Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Aggregate Accruals
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Historical Valuation Ratios (Summary)
Allergan Inc., historical price multiples (quarterly data)
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio shows an increasing trend from early 2011 through the end of 2014. Starting at approximately 27.79 in the first quarter of 2011, the ratio rises gradually, with minor fluctuations, reaching about 45.53 by the last quarter of 2014. Notable increases occur toward the end of 2013 and continue into 2014, suggesting a rising market valuation relative to earnings over this period.
- Price to Operating Profit (P/OP) Ratio
- This ratio fluctuates more markedly compared to the P/E ratio. Initially high in early 2011 with values near 96.58 and 84.78, it drastically reduces to the range of 15 to 20 through 2011 to mid-2013. Following this period, a gradual upward movement is observed, with the ratio increasing from around 20.71 at the end of 2013 to approximately 34.53 by late 2014. These changes suggest periods of varying operational profitability relative to price, including a significant improvement in operating profit performance up to 2013, followed by a moderate valuation increase relative to operating profit.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio demonstrates a consistent upward trajectory throughout the time frame. Starting near 4.97 in early 2011, the ratio exhibits steady growth with slight short-term variations, reaching 9.74 by the last quarter of 2014. This steady increase indicates an improving market valuation relative to sales, implying investor confidence in sales growth or pricing power over the period.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio generally trends upward, though with fluctuations. Beginning around 5.08 in early 2011, it shows modest decline and recovery cycles but moves upward overall, culminating at 8.95 by the end of 2014. The ratio trends upwards notably from early 2013 onwards, reflecting increased investor valuation of the company’s net assets, possibly linked to improved asset quality or market sentiment.
- Overall Insights
- The financial ratios point to an overall rising valuation of the company over the analyzed period, with increasing price multiples relative to earnings, operating profit, sales, and book value. While operational profitability (as indicated by P/OP) experienced some volatility, the market consistently assigned higher value multiples to the company’s financial metrics. This could indicate growing investor confidence and expectations of improved future financial performance. The marked increases in price to sales and price to book ratios imply positive market sentiment toward growth and asset valuation. The data reveal a strengthened market position from 2011 through 2014.
Price to Earnings (P/E)
Allergan Inc., historical P/E calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Net earnings (loss) attributable to Allergan, Inc. (in thousands) | |||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
EPS
= (Net earnings (loss) attributable to Allergan, Inc.Q4 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q3 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q2 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q1 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analyzed quarterly financial data reveals several notable trends in the company's share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed periods.
- Share Price
- The share price demonstrated a generally upward trajectory from March 2011 through December 2014. Beginning at approximately $81.06 in the first quarter of 2011, the price showed minor fluctuations initially but increased steadily, reaching $231.12 by the last quarter of 2014. The most significant growth in share price occurred during 2014, particularly in the fourth quarter, where the price ascended sharply from $196.32 to $231.12. This overall appreciation reflects positive market sentiment and potentially improved company performance or investor confidence during this timeframe.
- Earnings Per Share (EPS)
- The EPS exhibited substantial growth over the period analyzed. Initially, EPS was negative in early 2011, indicating a loss of $0.03 per share in the first quarter and a minimal loss in the second quarter. From the third quarter of 2011 onward, EPS turned positive and increased steadily, climbing from $3.01 to $5.08 by the last quarter of 2014. The consistent rise in EPS suggests improved profitability and operational effectiveness, supporting the upward movement observed in the share price.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio showed volatility with a general upward trend, interspersed with some fluctuations. Data availability begins in the third quarter of 2011, with a P/E around 27.79, increasing in the following quarters and peaking near 45.53 by the last quarter of 2014. Despite some decreases in mid-periods, the rise in P/E ratio toward the end of the period signals higher market valuation relative to earnings, indicating elevated investor expectations for future growth or profitability.
In summary, the data indicates a strong improvement in financial performance as evidenced by rising EPS, which is accompanied by a substantial increase in share price. The rising P/E ratio toward the end of the period suggests growing investor confidence and possibly heightened expectations for the company's future earnings potential. These trends collectively reflect a positive growth environment for the company during the period analyzed.
Price to Operating Profit (P/OP)
Allergan Inc., historical P/OP calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Operating income (loss) (in thousands) | |||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
Operating profit per share
= (Operating income (loss)Q4 2014
+ Operating income (loss)Q3 2014
+ Operating income (loss)Q2 2014
+ Operating income (loss)Q1 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analyzed financial data reveals several notable trends in the quarterly performance indicators over the examined periods.
