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
United Airlines Holdings Inc., current price multiples
| United Airlines Holdings Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Parcel Service Inc. | Transportation | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $90.65 | |||||||||
| No. shares of common stock outstanding | 323,732,094 | |||||||||
| Growth rate (g) | -44.19% | |||||||||
| Earnings per share (EPS) | $9.73 | |||||||||
| Next year expected EPS | $5.43 | |||||||||
| Operating profit per share | $15.74 | |||||||||
| Sales per share | $176.27 | |||||||||
| Book value per share (BVPS) | $39.15 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 9.32 | 13.52 | 18.48 | 19.67 | 13.30 | 15.95 | 31.64 | |||
| Price to next year expected earnings | 16.70 | 12.13 | 26.06 | 15.99 | 7.08 | 14.33 | 29.68 | |||
| Price to operating profit (P/OP) | 5.76 | 10.61 | 65.08 | 13.66 | 9.08 | 15.06 | 25.64 | |||
| Price to sales (P/S) | 0.51 | 0.63 | 4.14 | 5.47 | 0.84 | 1.57 | 2.55 | |||
| Price to book value (P/BV) | 2.32 | 1.97 | 8.45 | 7.86 | 4.60 | 4.99 | 7.43 | |||
Based on: 10-K (reporting date: 2024-12-31).
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)
United Airlines Holdings Inc., historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio data is only available from 2022 onwards. In 2022, the ratio stood at 21.74, indicating relatively high market expectations of the company's earnings. This ratio dropped significantly in 2023 to 5.7, suggesting a decrease in price relative to earnings, which may indicate a more attractive valuation or reduced earnings expectations during that year. In 2024, the P/E ratio increased again to 9.58, signaling some recovery in market valuation relative to earnings but remaining below the 2022 level.
- Price to Operating Profit (P/OP) Ratio
- For the years with available information, the P/OP ratio showed a downward trend from 6.86 in 2022 to 3.54 in 2023, indicating that the price investors were willing to pay per unit of operating profit declined substantially. This could reflect improved operating profits or a decrease in stock price. In 2024, the ratio increased to 5.92, suggesting a partial reversal of the previous year's trend and a higher valuation of operating profits relative to market price.
- Price to Sales (P/S) Ratio
- The P/S ratio exhibits a clear declining trend from 1.11 in 2020 to 0.28 in 2023, showing a progressively lower price valuation per unit of sales over that period. This trend suggests that either sales increased significantly, stock price decreased, or a combination of both. In 2024, the P/S ratio rose to 0.53, indicating an improvement in price relative to sales, though still below the 2020 level.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio fluctuated over the five-year period. It started at 2.85 in 2020, slightly increased to 3.06 in 2021, then declined to 2.32 in 2022 and further to 1.6 in 2023. This downward trend indicates a decreasing market valuation relative to book value, possibly reflecting less investor confidence or increased book value of assets. In 2024, the ratio rose to 2.38, showing a rebound in the market valuation compared to book value, though it did not reach the initial levels observed in 2020 and 2021.
Price to Earnings (P/E)
United Airlines Holdings Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 327,339,564 | 328,025,881 | 327,092,997 | 324,626,332 | 318,476,280 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in millions) | 3,149) | 2,618) | 737) | (1,964) | (7,069) | |
| Earnings per share (EPS)2 | 9.62 | 7.98 | 2.25 | -6.05 | -22.20 | |
| Share price1, 3 | 92.17 | 45.49 | 48.99 | 47.43 | 53.31 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 9.58 | 5.70 | 21.74 | — | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| FedEx Corp. | 17.21 | 16.11 | 14.80 | 15.07 | 33.43 | |
| Uber Technologies Inc. | 16.83 | 89.56 | — | — | — | |
| Union Pacific Corp. | 21.68 | 23.85 | 17.97 | 23.67 | 25.57 | |
| United Parcel Service Inc. | 17.05 | 18.89 | 13.27 | 14.11 | 104.33 | |
| P/E Ratio, Sector | ||||||
| Transportation | 17.26 | 24.43 | 30.10 | 22.48 | — | |
| P/E Ratio, Industry | ||||||
| Industrials | 28.42 | 24.85 | 36.06 | 35.59 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 3,149,000,000 ÷ 327,339,564 = 9.62
3 Closing price as at the filing date of United Airlines Holdings Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 92.17 ÷ 9.62 = 9.58
5 Click competitor name to see calculations.
The financial data reveals several notable trends concerning the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the five-year period analyzed.
