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).
Paying user area
Try for free
Albemarle Corp. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Albemarle Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Current Valuation Ratios
Albemarle Corp., current price multiples
| Albemarle Corp. | Linde plc | Sherwin-Williams Co. | Chemicals | Materials | ||||
|---|---|---|---|---|---|---|---|---|
| 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)
Albemarle Corp., 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).
The analysis of the financial ratios over the five-year period reveals notable fluctuations and trends.
- Price to Earnings (P/E) Ratio
- The P/E ratio started at 14.07 in 2018, slightly increasing to 17.06 in 2019. There was a sharp rise to 48.47 in 2020, followed by an extraordinary spike to 181.56 in 2021. However, in 2022, it dramatically decreased to 11.89. This pattern indicates extreme volatility in the company's earnings valuation, with a particularly high multiple in 2021 that was not sustained.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio mirrored some trends of the P/E ratio, starting at 10.71 in 2018 and increasing to 13.66 in 2019. It experienced a substantial jump to 36.01 in 2020 but unlike the P/E, it decreased to 28.12 in 2021 before falling further to 12.94 in 2022. This suggests variations in how the market values the operating profit relative to the company's price but with less extreme peaks than the P/E ratio.
- Price to Sales (P/S) Ratio
- The P/S ratio showed a gradual decline from 2.89 in 2018 to 2.53 in 2019, then a significant increase to 5.82 in 2020, continuing to rise to 6.75 in 2021 before falling to 4.37 in 2022. This indicates that the company's market value relative to its sales increased markedly during 2020 and 2021, possibly driven by growth expectations, before the market adjusted downwards in the latest year.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio declined from 2.72 in 2018 to 2.31 in 2019, then rose sharply to 4.27 in 2020. It slightly declined to 3.99 in 2021 and experienced a minor increase to 4.01 in 2022. This pattern points to a significant reassessment of the company’s net asset value starting in 2020, maintaining a relatively higher valuation compared to the earlier years.
Overall, the period starting in 2020 signifies notable changes in market valuation multiples, with a general move towards higher ratios despite marked volatility, especially seen in earnings and operating profit metrics. The returns to lower P/E and P/OP ratios in 2022 suggest a market correction or normalization following periods of heightened valuation.
Price to Earnings (P/E)
Albemarle Corp., 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 income attributable to Albemarle Corporation (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| P/E Ratio, Sector | ||||||
| Chemicals | ||||||
| P/E Ratio, Industry | ||||||
| Materials | ||||||
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 income attributable to Albemarle Corporation ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Albemarle Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial metrics over the five-year period reveals significant shifts in market valuation and earnings performance.
- Share Price
- The share price shows a strong upward trend overall, rising from $92.28 at the end of 2018 to $272.79 by the end of 2022. Despite a decline in 2019 to $85.65 and positive recovery in the subsequent years, the most notable growth occurs from 2020 through 2022, indicating increased investor confidence or market optimism during this period.
- Earnings per Share (EPS)
- Earnings per share diminished from $6.56 in 2018 to a low point of $1.06 in 2021, demonstrating a declining profitability trend in the initial four years. However, in 2022, EPS dramatically increased to $22.95, representing a substantial recovery and suggesting improved operational performance or exceptional earnings in that year.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibits considerable volatility. Starting at 14.07 in 2018, it rises through 2019 and peaks at an extremely high level of 181.56 in 2021, reflecting market valuation against earnings that were very low at that time. In 2022, the ratio significantly decreases to 11.89, aligning with the spike in EPS. This reduction implies that the market price in 2022 was supported by stronger earnings rather than speculative expectations.
In summary, the data displays a period of declining earnings through 2021 with simultaneously rising share prices, culminating in an inflated P/E ratio. The year 2022 marks a pronounced turnaround with enhanced earnings, stabilizing the valuation metrics and justifying the higher market price. This may indicate a recovery phase or positive operational changes impacting financial performance.
Price to Operating Profit (P/OP)
Albemarle Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| P/OP Ratio, Sector | ||||||
| Chemicals | ||||||
| P/OP Ratio, Industry | ||||||
| Materials | ||||||
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 profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Albemarle Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The data presents the financial performance and market valuation trends over a five-year period.
- Share Price
- The share price showed a steady increase from 2018 to 2022. Starting at $92.28 in 2018, it experienced a decline in 2019 to $85.65. Subsequently, it rose sharply to $156.17 in 2020, continued to grow to $191.85 in 2021, and reached its highest point at $272.79 in 2022. This indicates a generally positive market sentiment and growing investor confidence, particularly after 2019.
