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
Allergan PLC, current price multiples
| Allergan PLC | 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. | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||
| Current share price (P) | $192.99 | |||||||||||||
| No. shares of common stock outstanding | 329,805,791 | |||||||||||||
| Earnings per share (EPS) | $-15.98 | |||||||||||||
| Operating profit per share | $-13.48 | |||||||||||||
| Sales per share | $48.78 | |||||||||||||
| Book value per share (BVPS) | $176.39 | |||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||
| Price to sales (P/S) | 3.96 | 5.82 | 4.69 | 1.95 | 5.92 | 16.40 | 4.82 | 4.14 | 3.10 | 2.17 | 3.99 | 3.57 | 10.37 | |
| Price to book value (P/BV) | 1.09 | 98.61 | 25.55 | 5.77 | 2.85 | 52.06 | 7.13 | 5.14 | 4.29 | 1.56 | 1.93 | 3.09 | 6.97 | |
Based on: 10-K (reporting date: 2019-12-31).
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)
Allergan PLC, historical price multiples
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
The financial ratios for the company over the period from 2015 to 2019 reveal several notable trends and shifts in valuation metrics.
- Price to Earnings (P/E) Ratio
- The P/E ratio experienced a significant decline from 31.94 in 2015 to 5.6 in 2016. After 2016, no data is available, which limits the analysis for subsequent years. The sharp decrease suggests a notable change in earnings performance or market expectations between 2015 and 2016.
- Price to Operating Profit (P/OP) Ratio
- No data is provided for the entire period, leaving this valuation metric unassessable.
- Price to Sales (P/S) Ratio
- This ratio shows a consistent downward trend from 7.81 in 2015 to a low of 2.93 in 2018, indicating a decreasing market valuation relative to sales over four years. However, in 2019, there is a reversal of this trend with the ratio rising to 4.05, suggesting a partial recovery in market sentiment or sales valuation during that year.
- Price to Book Value (P/BV) Ratio
- Similarly, the P/BV ratio declined steadily from 1.54 in 2015 to 0.71 in 2018, reflecting a decreasing price in relation to the company's book value. In 2019, the ratio increased to 1.12, indicating a rebound in market valuation relative to net asset value.
Overall, the data points to a period of declining valuation multiples from 2015 through 2018, which may imply reduced investor confidence or challenges in earnings, sales, and asset utilization. The partial recovery in 2019 in both the P/S and P/BV ratios could reflect improved market perceptions, enhanced financial performance, or other positive developments affecting valuation.
Price to Earnings (P/E)
Allergan PLC, historical P/E calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,002,015 | 332,614,474 | 330,320,420 | 335,224,713 | 394,687,384 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to ordinary shareholders (in thousands) | (5,271,000) | (5,142,800) | (4,403,900) | 14,695,000) | 3,683,200) | |
| Earnings per share (EPS)2 | -16.02 | -15.46 | -13.33 | 43.84 | 9.33 | |
| Share price1, 3 | 198.00 | 139.07 | 164.04 | 245.37 | 298.07 | |
| Valuation Ratio | ||||||
| P/E ratio4 | — | — | — | 5.60 | 31.94 | |
| 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: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
EPS = Net income (loss) attributable to ordinary shareholders ÷ No. shares of common stock outstanding
= -5,271,000,000 ÷ 329,002,015 = -16.02
3 Closing price as at the filing date of Allergan PLC Annual Report.
4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 198.00 ÷ -16.02 = —
5 Click competitor name to see calculations.
The financial data reveals significant fluctuations and some concerning trends over the five-year period analyzed.
- Share Price
- The share price exhibited a downward trend from 2015 to 2018, declining from $298.07 to $139.07. However, in 2019, the share price showed a recovery, rising to $198. Despite this partial rebound, the price remained substantially below its 2015 peak.
- Earnings per Share (EPS)
- EPS showed considerable volatility over the period. In 2015, EPS was positive at $9.33, followed by an exceptional increase in 2016 to $43.84. However, the following years saw a steep decline, with EPS turning negative in 2017 (-$13.33) and deteriorating further in 2018 (-$15.46) and 2019 (-$16.02). This represents a severe erosion of profitability over the last three years of the period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio was high at 31.94 in 2015, then sharply decreased to 5.6 in 2016, reflecting the spike in earnings that year relative to share price. For subsequent years, the P/E ratio is not provided, likely due to negative earnings, which make the ratio undefined or less meaningful.
In summary, the company experienced a volatile earnings phase with significant earnings growth in 2016 followed by pronounced losses thereafter. The share price trend corresponds with these earnings developments, dropping considerably before showing some recovery in 2019. The missing P/E data for later years aligns with negative EPS, indicating challenges in profitability during that timeframe.
Price to Operating Profit (P/OP)
Allergan PLC, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,002,015 | 332,614,474 | 330,320,420 | 335,224,713 | 394,687,384 | |
| Selected Financial Data (US$) | ||||||
| Operating loss (in thousands) | (4,445,300) | (6,247,600) | (5,921,200) | (1,825,500) | (3,014,500) | |
| Operating profit per share2 | -13.51 | -18.78 | -17.93 | -5.45 | -7.64 | |
| Share price1, 3 | 198.00 | 139.07 | 164.04 | 245.37 | 298.07 | |
| 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: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Operating profit per share = Operating loss ÷ No. shares of common stock outstanding
= -4,445,300,000 ÷ 329,002,015 = -13.51
3 Closing price as at the filing date of Allergan PLC Annual Report.
4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 198.00 ÷ -13.51 = —
5 Click competitor name to see calculations.
The data reflects several important trends regarding the financial performance over the five-year period ending December 31, 2019.