- Share Price
- The share price experienced a decline from 53.31 US dollars at the end of 2020 to 45.49 US dollars by the end of 2023. Subsequently, a significant increase occurred in 2024, with the share price rising sharply to 92.17 US dollars. This indicates a period of relative market weakness followed by a strong recovery or bullish market sentiment in the most recent year.
- Earnings Per Share (EPS)
- The EPS figures show a substantial improvement over the period. The company reported negative EPS in 2020 and 2021, with -22.2 and -6.05 US dollars respectively, indicating losses. From 2022 onwards, the EPS turned positive, increasing from 2.25 US dollars in 2022 to 7.98 US dollars in 2023 and further to 9.62 US dollars in 2024. This trend reflects a significant turnaround in profitability, with earnings steadily rising year over year.
- Price-to-Earnings (P/E) Ratio
- P/E ratio data is absent for 2020 and 2021, likely due to negative EPS in those years which makes P/E calculation less meaningful. For 2022, the P/E ratio stood at 21.74, suggesting market optimism relative to earnings. The ratio dropped considerably to 5.7 in 2023, possibly reflecting either the share price decline or a rapid increase in earnings. In 2024, the P/E ratio increased again to 9.58, aligning with the sharp rise in share price but also reflecting substantial earnings growth.
Overall, the data indicates a recovery trajectory from losses incurred in 2020 and 2021 to sustainable profitability starting in 2022, accompanied by volatile but ultimately improving investor confidence as reflected in the sharp rise in share price and fluctuating P/E ratios.
Price to Operating Profit (P/OP)
United Airlines Holdings Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 327,339,564 | 328,025,881 | 327,092,997 | 324,626,332 | 318,476,280 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | 5,096) | 4,211) | 2,337) | (1,022) | (6,359) | |
| Operating profit per share2 | 15.57 | 12.84 | 7.14 | -3.15 | -19.97 | |
| Share price1, 3 | 92.17 | 45.49 | 48.99 | 47.43 | 53.31 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 5.92 | 3.54 | 6.86 | — | — | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| FedEx Corp. | 13.40 | 13.03 | 9.07 | 13.46 | 17.79 | |
| Uber Technologies Inc. | 59.27 | 152.26 | — | — | — | |
| Union Pacific Corp. | 15.06 | 16.75 | 12.68 | 16.53 | 17.46 | |
| United Parcel Service Inc. | 11.64 | 13.86 | 11.70 | 14.20 | 18.23 | |
| P/OP Ratio, Sector | ||||||
| Transportation | 16.29 | 18.51 | 14.13 | 21.54 | 65.24 | |
| P/OP Ratio, Industry | ||||||
| Industrials | 23.03 | 20.78 | 19.86 | 22.38 | 68.31 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 5,096,000,000 ÷ 327,339,564 = 15.57
3 Closing price as at the filing date of United Airlines Holdings Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 92.17 ÷ 15.57 = 5.92
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced a decline from $53.31 in 2020 to $45.49 in 2023. However, it showed a significant recovery in 2024, nearly doubling to reach $92.17. This indicates a positive market sentiment or improved investor confidence by the end of the latest period.
- Operating Profit Per Share
- Operating profit per share was negative in 2020 and 2021 at -$19.97 and -$3.15 respectively, showing an improvement trend moving into positive territory from 2022 onwards. The values increased steadily from $7.14 in 2022 to $15.57 in 2024, reflecting enhanced operational performance and profitability per share over the analyzed period.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio was not reported for 2020 and 2021 likely due to negative operating profit per share. Starting from 2022, the ratio was 6.86, dropped significantly to 3.54 in 2023, and then increased again to 5.92 in 2024. This fluctuation suggests varying margins between share price valuation and profitability, potentially affected by market conditions or internal company performance dynamics.