- Share Price
- The share price demonstrated an overall upward trajectory from March 2011 through December 2014. Initially fluctuating moderately in the range of approximately $80 to $90 during 2011 and early 2012, a gradual increase is observed with occasional dips. By the end of 2012, the share price showed a marked rise, reaching around $107. This positive momentum accelerated significantly in 2013 and 2014, with the price nearly doubling to exceed $230 by the last quarter of 2014, indicating strong market confidence or positive company developments during this later period.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed consistent growth over the reported quarters. Starting from low values below $1 in early 2011, there was a significant jump to values above $4 in late 2011, reflecting a substantial improvement in operational profitability. From 2012 onward, the OPPS continued to increase incrementally, fluctuating but trending upward, peaking near $6.7 by the end of 2014. This steady enhancement in operating profit per share suggests improved operational efficiency and sustained profit generation capacity.
- Price to Operating Profit Ratio (P/OP)
- The price-to-operating profit ratio exhibited a downward trend in early periods, decreasing from a very high 96.58 in March 2011 to lower levels around 16 to 20 in 2012 and early 2013, reflecting a normalization after an initially high premium attached to operating profits. Following this period, the ratio displayed greater volatility and an upward trend during 2013 and 2014, rising from approximately 15 to above 34 by the final quarter of 2014. This increase in the ratio despite steadily growing operating profit per share suggests that the share price growth outpaced the growth in operating profits, potentially indicating heightened investor expectations or valuation expansion relative to operating earnings.
Overall, the data reveals a maturing company with improving profitability metrics and a strong share price appreciation that may reflect positive market sentiment and operational improvements. However, the rising P/OP ratio in later periods warrants attention as it could imply that the share price is becoming increasingly sensitive to expectations rather than purely fundamental operating profit growth.
Price to Sales (P/S)
Allergan Inc., historical P/S calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Product net sales (in thousands) | |||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
Sales per share
= (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals significant trends regarding the company's market valuation and operational performance over a four-year period, from March 2011 through December 2014.
- Share Price
-
The share price demonstrates a general upward trajectory with some periodic fluctuations. It started at $81.06 in March 2011 and steadily increased to $107.05 by December 2012, showing moderate growth in the first two years. However, from early 2013 onward, the share price experienced more volatility but with a pronounced upward momentum, reaching a peak of $231.12 by December 2014. This notable increase in the latter half of the period may indicate improving market confidence or positive developments within the company or sector.
- Sales per Share
-
Sales per share displayed a consistent and gradual increase throughout the entire period, reflecting steady operational growth. Beginning at $16.30 in March 2011, sales per share rose incrementally each quarter, culminating at $23.73 by December 2014. This continuous rise suggests improved revenue generation on a per-share basis, likely underpinning the company's enhanced valuation reflected in the share price increase.
- Price-to-Sales Ratio (P/S)
-
The P/S ratio exhibited more variability compared to the other indicators, with an overall upward trend toward the end of the observed period. Initially, it fluctuated slightly between approximately 4.65 and 5.59 from March 2011 to December 2012. Starting in 2013, the ratio showed more pronounced increases, reaching a high of 9.74 by December 2014. This rise in the P/S ratio suggests that the market valuation grew disproportionately faster than sales per share, indicating heightened investor expectations or increased market optimism regarding future growth prospects.
In summary, the data reflects a positive performance trend with steadily increasing sales per share and a significant appreciation in share price, especially in the latter years. The rising P/S ratio toward the end of the period points to a growing premium placed by investors on the company's revenue base, possibly driven by strategic developments or favorable market conditions.
Price to Book Value (P/BV)
Allergan Inc., historical P/BV calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Total Allergan, Inc. stockholders’ equity (in thousands) | |||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||
| Johnson & Johnson | |||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
BVPS = Total Allergan, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a general upward trajectory over the observed periods. Starting at $81.06 in March 2011, it experienced fluctuations but notably increased to reach $231.12 by December 2014. Notable rises were observed particularly in late 2012 and throughout 2014, indicating periods of strong market confidence or positive performance perceptions.
- Book Value Per Share (BVPS) Trend
- BVPS showed a steady and consistent increase over the timeframe. Beginning at $15.96 in March 2011, it rose gradually each quarter, culminating at $25.82 by December 2014. This steady increase suggests continuous growth in the company's net asset value per share.
- Price-to-Book Value (P/BV) Ratio Analysis
- The P/BV ratio fluctuated throughout the periods but exhibited an overall increasing trend, rising from 5.08 in March 2011 to 8.95 in December 2014. Despite some interim declines, the ratio peaked above 8 during 2014, indicating that the market price was increasingly valuing the company at a higher multiple of its book value. This could imply heightened market expectations for future growth or profitability relative to the company’s recorded net assets.
- Interrelations and Insights
- The steady increase in BVPS alongside a generally rising share price suggests a robust underlying growth in company value. However, the disproportionately larger increase in the share price compared to the book value, reflected in the rising P/BV ratio, might indicate a growing premium assigned by investors. Carefully monitoring this multiple is important as elevated ratios may reflect expectations that need to be fulfilled to sustain valuation levels.