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
AstraZeneca PLC, current price multiples
| AstraZeneca 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. | Zoetis Inc. | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||
| Current share price (P) | $64.57 | |||||||||||||
| No. shares of common stock outstanding | 1,263,143,338 | |||||||||||||
| Growth rate (g) | -2.80% | |||||||||||||
| Earnings per share (EPS) | $0.98 | |||||||||||||
| Next year expected EPS | $0.95 | |||||||||||||
| Operating profit per share | $1.69 | |||||||||||||
| Sales per share | $20.66 | |||||||||||||
| Book value per share (BVPS) | $15.54 | |||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||
| Price to earnings (P/E) | 66.15 | 57.98 | 21.54 | 11.33 | 38.51 | 133.00 | 14.39 | 10.01 | 910.36 | 67.69 | 24.52 | 36.48 | 30.95 | |
| Price to next year expected earnings | 68.05 | 72.27 | 14.88 | 11.04 | 35.14 | 89.86 | — | 8.85 | — | 61.73 | 19.65 | 31.84 | 22.85 | |
| Price to operating profit (P/OP) | 38.17 | 22.10 | 18.32 | 12.48 | 35.11 | 107.92 | 10.72 | 16.60 | 141.10 | 646.07 | 23.95 | 31.89 | 24.05 | |
| Price to sales (P/S) | 3.13 | 5.19 | 5.38 | 2.02 | 7.64 | 20.42 | 3.03 | 4.13 | 5.53 | 2.45 | 7.39 | 5.10 | 8.49 | |
| Price to book value (P/BV) | 4.16 | 27.22 | 23.22 | 3.09 | 3.41 | 64.70 | 3.57 | 5.12 | 8.84 | 1.61 | 3.73 | 4.68 | 14.52 | |
Based on: 20-F (reporting date: 2014-12-31).
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)
AstraZeneca PLC, historical price multiples
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | AstraZeneca PLC P/E ratio increased from 2012 to 2013 and from 2013 to 2014. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | AstraZeneca PLC P/OP ratio increased from 2012 to 2013 and from 2013 to 2014. |
| 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. | AstraZeneca PLC P/S ratio increased from 2012 to 2013 but then slightly decreased from 2013 to 2014. |
| 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. | AstraZeneca PLC P/BV ratio increased from 2012 to 2013 and from 2013 to 2014. |
Price to Earnings (P/E)
AstraZeneca PLC, historical P/E calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,263,143,338 | 1,257,170,087 | 1,246,779,548 | 1,292,355,052 | 1,409,023,452 | |
| Selected Financial Data (US$) | ||||||
| Profit attributable to owners of the Parent (in millions) | 1,233) | 2,556) | 6,297) | 9,983) | 8,053) | |
| Earnings per share (EPS)2 | 0.98 | 2.03 | 5.05 | 7.72 | 5.72 | |
| Share price1, 3 | 64.57 | 64.85 | 49.62 | 44.67 | 49.90 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 66.15 | 31.90 | 9.82 | 5.78 | 8.73 | |
| 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. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 Data adjusted for splits and stock dividends.
2 2014 Calculation
EPS = Profit attributable to owners of the Parent ÷ No. shares of common stock outstanding
= 1,233,000,000 ÷ 1,263,143,338 = 0.98
3 Closing price as at the filing date of AstraZeneca PLC Annual Report.
4 2014 Calculation
P/E ratio = Share price ÷ EPS
= 64.57 ÷ 0.98 = 66.15
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | AstraZeneca PLC P/E ratio increased from 2012 to 2013 and from 2013 to 2014. |
Price to Operating Profit (P/OP)
AstraZeneca PLC, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,263,143,338 | 1,257,170,087 | 1,246,779,548 | 1,292,355,052 | 1,409,023,452 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 2,137) | 3,712) | 8,148) | 12,795) | 11,494) | |
| Operating profit per share2 | 1.69 | 2.95 | 6.54 | 9.90 | 8.16 | |
| Share price1, 3 | 64.57 | 64.85 | 49.62 | 44.67 | 49.90 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 38.17 | 21.96 | 7.59 | 4.51 | 6.12 | |
| 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. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 Data adjusted for splits and stock dividends.
2 2014 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 2,137,000,000 ÷ 1,263,143,338 = 1.69
3 Closing price as at the filing date of AstraZeneca PLC Annual Report.
4 2014 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 64.57 ÷ 1.69 = 38.17
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | AstraZeneca PLC P/OP ratio increased from 2012 to 2013 and from 2013 to 2014. |
Price to Sales (P/S)
AstraZeneca PLC, historical P/S calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,263,143,338 | 1,257,170,087 | 1,246,779,548 | 1,292,355,052 | 1,409,023,452 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | 26,095) | 25,711) | 27,973) | 33,591) | 33,269) | |
| Sales per share2 | 20.66 | 20.45 | 22.44 | 25.99 | 23.61 | |
| Share price1, 3 | 64.57 | 64.85 | 49.62 | 44.67 | 49.90 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 3.13 | 3.17 | 2.21 | 1.72 | 2.11 | |
| 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. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 Data adjusted for splits and stock dividends.
2 2014 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 26,095,000,000 ÷ 1,263,143,338 = 20.66
3 Closing price as at the filing date of AstraZeneca PLC Annual Report.
4 2014 Calculation
P/S ratio = Share price ÷ Sales per share
= 64.57 ÷ 20.66 = 3.13
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. | AstraZeneca PLC P/S ratio increased from 2012 to 2013 but then slightly decreased from 2013 to 2014. |
Price to Book Value (P/BV)
AstraZeneca PLC, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,263,143,338 | 1,257,170,087 | 1,246,779,548 | 1,292,355,052 | 1,409,023,452 | |
| Selected Financial Data (US$) | ||||||
| Capital and reserves attributable to equity holders of the Company (in millions) | 19,627) | 23,224) | 23,737) | 23,246) | 23,213) | |
| Book value per share (BVPS)2 | 15.54 | 18.47 | 19.04 | 17.99 | 16.47 | |
| Share price1, 3 | 64.57 | 64.85 | 49.62 | 44.67 | 49.90 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 4.16 | 3.51 | 2.61 | 2.48 | 3.03 | |
| 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. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 Data adjusted for splits and stock dividends.
2 2014 Calculation
BVPS = Capital and reserves attributable to equity holders of the Company ÷ No. shares of common stock outstanding
= 19,627,000,000 ÷ 1,263,143,338 = 15.54
3 Closing price as at the filing date of AstraZeneca PLC Annual Report.
4 2014 Calculation
P/BV ratio = Share price ÷ BVPS
= 64.57 ÷ 15.54 = 4.16
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. | AstraZeneca PLC P/BV ratio increased from 2012 to 2013 and from 2013 to 2014. |