Price to Sales (P/S)
United Airlines Holdings Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 327,339,564 | 328,025,881 | 327,092,997 | 324,626,332 | 318,476,280 | |
| Selected Financial Data (US$) | ||||||
| Operating revenue (in millions) | 57,063) | 53,717) | 44,955) | 24,634) | 15,355) | |
| Sales per share2 | 174.32 | 163.76 | 137.44 | 75.88 | 48.21 | |
| Share price1, 3 | 92.17 | 45.49 | 48.99 | 47.43 | 53.31 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.53 | 0.28 | 0.36 | 0.63 | 1.11 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| FedEx Corp. | 0.85 | 0.71 | 0.61 | 0.94 | 0.62 | |
| Uber Technologies Inc. | 3.77 | 4.53 | 2.16 | 3.90 | 9.07 | |
| Union Pacific Corp. | 6.03 | 6.31 | 5.05 | 7.08 | 7.00 | |
| United Parcel Service Inc. | 1.08 | 1.39 | 1.53 | 1.87 | 1.66 | |
| P/S Ratio, Sector | ||||||
| Transportation | 1.70 | 1.78 | 1.42 | 2.03 | 2.19 | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.29 | 2.06 | 1.80 | 2.07 | 2.14 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Operating revenue ÷ No. shares of common stock outstanding
= 57,063,000,000 ÷ 327,339,564 = 174.32
3 Closing price as at the filing date of United Airlines Holdings Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 92.17 ÷ 174.32 = 0.53
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a declining trend from 53.31 US$ at the end of 2020 to a low of 45.49 US$ by the end of 2023. This was followed by a significant increase to 92.17 US$ in 2024, indicating a notable recovery and appreciation in market value during the latest period.
- Sales per Share
- Sales per share showed a consistent growth trajectory throughout the observed periods. Starting at 48.21 US$ in 2020, sales increased substantially each year, reaching 174.32 US$ by 2024. This reflects an expanding revenue base on a per-share basis.
- Price-to-Sales (P/S) Ratio
- The P/S ratio declined steadily from 1.11 in 2020 to a low of 0.28 in 2023, suggesting that the share price grew at a slower rate relative to sales per share during these years. However, in 2024, the P/S ratio rose to 0.53, coinciding with the sharp rise in share price. Overall, the ratio indicates periods where the market valuation was not proportionate to the rapid increase in sales until the recent adjustment.
Price to Book Value (P/BV)
United Airlines Holdings Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 327,339,564 | 328,025,881 | 327,092,997 | 324,626,332 | 318,476,280 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 12,675) | 9,324) | 6,896) | 5,029) | 5,960) | |
| Book value per share (BVPS)2 | 38.72 | 28.42 | 21.08 | 15.49 | 18.71 | |
| Share price1, 3 | 92.17 | 45.49 | 48.99 | 47.43 | 53.31 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 2.38 | 1.60 | 2.32 | 3.06 | 2.85 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| FedEx Corp. | 2.70 | 2.45 | 2.27 | 3.26 | 2.35 | |
| Uber Technologies Inc. | 7.70 | 15.02 | 9.36 | 4.71 | 8.24 | |
| Union Pacific Corp. | 8.66 | 10.29 | 10.34 | 10.90 | 8.07 | |
| United Parcel Service Inc. | 5.90 | 7.32 | 7.75 | 12.76 | 213.26 | |
| P/BV Ratio, Sector | ||||||
| Transportation | 5.40 | 6.69 | 5.91 | 6.92 | 8.09 | |
| P/BV Ratio, Industry | ||||||
| Industrials | 6.68 | 6.85 | 5.50 | 5.44 | 5.89 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 12,675,000,000 ÷ 327,339,564 = 38.72
3 Closing price as at the filing date of United Airlines Holdings Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 92.17 ÷ 38.72 = 2.38
5 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced a decline from $53.31 at the end of 2020 to $45.49 at the end of 2023. However, there was a significant increase to $92.17 in 2024, more than doubling the 2023 value.
- Book Value per Share (BVPS) Trend
- BVPS showed a steady increase over the period analyzed, rising from $18.71 in 2020 to $38.72 in 2024. This represents consistent growth in the company's net asset value per share.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio showed a declining trend from 2.85 in 2020 to 1.6 in 2023, reflecting that the market was valuing the shares at a lower premium over book value. In 2024, the ratio increased sharply to 2.38, indicating a renewed investor confidence and a higher market valuation relative to book value.
- Overall Insights
- The declining share price from 2020 through 2023 contrasts with the steadily increasing book value per share, suggesting the market undervalued the company's net assets during that period. The significant rise in share price and P/BV ratio in 2024 suggests a positive shift in market sentiment or anticipated future growth, leading to a stronger market valuation relative to the company’s book value.