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).
Historical Valuation Ratios (Summary)
Allergan PLC, historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
- Price to earnings (P/E) ratio
- The P/E ratio data is sparse but shows a notable downward trend from 31.94 in March 2016 to a low of 5.2 in December 2016, followed by some fluctuations around values between 5.6 and 6.83 in 2017. After a gap in data, the ratio peaks again at 24.13 in March 2019 but lacks subsequent data points for further assessment. This pattern suggests initially high market valuation relative to earnings, then a significant decline indicating potentially improving earnings or depressed stock price, and a resumed increase in valuation by early 2019.
- Price to operating profit (P/OP) ratio
- There is no available data for the price to operating profit ratio, preventing any analysis of trends or comparative valuation based on operating profit.
- Price to sales (P/S) ratio
- The price to sales ratio shows a general downward trend from 7.81 in March 2016 to a minimum of 2.93 by March 2019, indicating either rising sales, declining market price, or a combination of both. However, a slight recovery is observed in late 2019 with the ratio climbing back to around 3.95 in March 2020. The steady decrease until early 2019 could imply improved sales performance relative to stock price, followed by some revaluation upward in the most recent quarter.
- Price to book value (P/BV) ratio
- The price to book value ratio fluctuates considerably, beginning at 1.66 in March 2015 and declining to as low as 0.69 by March 2018. From that point, there is a gradual recovery, with the ratio reaching values slightly above 1.0 by December 2019 and March 2020. The initial decline suggests the market valued the company below its book value for a period, potentially pointing to concerns about asset value or profitability. The recovery towards and above parity with book value indicates improved market sentiment or asset revaluation during the later periods.
Price to Earnings (P/E)
Allergan PLC, historical P/E calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,805,791 | 329,002,015 | 328,277,336 | 328,032,715 | 327,801,905 | 332,614,474 | 337,285,952 | 339,444,422 | 339,063,627 | 330,320,420 | 332,583,097 | 334,306,189 | 335,867,027 | 335,224,713 | 375,080,162 | 395,952,199 | 395,556,908 | 394,687,384 | 394,124,530 | 393,635,637 | 392,444,638 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to ordinary shareholders (in thousands) | 378,000) | (317,200) | (786,800) | (1,759,000) | (2,408,000) | (4,299,900) | (37,900) | (472,500) | (332,500) | 3,051,700) | (4,025,300) | (795,500) | (2,634,800) | (70,200) | 15,150,400) | (571,300) | 186,100) | (700,500) | 5,231,600) | (312,700) | (535,200) | |||||||
| Earnings per share (EPS)2 | -7.53 | -16.02 | -28.19 | -25.93 | -22.02 | -15.46 | 6.55 | -5.24 | -6.20 | -13.33 | -22.63 | 34.85 | 35.35 | 43.84 | 37.50 | 10.47 | 11.13 | 9.33 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 192.99 | 198.00 | 178.41 | 159.85 | 141.36 | 139.07 | 158.01 | 185.93 | 147.60 | 164.04 | 175.38 | 237.97 | 238.51 | 245.37 | 195.00 | 248.31 | 225.00 | 298.07 | 301.57 | 319.47 | 301.74 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/E ratio4 | — | — | — | — | — | — | 24.13 | — | — | — | — | 6.83 | 6.75 | 5.60 | 5.20 | 23.71 | 20.21 | 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-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2020 Calculation
EPS
= (Net income (loss) attributable to ordinary shareholdersQ1 2020
+ Net income (loss) attributable to ordinary shareholdersQ4 2019
+ Net income (loss) attributable to ordinary shareholdersQ3 2019
+ Net income (loss) attributable to ordinary shareholdersQ2 2019)
÷ No. shares of common stock outstanding
= (378,000,000 + -317,200,000 + -786,800,000 + -1,759,000,000)
÷ 329,805,791 = -7.53
3 Closing price as at the filing date of Allergan PLC Quarterly or Annual Report.
4 Q1 2020 Calculation
P/E ratio = Share price ÷ EPS
= 192.99 ÷ -7.53 = —
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited notable volatility throughout the periods analyzed. Initially, it hovered around the 300 US$ mark in early 2015, with slight fluctuations. However, starting from early 2016, the share price experienced a significant decline, reaching lows near 140 US$ by late 2018. A modest recovery phase followed, with prices rising to approximately 198 US$ by December 2019, before a slight dip occurred in the first quarter of 2020.
- Earnings Per Share (EPS) Analysis
- The EPS figures were unavailable for most of 2015. From the first quarter of 2016, EPS started relatively strong, peaking at 37.5 US$ in December 2016. Subsequently, EPS remained positive but showed a downward trend into 2017 before turning negative in December 2017. The negative EPS persisted through 2018 and 2019, indicating financial challenges or recurring losses. A mild improvement was sensed in the last quarter of 2018, but overall, the EPS fluctuated in the negative zone up to the first quarter of 2020.