- Operating Profit per Share
- The operating profit per share demonstrated a fluctuating pattern. It decreased from $8.62 in 2018 to $6.27 in 2019, followed by a further drop to $4.34 in 2020. From 2020 onwards, there was a recovery and significant growth, rising to $6.82 in 2021 and sharply increasing to $21.08 in 2022. This trend signals improved operational efficiency or profitability, especially notable in the last year reported.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio shows considerable volatility. It increased from 10.71 in 2018 to 13.66 in 2019, then surged to an elevated level of 36.01 in 2020. It declined to 28.12 in 2021 and substantially decreased further to 12.94 in 2022. This pattern suggests that the market valuation relative to operating profit was significantly stretched in 2020 and 2021, but compressed in 2022 in response to the large increase in operating profit per share.
Overall, the company experienced notable growth in both market valuation and operational profitability from 2020 to 2022. The especially strong increase in operating profit per share in 2022 contributed to a lower valuation multiple, reflecting a potentially more balanced market perception of the company's earnings power relative to its share price. Conversely, earlier years showed a mismatch between share price movements and operating profit trends, particularly during 2020 when valuation ratios reached their peak.
Price to Sales (P/S)
Albemarle Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net sales (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| P/S Ratio, Sector | ||||||
| Chemicals | ||||||
| P/S Ratio, Industry | ||||||
| Materials | ||||||
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 = Net sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Albemarle Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price of the company showed a fluctuating but overall upward trend over the five-year period. It started at $92.28 in 2018, decreased to $85.65 in 2019, then increased significantly to $156.17 in 2020. The upward trajectory continued to $191.85 in 2021 and further to $272.79 in 2022, representing a strong appreciation in market value especially in the last two years.
- Sales Per Share Movement
- Sales per share exhibited some volatility during the analyzed period. It rose slightly from $31.91 in 2018 to $33.80 in 2019, then experienced a notable decline to $26.83 in 2020. A modest recovery followed in 2021 to $28.44, but thereafter, sales per share surged sharply to $62.46 in 2022, more than doubling the previous year's value. This indicates a significant improvement in revenue generation on a per-share basis at the end of the period.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio started at 2.89 in 2018 and maintained a decreasing pattern to 2.53 in 2019, indicating the market priced shares lower relative to sales. In 2020, the ratio jumped sharply to 5.82, and further increased to 6.75 in 2021, signaling an expansion in valuation multiples during these years. However, in 2022, the ratio decreased to 4.37, suggesting a moderation in valuation despite the higher share price and sales per share. This shift could reflect changing market expectations or revised investor perceptions about the company's sales quality or growth prospects.
- Overall Insights
- The data reveals a company whose market valuation has been rising strongly since 2020, driven by both increasing share price and a significant rise in sales per share by 2022. The fluctuating P/S ratio indicates periods of changing investor sentiment and valuation adjustments. The sharp increase in sales per share in 2022 may suggest improved operational performance or changing business conditions favoring revenue growth. The alignment of rising share price and sales per share toward the end of the period points to strengthened financial fundamentals and potentially enhanced market confidence.
Price to Book Value (P/BV)
Albemarle Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Albemarle Corporation shareholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| P/BV Ratio, Sector | ||||||
| Chemicals | ||||||
| P/BV Ratio, Industry | ||||||
| Materials | ||||||
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 Albemarle Corporation shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Albemarle Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several noteworthy trends.
- Share Price
- The share price experienced a decline from US$92.28 at the end of 2018 to US$85.65 in 2019, representing a decrease during that initial period. However, from 2019 onwards, the share price displayed a consistent upward trajectory, increasing significantly to US$156.17 in 2020, then to US$191.85 in 2021, and reaching US$272.79 by the end of 2022. This reflects a strong growth trend in market valuation over the latter four years.
- Book Value per Share (BVPS)
- The book value per share showed a relatively stable pattern in the first three years, beginning at US$33.90 in 2018, increasing modestly to US$37.02 in 2019, and slightly declining to US$36.60 in 2020. From 2020 onward, the BVPS demonstrated a marked increase, rising to US$48.06 in 2021 and advancing further to US$68.11 in 2022. This indicates an improvement in the company’s equity base on a per-share basis in the recent years.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio initially declined from 2.72 in 2018 to 2.31 in 2019, reflecting a lower market valuation relative to the book value. Subsequently, there was a significant increase to 4.27 in 2020, followed by a slight decrease to 3.99 in 2021 and a marginal rise to 4.01 in 2022. This suggests that the market valuation has generally risen relative to its book value, indicating elevated investor confidence or expectations from 2020 onward, despite minor fluctuations.
Overall, the data portrays a company whose market valuation and equity per share have grown substantially over the observed period, particularly after 2019. The increase in share price coupled with the rising BVPS suggests improved financial strength and market perception. The elevated and relatively stable P/BV ratio in recent years further supports the view of favorable investor sentiment towards the company’s prospects.