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
Apache Corp., current price multiples
| Apache Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Marathon Petroleum Corp. | Occidental Petroleum Corp. | Valero Energy Corp. | ||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $50.18 | |||||||
| No. shares of common stock outstanding | 379,423,069 | |||||||
| Earnings per share (EPS) | $-60.93 | |||||||
| Operating profit per share | $-73.56 | |||||||
| Sales per share | $16.82 | |||||||
| Book value per share (BVPS) | $6.76 | |||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to sales (P/S) | 2.98 | 1.54 | 2.71 | 1.44 | 0.48 | 2.10 | 0.38 | |
| Price to book value (P/BV) | 7.42 | 1.89 | 3.09 | 2.35 | 2.95 | 1.96 | 2.11 | |
Based on: 10-K (reporting date: 2015-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Apache Corp., historical price multiples
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Apache Corp. P/S ratio decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Apache Corp. P/BV ratio increased from 2013 to 2014 and from 2014 to 2015. |
Price to Earnings (P/E)
Apache Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| Income (loss) attributable to common stock (in millions) | (23,119) | (5,403) | 2,188) | 1,925) | 4,508) | |
| Earnings per share (EPS)2 | -61.11 | -14.34 | 5.54 | 4.91 | 11.73 | |
| Share price1, 3 | 39.47 | 65.84 | 79.29 | 73.75 | 107.93 | |
| Valuation Ratio | ||||||
| P/E ratio4 | — | — | 14.30 | 15.01 | 9.20 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
EPS = Income (loss) attributable to common stock ÷ No. shares of common stock outstanding
= -23,119,000,000 ÷ 378,297,784 = -61.11
3 Closing price as at the filing date of Apache Corp. Annual Report.
4 2015 Calculation
P/E ratio = Share price ÷ EPS
= 39.47 ÷ -61.11 = —
5 Click competitor name to see calculations.
Price to Operating Profit (P/OP)
Apache Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | (27,910) | (2,878) | 4,738) | 4,911) | 8,173) | |
| Operating profit per share2 | -73.78 | -7.64 | 12.00 | 12.54 | 21.27 | |
| Share price1, 3 | 39.47 | 65.84 | 79.29 | 73.75 | 107.93 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | — | — | 6.61 | 5.88 | 5.08 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= -27,910,000,000 ÷ 378,297,784 = -73.78
3 Closing price as at the filing date of Apache Corp. Annual Report.
4 2015 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 39.47 ÷ -73.78 = —
5 Click competitor name to see calculations.
Price to Sales (P/S)
Apache Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| Oil and gas production revenues (in millions) | 6,383) | 13,749) | 16,402) | 16,947) | 16,810) | |
| Sales per share2 | 16.87 | 36.49 | 41.55 | 43.26 | 43.74 | |
| Share price1, 3 | 39.47 | 65.84 | 79.29 | 73.75 | 107.93 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 2.34 | 1.80 | 1.91 | 1.70 | 2.47 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Sales per share = Oil and gas production revenues ÷ No. shares of common stock outstanding
= 6,383,000,000 ÷ 378,297,784 = 16.87
3 Closing price as at the filing date of Apache Corp. Annual Report.
4 2015 Calculation
P/S ratio = Share price ÷ Sales per share
= 39.47 ÷ 16.87 = 2.34
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Apache Corp. P/S ratio decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level. |
Price to Book Value (P/BV)
Apache Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| Total Apache shareholders’ equity (in millions) | 2,566) | 25,937) | 33,396) | 31,331) | 28,993) | |
| Book value per share (BVPS)2 | 6.78 | 68.83 | 84.61 | 79.98 | 75.44 | |
| Share price1, 3 | 39.47 | 65.84 | 79.29 | 73.75 | 107.93 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 5.82 | 0.96 | 0.94 | 0.92 | 1.43 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
BVPS = Total Apache shareholders’ equity ÷ No. shares of common stock outstanding
= 2,566,000,000 ÷ 378,297,784 = 6.78
3 Closing price as at the filing date of Apache Corp. Annual Report.
4 2015 Calculation
P/BV ratio = Share price ÷ BVPS
= 39.47 ÷ 6.78 = 5.82
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Apache Corp. P/BV ratio increased from 2013 to 2014 and from 2014 to 2015. |