- Price to Earnings (P/E) Ratio Observations
- The P/E ratio was absent in 2015 but appeared in early 2016 with values suggesting moderate valuation levels, fluctuating between approximately 5.2 and 31.94. A notable low P/E ratio was observed in late 2016, which correlates with the peak EPS during that time. From 2017 onwards, the P/E ratio data is incomplete, but where present (mid-2018), the ratio spikes near 24, coinciding with declining EPS and share price volatility, suggesting market adjustments to earnings expectations.
- Overall Financial Pattern
- The data reflects a period of financial instability beginning from late 2017 onward, marked by continuous negative earnings per share and fluctuating share prices well below the initial levels of 2015. Despite occasional recoveries in share price, the prevailing negative EPS indicates ongoing profitability challenges. The partial and spotty availability of the P/E ratio limits its contributory insights but aligns overall with the volatility seen in the earnings and share price.
Price to Operating Profit (P/OP)
Allergan PLC, historical P/OP calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,805,791 | 329,002,015 | 328,277,336 | 328,032,715 | 327,801,905 | 332,614,474 | 337,285,952 | 339,444,422 | 339,063,627 | 330,320,420 | 332,583,097 | 334,306,189 | 335,867,027 | 335,224,713 | 375,080,162 | 395,952,199 | 395,556,908 | 394,687,384 | 394,124,530 | 393,635,637 | 392,444,638 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Operating income (loss) (in thousands) | (1,299,600) | (276,600) | (596,600) | (1,262,900) | (2,309,200) | (5,384,100) | 257,500) | (467,000) | (654,000) | (90,500) | (4,022,300) | (902,400) | (906,000) | (900,000) | (266,400) | (487,600) | (171,500) | (830,400) | (1,343,500) | (162,900) | (677,700) | |||||||
| Operating profit per share2 | -10.42 | -13.51 | -29.10 | -26.52 | -24.11 | -18.78 | -2.83 | -15.42 | -16.72 | -17.93 | -20.24 | -8.90 | -7.62 | -5.45 | -4.68 | -7.15 | -6.34 | -7.64 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 192.99 | 198.00 | 178.41 | 159.85 | 141.36 | 139.07 | 158.01 | 185.93 | 147.60 | 164.04 | 175.38 | 237.97 | 238.51 | 245.37 | 195.00 | 248.31 | 225.00 | 298.07 | 301.57 | 319.47 | 301.74 | |||||||
| 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-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2020 Calculation
Operating profit per share
= (Operating income (loss)Q1 2020
+ Operating income (loss)Q4 2019
+ Operating income (loss)Q3 2019
+ Operating income (loss)Q2 2019)
÷ No. shares of common stock outstanding
= (-1,299,600,000 + -276,600,000 + -596,600,000 + -1,262,900,000)
÷ 329,805,791 = -10.42
3 Closing price as at the filing date of Allergan PLC Quarterly or Annual Report.
4 Q1 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 192.99 ÷ -10.42 = —
5 Click competitor name to see calculations.
The data reveals several notable trends in the share price and operating profit per share over the evaluated periods.
- Share Price Trends
- The share price exhibited significant volatility over the period from March 2015 to March 2020. Initially, the share price was relatively high, starting at approximately $301.74 in March 2015, peaking at $319.47 in June 2015, and maintaining values near $298 by the end of 2015. Subsequently, a general downtrend is observed, with prices declining sharply to around $195 by September 2016. Despite some recovery attempts, prices fluctuated, hitting lows near $139 in December 2018 before gradually increasing again to around $198 by December 2019. By March 2020, the share price slightly decreased to approximately $193. Overall, the share price demonstrated a downward trajectory over the five-year period, with periods of partial recovery towards the end of the term.
- Operating Profit Per Share Analysis
- Operating profit per share data is only available starting from the quarter ended December 31, 2015. From this point forward, the figures are negative throughout all reported periods, indicating operating losses on a per-share basis. The losses deepened over time, starting from about -$7.64 in December 2015 and worsening to values as low as approximately -$29.10 in December 2019. There is a notable volatility within these losses, with some quarters showing slight improvements such as the quarter ended December 2018 (-$2.83) amidst a general pattern of increasing losses. The data points to increasing operational challenges affecting profitability on a per-share basis during the observed timeframe.
- Relationship Between Share Price and Operating Profit Per Share
- There appears to be a correlation between the negative operating profit per share and declining share prices. As operating losses expanded, the share price generally trended downward, reflecting investor response to deteriorating profitability metrics. Some quarters show divergence where the share price rebounds modestly despite ongoing losses, potentially due to market factors or speculative activities not directly linked to operational outcomes.
