26.16. A moderate recovery occurred in 2017 with the price at $28.21, succeeded by a significant rise in 2018 to $45.32, marking the highest value observed within the timeframe.
- Operating Profit Per Share
- Operating profit per share showed a steady upward trend throughout the period. Beginning at $2.33 in mid-2013, it increased each year with minor variations, reaching $3.40 by mid-2018. This reflects sustained growth in profitability on a per-share basis, with the most notable increments occurring between 2014 and 2017.
- Price to Operating Profit Ratio (P/OP)
- The Price to Operating Profit ratio experienced a general decline from 13.51 in 2013 to a low of 8.37 in 2017, indicating that the share price was becoming relatively cheaper compared to operating profit per share. However, there was a sharp increase to 13.31 in 2018, suggesting a revaluation or market optimism that drove the share price higher at a faster rate than operating profit.
- Overall Insights
- The data indicates a period of improving operational profitability measured by operating profit per share. Despite this improvement, the market's valuation of these profits, as indicated by the P/OP ratio, decreased initially until 2017, possibly reflecting investor caution or market conditions. In 2018, the share price surged considerably, leading to an increased P/OP ratio and suggesting renewed confidence or external factors influencing market valuation beyond operational earnings performance alone.
Price to Sales (P/S)
Twenty-First Century Fox Inc., historical P/S calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,852,574,153 | 1,851,057,916 | 1,862,528,151 | 2,019,460,912 | 2,190,056,341 | 2,309,530,372 | |
| Selected Financial Data (US$) | |||||||
| Revenues (in millions) | 30,400) | 28,500) | 27,326) | 28,987) | 31,867) | 27,675) | |
| Sales per share2 | 16.41 | 15.40 | 14.67 | 14.35 | 14.55 | 11.98 | |
| Share price1, 3 | 45.32 | 28.21 | 26.16 | 30.12 | 35.76 | 31.44 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 2.76 | 1.83 | 1.78 | 2.10 | 2.46 | 2.62 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Take-Two Interactive Software Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 30,400,000,000 ÷ 1,852,574,153 = 16.41
3 Closing price as at the filing date of Twenty-First Century Fox Inc. Annual Report.
4 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= 45.32 ÷ 16.41 = 2.76
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced fluctuations over the six-year period. It increased from $31.44 in 2013 to a peak of $35.76 in 2014, followed by a decline reaching its lowest point at $26.16 in 2016. Subsequently, it showed a moderate recovery in 2017 to $28.21 and then a significant rise in 2018, reaching $45.32. This indicates a volatile share price with a strong upward movement in the final year observed.
- Sales Per Share Trend
- Sales per share demonstrated a generally upward trajectory throughout the period. Starting at $11.98 in 2013, it steadily increased with minor fluctuations and reached $16.41 by 2018. This consistent growth suggests improving revenue generation relative to the number of shares outstanding over time.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio showed a decreasing trend from 2.62 in 2013 to its lowest value of 1.78 in 2016, indicating that the market price per share was weakening relative to sales per share during those years. From 2016 onwards, the ratio rose again, reaching 2.76 in 2018, the highest over the period. This increase, particularly in 2018, corresponds with the substantial rise in share price, suggesting improved market expectations or valuation multiples despite the relatively steady increase in sales per share.
- Overall Insights
- Over the examined timeframe, sales per share showed consistent growth, reflecting positive operational performance or revenue growth. The share price, however, was more volatile, with an initial decline after 2014 followed by a strong rebound in 2018. The P/S ratio’s movement mirrors these dynamics, decreasing during the period of share price decline and then rising sharply in 2018. This pattern may indicate changing market perceptions of the company's value, with 2018 marking renewed investor confidence or market appreciation beyond just sales growth.
Price to Book Value (P/BV)
Twenty-First Century Fox Inc., historical P/BV calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,852,574,153 | 1,851,057,916 | 1,862,528,151 | 2,019,460,912 | 2,190,056,341 | 2,309,530,372 | |
| Selected Financial Data (US$) | |||||||
| Total Twenty-First Century Fox, Inc. stockholders’ equity (in millions) | 19,564) | 15,722) | 13,661) | 17,220) | 17,418) | 16,998) | |
| Book value per share (BVPS)2 | 10.56 | 8.49 | 7.33 | 8.53 | 7.95 | 7.36 | |
| Share price1, 3 | 45.32 | 28.21 | 26.16 | 30.12 | 35.76 | 31.44 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 4.29 | 3.32 | 3.57 | 3.53 | 4.50 | 4.27 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Take-Two Interactive Software Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
BVPS = Total Twenty-First Century Fox, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 19,564,000,000 ÷ 1,852,574,153 = 10.56
3 Closing price as at the filing date of Twenty-First Century Fox Inc. Annual Report.
4 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= 45.32 ÷ 10.56 = 4.29
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a fluctuating pattern over the evaluated period. Initially, there was an increase from $31.44 in mid-2013 to $35.76 in mid-2014. Subsequently, the price declined over the next two years, reaching its lowest point at $26.16 in mid-2016. From this trough, the share price gradually recovered to $28.21 in mid-2017 and then exhibited a significant increase to $45.32 by mid-2018.
- Book Value Per Share (BVPS) Trend
- The book value per share showed a general upward trend characterized by some volatility. Starting at $7.36 in mid-2013, it increased steadily to $8.53 by mid-2015. However, a decline occurred in the following year, bringing BVPS down to $7.33 in mid-2016. After that year, the value resumed growth, reaching $8.49 by mid-2017 and further rising to $10.56 in mid-2018, reflecting an overall strengthening of the company’s net asset value per share.
- Price-to-Book Value (P/BV) Ratio Trend
- The price-to-book value ratio initially rose slightly from 4.27 in mid-2013 to 4.50 in mid-2014. Thereafter, it trended downward over the next three years, hitting the lowest point at 3.32 in mid-2017. In mid-2018, the ratio increased notably to 4.29. This fluctuation indicates changes in market perceptions relative to the company's net asset value, with the valuation multiple expanding during the periods of share price appreciation, especially notable in the final year.
- Overall Insights
- The financial data over the six-year span reveal periods of volatility in market valuation alongside a generally upward trend in book value per share. The rise in share price and P/BV ratio in mid-2018 suggests improved investor confidence or market conditions relative to prior years. The drop in both share price and BVPS around mid-2016 indicates a challenging phase, but the recovery in subsequent years points to positive developments or effective management responses. The divergence between share price and BVPS in some years implies that market sentiment and intrinsic value moved somewhat independently during those intervals.