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. | Occidental Petroleum 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 | 1.42 | 2.26 | 1.43 | 1.67 | |
| Price to book value (P/BV) | 7.42 | 1.80 | 1.91 | 1.84 | 1.31 | |
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).
- Price to earnings (P/E) ratio trends
- The P/E ratio increased notably from 9.2 in 2011 to 15.01 in 2012, followed by a slight decline to 14.3 in 2013. Data for subsequent years are not available, but the initial rising trend indicates a growing market valuation relative to earnings during the early period.
- Price to operating profit (P/OP) ratio trends
- This ratio showed a steady increase over the first three years, starting at 5.08 in 2011 and rising to 6.61 in 2013. The upward trend suggests increasing investor valuation relative to operating profit during this timeframe. No data is provided for later years.
- Price to sales (P/S) ratio trends
- The P/S ratio declined significantly from 2.47 in 2011 to 1.7 in 2012, indicating a decrease in market valuation relative to sales. It then rebounded modestly to 1.91 in 2013 and 1.8 in 2014. In 2015, there was a marked increase to 2.34, suggesting renewed market confidence or sales revaluation at that time.
- Price to book value (P/BV) ratio trends
- The P/BV ratio exhibited a declining trend from 1.43 in 2011 to 0.92 in 2012, remaining relatively stable around 0.94–0.96 through 2013 and 2014. A significant jump occurred in 2015, reaching 5.82, indicating a sharp reassessment of the company's book value by the market or substantial changes in equity valuation.
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. | — | — | — | — | — | |
| Occidental Petroleum 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.
- Share Price Trend
- The share price exhibited a declining trend over the analyzed period. Starting at $107.93 in 2011, it decreased to $73.75 in 2012, then showed a slight recovery to $79.29 in 2013. However, following this brief increase, the share price declined continuously to $65.84 in 2014 and further dropped to $39.47 by the end of 2015.
- Earnings per Share (EPS) Trend
- The EPS showed significant volatility and a downward trajectory. In 2011, it was relatively strong at $11.73 per share, but it declined sharply to $4.91 in 2012. A moderate increase was observed in 2013 with EPS reaching $5.54. However, a substantial deterioration occurred in 2014 and 2015, where EPS turned negative, reaching -$14.34 and sharply dropping further to -$61.11, respectively.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio was 9.2 in 2011 and increased significantly to 15.01 in 2012, indicating a higher price relative to earnings during that year. It slightly decreased to 14.3 in 2013. The P/E ratios for 2014 and 2015 were not available, likely due to negative earnings which typically invalidate this metric.
- Overall Financial Performance Insights
- The data indicates a challenging financial period marked by declining stock valuation and deteriorating profitability. The substantial drop in EPS into negative figures in the last two years is the most prominent concern, reflecting negative earnings performance. The decline in share price aligns with this trend, likely reflecting market response to diminishing earnings. The initial increases in P/E ratio between 2011 and 2012 may reflect stock price adjustments relative to falling earnings, but the lack of data for subsequent years suggests a focus shift given worsening financials.
Price to Operating Profit (P/OP)
Apache Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| 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. | — | — | — | — | — | |
| Occidental Petroleum 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.
- Share price
- The share price of the company experienced a general decline over the five-year period. Starting at $107.93 at the end of 2011, it dropped sharply to $73.75 in 2012. In 2013, a slight recovery is visible with the price increasing to $79.29. However, this was followed by a consistent decrease in subsequent years, reaching $65.84 in 2014 and declining further to $39.47 in 2015. The overall trend indicates significant depreciation in market valuation.
- Operating profit per share
- The operating profit per share displayed a downward trend throughout the period. Initially strong at $21.27 in 2011, it more than halved to $12.54 in 2012 and remained fairly stable around $12.00 in 2013. A critical change occurred in 2014, where the figure turned negative to -$7.64, and this deterioration worsened substantially in 2015, reaching -$73.78. This reveals a severe decline in the company’s operating profitability on a per-share basis.
- Price to Operating Profit ratio (P/OP)
- The P/OP ratio rose from 5.08 in 2011 to 5.88 in 2012, and further to 6.61 in 2013, indicating that the share price was costing more relative to operating profit per share, suggesting potential overvaluation or reduced profitability. No values are available for 2014 and 2015, likely due to the negative operating profit per share, which would render the ratio non-meaningful or undefined.
Price to Sales (P/S)
Apache Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| 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. | — | — | — | — | — | |
| Occidental Petroleum 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.
The analysis of the data reveals several notable trends regarding the share price, sales per share, and the price-to-sales (P/S) ratio over the five-year period.
- Share Price
- The share price exhibited a downward trend overall, starting at $107.93 at the end of 2011 and declining significantly to $39.47 by the end of 2015. The share price showed some fluctuations, with a moderate drop in 2012 to $73.75, a slight recovery in 2013 to $79.29, followed by continued decreases in 2014 and 2015.
- Sales per Share
- Sales per share also displayed a consistent decline throughout the period. Beginning at $43.74 in 2011, the value decreased gradually each year, reaching $16.87 by 2015. This indicates a reduction in revenue generated on a per-share basis, suggesting a decline in operational performance or sales volume.
- Price-to-Sales (P/S) Ratio
- The P/S ratio fluctuated but did not follow the consistent downward trend of sales per share and share price. Starting at a relatively high 2.47 in 2011, it dropped to 1.7 in 2012, rose slightly in 2013 to 1.91, then dipped to 1.8 in 2014 before increasing again to 2.34 in 2015. This suggests that despite the fall in absolute sales and share price, the market valuation per unit of sales improved somewhat toward the end of the period, possibly indicating greater investor confidence or expectations of future performance improvements.
Overall, the data indicates a period of declining operational results as reflected in decreasing sales per share, accompanied by a substantial reduction in share price. However, the fluctuating and somewhat recovering P/S ratio toward the end may point to market optimism or changing investor perceptions independent of recent sales performance.
Price to Book Value (P/BV)
Apache Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 378,297,784 | 376,823,368 | 394,724,983 | 391,758,883 | 384,321,970 | |
| Selected Financial Data (US$) | ||||||
| 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. | — | — | — | — | — | |
| Occidental Petroleum 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.
- Share Price Trend
- The share price experienced a general downward trend over the five-year period. Starting at $107.93 at the end of 2011, it declined significantly to $39.47 by the end of 2015, with minor fluctuations in between. This reflects a substantial loss of market value.
- Book Value Per Share (BVPS) Trend
- The book value per share showed a different pattern. It initially increased from $75.44 in 2011 to a peak of $84.61 in 2013. However, after 2013, BVPS declined sharply, dropping to $6.78 by the end of 2015. This decline suggests impairment or loss in the company’s net asset value per share.
- Price-to-Book Value (P/BV) Ratio Trend
- The Price-to-Book Value ratio started relatively moderate at 1.43 in 2011, indicating the share price was somewhat higher than the book value. It then decreased to below 1.0 from 2012 to 2014, indicating that the share price was lower than the book value during those years. However, in 2015, the P/BV ratio surged sharply to 5.82, driven primarily by the dramatic fall in book value rather than an increase in share price. This suggests a market perception of future growth potential or an anticipation of book value recovery despite the asset value decline.
- Overall Insights
- The combined data reveals a challenging period. The consistent drop in share price and the collapse in book value by 2015 signal financial difficulties or significant asset write-downs. The sharp increase in the P/BV ratio at the end of the period, despite low book value, could imply the market’s speculative expectation or confidence in factors not directly reflected on the balance sheet. Attention should be given to the underlying causes of the sharp decline in book value, as it critically affects both company valuation and investor confidence.