- Share Price
- The share price exhibited a significant decline from US$298.07 in 2015 to US$139.07 in 2018, representing a substantial decrease of more than 50%. However, in 2019, the share price showed a recovery, increasing to US$198, which still remains below the levels observed at the beginning of the period.
- Operating Profit Per Share
- The operating profit per share consistently showed negative values throughout the period, indicating sustained operating losses on a per-share basis. While losses were relatively lower in 2015 (US$-7.64) and 2016 (US$-5.45), these losses deepened significantly in 2017 (US$-17.93) and remained at similarly high loss levels in 2018 (US$-18.78). In 2019, there was an improvement with a reduction in losses to US$-13.51, though the figure still indicates an operating loss.
- Price to Operating Profit (P/OP) Ratio
- Data for the price to operating profit ratio was not provided, limiting the ability to analyze valuation relative to operating profit.
Overall, the financial indicators reveal that the company faced operational challenges throughout the observed period, as evidenced by persistent operating losses per share. The share price trajectory aligns somewhat with the operating performance, declining sharply until 2018 before showing some recovery in 2019. The improvement in 2019’s operating profit per share, although still negative, suggests progress toward operational stability. Nonetheless, the continued losses and share price below earlier levels indicate that operational and market confidence issues persisted by the end of 2019.
Price to Sales (P/S)
Allergan PLC, historical P/S calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,002,015 | 332,614,474 | 330,320,420 | 335,224,713 | 394,687,384 | |
| Selected Financial Data (US$) | ||||||
| Net revenues (in thousands) | 16,088,900) | 15,787,400) | 15,940,700) | 14,570,600) | 15,071,000) | |
| Sales per share2 | 48.90 | 47.46 | 48.26 | 43.47 | 38.18 | |
| Share price1, 3 | 198.00 | 139.07 | 164.04 | 245.37 | 298.07 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 4.05 | 2.93 | 3.40 | 5.65 | 7.81 | |
| 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: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 16,088,900,000 ÷ 329,002,015 = 48.90
3 Closing price as at the filing date of Allergan PLC Annual Report.
4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 198.00 ÷ 48.90 = 4.05
5 Click competitor name to see calculations.
- Share Price
- The share price decreased consistently from 2015 to 2018, falling from $298.07 to a low of $139.07. However, in 2019, there was a notable recovery, with the share price rising to $198. This suggests significant market fluctuations and a partial rebound after a period of decline.
- Sales Per Share
- Sales per share showed a generally positive trend over the five-year period. Beginning at $38.18 in 2015, it increased steadily to $48.26 in 2017, experienced a slight decline to $47.46 in 2018, and then rose again to $48.90 in 2019. This indicates relatively stable and increasing sales revenue per share, with only a minor dip observed in 2018.
- Price-to-Sales (P/S) Ratio
- The price-to-sales ratio declined significantly from 7.81 in 2015 to 2.93 in 2018, reflecting a reduction in market valuation relative to sales. In 2019, the P/S ratio reversed this downward trend slightly, increasing to 4.05. This pattern aligns with the movements in share price, indicating a lower market valuation compared to sales during the middle years, followed by some recovery in investor confidence by 2019.
Price to Book Value (P/BV)
Allergan PLC, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,002,015 | 332,614,474 | 330,320,420 | 335,224,713 | 394,687,384 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in thousands) | 58,173,600) | 65,114,100) | 73,821,100) | 76,192,700) | 76,591,400) | |
| Book value per share (BVPS)2 | 176.82 | 195.76 | 223.48 | 227.29 | 194.06 | |
| Share price1, 3 | 198.00 | 139.07 | 164.04 | 245.37 | 298.07 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.12 | 0.71 | 0.73 | 1.08 | 1.54 | |
| 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: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 58,173,600,000 ÷ 329,002,015 = 176.82
3 Closing price as at the filing date of Allergan PLC Annual Report.
4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 198.00 ÷ 176.82 = 1.12
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a declining trend from 2015 through 2018, decreasing from $298.07 to $139.07, representing a cumulative reduction of over 53%. However, in 2019, the share price rebounded to $198, indicating a partial recovery but still remaining below the initial 2015 level.
- Book Value per Share (BVPS) Trend
- The book value per share experienced a general decline over the five-year period. Starting from $194.06 in 2015, BVPS increased to a peak of $227.29 in 2016, then progressively decreased each year thereafter, reaching $176.82 in 2019. This reveals a deterioration in book value after 2016.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio shows a consistent decrease from 1.54 in 2015 to a low of 0.71 in 2018, indicating that the market price was increasingly undervaluing the company's book value during this period. In 2019, the ratio increased to 1.12, suggesting an improvement in market valuation relative to the book value but still below the 2015 ratio.
- Summary of Insights
- Overall, the data reflects a challenging period between 2015 and 2018, characterized by significant declines in both market price and book value per share. The sharp fall in share price alongside a declining P/BV ratio suggests reduced investor confidence or perceived value. The partial recovery in 2019 indicates a positive shift in market sentiment, potentially due to operational improvements or favorable market conditions, although the company had not returned to its earlier valuation heights.