- Missing Data and Its Implications
- The absence of data for the ratio price to operating profit per share (P/OP) and the initial quarters for operating profit per share limits a more comprehensive analysis of valuation metrics. However, the available data sufficiently highlights a period characterized by financial strain and share price depreciation.
Price to Sales (P/S)
Allergan PLC, historical P/S calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,805,791 | 329,002,015 | 328,277,336 | 328,032,715 | 327,801,905 | 332,614,474 | 337,285,952 | 339,444,422 | 339,063,627 | 330,320,420 | 332,583,097 | 334,306,189 | 335,867,027 | 335,224,713 | 375,080,162 | 395,952,199 | 395,556,908 | 394,687,384 | 394,124,530 | 393,635,637 | 392,444,638 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net revenues (in thousands) | 3,604,400) | 4,351,000) | 4,050,700) | 4,090,100) | 3,597,100) | 4,079,700) | 3,911,400) | 4,124,200) | 3,672,100) | 4,326,100) | 4,034,300) | 4,007,400) | 3,572,900) | 3,864,300) | 3,622,200) | 3,684,800) | 3,399,300) | 2,664,500) | 4,088,900) | 5,755,000) | 2,562,600) | |||||||
| Sales per share2 | 48.81 | 48.90 | 48.18 | 47.79 | 47.93 | 47.46 | 47.54 | 47.60 | 47.31 | 48.26 | 46.54 | 45.07 | 43.90 | 43.47 | 35.65 | 34.95 | 40.22 | 38.18 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 192.99 | 198.00 | 178.41 | 159.85 | 141.36 | 139.07 | 158.01 | 185.93 | 147.60 | 164.04 | 175.38 | 237.97 | 238.51 | 245.37 | 195.00 | 248.31 | 225.00 | 298.07 | 301.57 | 319.47 | 301.74 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/S ratio4 | 3.95 | 4.05 | 3.70 | 3.34 | 2.95 | 2.93 | 3.32 | 3.91 | 3.12 | 3.40 | 3.77 | 5.28 | 5.43 | 5.65 | 5.47 | 7.11 | 5.59 | 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-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2020 Calculation
Sales per share
= (Net revenuesQ1 2020
+ Net revenuesQ4 2019
+ Net revenuesQ3 2019
+ Net revenuesQ2 2019)
÷ No. shares of common stock outstanding
= (3,604,400,000 + 4,351,000,000 + 4,050,700,000 + 4,090,100,000)
÷ 329,805,791 = 48.81
3 Closing price as at the filing date of Allergan PLC Quarterly or Annual Report.
4 Q1 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 192.99 ÷ 48.81 = 3.95
5 Click competitor name to see calculations.
- Share Price Trends
- The share price experienced notable fluctuations over the analyzed periods. Initially, there was a decline from a high of approximately $320 in mid-2015 to a lower level near $195 by the third quarter of 2016. A mild recovery followed toward the end of 2016, reaching near $245. Throughout 2017 and 2018, the share price exhibited a generally downward trajectory, moving from around $238 in early 2017 to about $139 by the end of 2018. Entering 2019 and early 2020, the price showed some recovery again, rising to nearly $198 by the fourth quarter of 2019 before a slight drop to approximately $193 in the first quarter of 2020.
- Sales per Share Evolution
- Sales per share data, available from March 2016 onward, indicate an overall stable performance with mild fluctuations. Sales per share started at $38.18 in early 2016 and showed an upward trend reaching about $48.9 by the first quarter of 2020. Minor dips occurred intermittently, but the general trajectory was positive, reflecting steady or slightly increasing sales on a per-share basis.
- Price to Sales (P/S) Ratio Dynamics
- The Price to Sales ratio displayed a downward trend over the course of the periods examined. Initially, in March 2016, the ratio stood at 7.81, then progressively declined to levels near 3.91 by the end of 2018. This declining trend continued into 2019 and early 2020, with the ratio fluctuating around the 3.7 to 4.05 range. This pattern suggests that while sales per share increased moderately, share prices declined more significantly, leading to a compression in the valuation multiple assigned to sales.
- Overall Insights
- The data reveal a period characterized by volatile share prices with a significant downward adjustment from mid-2015 through 2018, partially reversing in late 2019. Meanwhile, sales per share have demonstrated modest growth, implying operational stability or gradual improvement. The declining Price to Sales ratio indicates a market re-rating, where the company's shares command a lower valuation relative to sales than in earlier periods, possibly reflecting changes in market sentiment, sector conditions, or company-specific factors affecting investor confidence.
Price to Book Value (P/BV)
Allergan PLC, historical P/BV calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 329,805,791 | 329,002,015 | 328,277,336 | 328,032,715 | 327,801,905 | 332,614,474 | 337,285,952 | 339,444,422 | 339,063,627 | 330,320,420 | 332,583,097 | 334,306,189 | 335,867,027 | 335,224,713 | 375,080,162 | 395,952,199 | 395,556,908 | 394,687,384 | 394,124,530 | 393,635,637 | 392,444,638 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Shareholders’ equity (in thousands) | 57,997,700) | 58,173,600) | 58,475,200) | 59,674,700) | 61,542,000) | 65,114,100) | 70,507,800) | 71,243,500) | 72,327,900) | 73,821,100) | 71,159,400) | 75,220,400) | 75,188,400) | 76,192,700) | 89,725,900) | 76,643,900) | 77,450,000) | 76,591,400) | 77,473,700) | 72,069,100) | 71,404,800) | |||||||
| Book value per share (BVPS)2 | 175.85 | 176.82 | 178.13 | 181.92 | 187.74 | 195.76 | 209.04 | 209.88 | 213.32 | 223.48 | 213.96 | 225.00 | 223.86 | 227.29 | 239.22 | 193.57 | 195.80 | 194.06 | 196.57 | 183.09 | 181.95 | |||||||
| Share price1, 3 | 192.99 | 198.00 | 178.41 | 159.85 | 141.36 | 139.07 | 158.01 | 185.93 | 147.60 | 164.04 | 175.38 | 237.97 | 238.51 | 245.37 | 195.00 | 248.31 | 225.00 | 298.07 | 301.57 | 319.47 | 301.74 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/BV ratio4 | 1.10 | 1.12 | 1.00 | 0.88 | 0.75 | 0.71 | 0.76 | 0.89 | 0.69 | 0.73 | 0.82 | 1.06 | 1.07 | 1.08 | 0.82 | 1.28 | 1.15 | 1.54 | 1.53 | 1.74 | 1.66 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Amgen Inc. | 14.33 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Bristol-Myers Squibb Co. | 2.77 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Danaher Corp. | 3.68 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Eli Lilly & Co. | 47.73 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Gilead Sciences Inc. | 4.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Johnson & Johnson | 6.46 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Merck & Co. Inc. | 7.43 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Pfizer Inc. | 3.16 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Regeneron Pharmaceuticals Inc. | 5.33 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Thermo Fisher Scientific Inc. | 4.56 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Vertex Pharmaceuticals Inc. | 10.23 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2020 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 57,997,700,000 ÷ 329,805,791 = 175.85
3 Closing price as at the filing date of Allergan PLC Quarterly or Annual Report.
4 Q1 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 192.99 ÷ 175.85 = 1.10
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited substantial volatility between 2015 and early 2020. Initially, during 2015, the price fluctuated around the high 200s to just above 300 US dollars. Moving into 2016, a downward trend appeared with a pronounced drop to as low as approximately 195 US dollars by September 2016, followed by a partial recovery towards the year-end. Throughout 2017 to early 2018, the share price generally declined, reaching lows near 140 US dollars by late 2018. However, from 2019 onward, the share price showed a steady and gradual increase, climbing from roughly 140 US dollars to just below 200 US dollars by March 2020.
- Book Value Per Share (BVPS) Movements
- The book value per share maintained a relatively stable range throughout the observed periods. From 2015 to early 2016, BVPS hovered around the 180 to 195 US dollar range, with some incremental increases seen in mid-2016 where it reached above 230 US dollars. Following this peak, the BVPS slightly declined but remained steady around the low 200s during 2017. In the subsequent years, there was a slow and gradual decline in BVPS, descending towards approximately 175 US dollars by early 2020. Overall, BVPS exhibited minor fluctuations but tended to trend modestly downward over the long term.
- Price-to-Book Value (P/BV) Ratio Analysis
- The price-to-book value ratio saw marked fluctuations corresponding closely to movements in share price relative to BVPS. In 2015, the ratio was consistently above 1.5, indicating the share price was substantially higher than the book value. However, a significant decline took place in 2016, with the ratio dropping below 1, reaching as low as 0.69 by early 2018, suggesting the market price was below the company's book value during that period. Post-2018, a gradual rebound in the ratio occurred, climbing back to around 1.1 by early 2020. This shift reflects improving market sentiment or valuation adjustments relative to the company’s book value.
- Overall Observations
- The data reveals that the share price experienced considerable volatility with a notable downtrend beginning in 2016 through 2018, corresponding with a period when the price-to-book ratio was below 1, signifying potential undervaluation. Despite a relatively steady book value per share, market valuation fell significantly during this time. From 2019 forward, both the share price and price-to-book ratio increased, indicating a recovery in market confidence or performance factors driving valuation higher. The book value per share, while declining gradually, remained fairly stable, suggesting that intrinsic company value did not deteriorate as sharply as the market price indicated during the downturn period.