Price to Earnings (P/E)
since 2005
Calculation
Boston Scientific Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) available to common stockholders1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 23, 2023 | 105.44 | = | 47.18 | ÷ | 0.45 | 0.45 | = | 642 | ÷ | 1,434,780,104 | |
| Feb 23, 2022 | 63.31 | = | 43.71 | ÷ | 0.69 | 0.69 | = | 985 | ÷ | 1,426,724,712 | |
| Feb 23, 2021 | — | = | 38.75 | ÷ | -0.08 | -0.08 | = | -115 | ÷ | 1,417,165,707 | |
| Feb 25, 2020 | 11.86 | = | 39.91 | ÷ | 3.37 | 3.37 | = | 4,700 | ÷ | 1,396,195,349 | |
| Feb 19, 2019 | 33.06 | = | 39.86 | ÷ | 1.21 | 1.21 | = | 1,671 | ÷ | 1,385,961,926 | |
| Feb 20, 2018 | 354.70 | = | 26.83 | ÷ | 0.08 | 0.08 | = | 104 | ÷ | 1,374,910,797 | |
| Feb 23, 2017 | 96.19 | = | 24.48 | ÷ | 0.25 | 0.25 | = | 347 | ÷ | 1,363,488,640 | |
| Feb 24, 2016 | — | = | 17.33 | ÷ | -0.18 | -0.18 | = | -239 | ÷ | 1,348,346,253 | |
| Feb 25, 2015 | — | = | 16.92 | ÷ | -0.09 | -0.09 | = | -119 | ÷ | 1,330,512,367 | |
| Feb 26, 2014 | — | = | 13.34 | ÷ | -0.09 | -0.09 | = | -121 | ÷ | 1,324,192,809 | |
| Feb 22, 2013 | — | = | 7.37 | ÷ | -3.00 | -3.00 | = | -4,068 | ÷ | 1,357,426,289 | |
| Feb 17, 2012 | 20.04 | = | 6.09 | ÷ | 0.30 | 0.30 | = | 441 | ÷ | 1,451,346,240 | |
| Feb 17, 2011 | — | = | 7.40 | ÷ | -0.70 | -0.70 | = | -1,065 | ÷ | 1,523,368,979 | |
| Feb 26, 2010 | — | = | 7.74 | ÷ | -0.68 | -0.68 | = | -1,025 | ÷ | 1,511,368,790 | |
| Feb 27, 2009 | — | = | 7.02 | ÷ | -1.36 | -1.36 | = | -2,036 | ÷ | 1,502,237,400 | |
| Feb 28, 2008 | — | = | 12.72 | ÷ | -0.33 | -0.33 | = | -495 | ÷ | 1,492,320,521 | |
| Mar 1, 2007 | — | = | 16.21 | ÷ | -2.42 | -2.42 | = | -3,577 | ÷ | 1,480,340,219 | |
| Mar 1, 2006 | 31.40 | = | 24.00 | ÷ | 0.76 | 0.76 | = | 628 | ÷ | 821,567,300 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 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), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Boston Scientific Corp. Annual Report.
The share price experienced a significant contraction between 2006 and 2012, declining from 24.00 to a low of 6.09. Following this period, a consistent and robust recovery trend is observed, with the price appreciating to 47.18 by 2023. This long-term growth phase is characterized by a steady climb in market value, despite intermittent volatility in underlying earnings.
- Earnings per Share (EPS) Volatility
- Earnings exhibited extreme instability for over a decade. Negative EPS was recorded for the majority of the period between 2007 and 2016, with a notable nadir in 2013 at -3.00. A transition toward consistent profitability began in 2017, peaking in 2020 with an EPS of 3.37, before experiencing a brief return to negative territory in 2021 and a subsequent recovery in 2022 and 2023.
- P/E Ratio Fluctuations
- The P/E ratio is frequently absent during the analysis period, directly corresponding to years of negative earnings where the ratio is mathematically non-meaningful. In periods of profitability, the ratio demonstrated extreme variance. A significant peak occurred in 2018 at 354.70, indicating a substantial premium in share price relative to a marginal EPS of 0.08. Conversely, the ratio reached a period low of 11.86 in 2020, coinciding with the highest recorded EPS.
- Valuation Convergence and Divergence
- A divergence between share price and earnings is evident in the most recent data. While the share price reached its historical peak of 47.18 in 2023, the EPS of 0.45 resulted in an expanded P/E ratio of 105.44. This suggests that the market is pricing in significant future growth expectations or attributing a high premium to the stock that is not currently supported by immediate earnings levels.
Overall, the financial trajectory is defined by a recovery from a period of chronic earnings deficits to a state of higher market valuation. The expansion of the P/E ratio in the final years of the sequence indicates a shift from valuation based on current earnings to valuation based on speculative or future growth potential.
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Comparison to Competitors
Boston Scientific Corp., P/E, long-term trends, comparison to competitors
| Boston Scientific Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Feb 23, 2023 | 105.44 | 26.76 | 9,358,713.46 | 64.99 | 23.38 | 22.46 |
| Feb 23, 2022 | 63.31 | 29.13 | 18.13 | 59.94 | 46.56 | 26.03 |
| Feb 23, 2021 | — | 48.49 | 15.87 | 87.47 | 26.30 | 20.54 |
| Feb 25, 2020 | 11.86 | 41.83 | 15.96 | 48.72 | 28.78 | 20.48 |
| Feb 19, 2019 | 33.06 | 56.47 | 21.45 | 53.03 | 37.80 | 21.09 |
| Feb 20, 2018 | 354.70 | 220.29 | 15.44 | 70.95 | 29.96 | 20.77 |
| Feb 23, 2017 | 96.19 | 55.16 | 17.48 | 37.16 | 33.17 | 21.73 |
| Feb 24, 2016 | — | 12.83 | 12.99 | 34.24 | 40.56 | 18.18 |
| Feb 25, 2015 | — | 31.30 | 15.29 | 44.77 | 20.75 | 18.50 |
| Feb 26, 2014 | — | 23.25 | 9.95 | 22.82 | 14.99 | 12.35 |
| Feb 22, 2013 | — | 9.24 | 7.09 | 35.05 | 10.57 | 10.58 |
| Feb 17, 2012 | 20.04 | 18.67 | 8.36 | 39.05 | 13.37 | 10.78 |
| Feb 17, 2011 | — | 15.68 | 8.74 | 33.85 | 12.65 | 10.01 |
| Feb 26, 2010 | — | 14.69 | 5.53 | 54.30 | 17.11 | 9.91 |
| Feb 27, 2009 | — | 17.11 | 8.26 | 21.99 | 26.02 | 11.66 |
| Feb 28, 2008 | — | 23.82 | 12.02 | 79.87 | 20.81 | 12.85 |
| Mar 1, 2007 | — | 48.17 | 16.05 | 58.08 | 21.31 | 17.58 |
| Mar 1, 2006 | 31.40 | 20.03 | 20.66 | 36.68 | 35.12 | 24.20 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 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), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Boston Scientific Corp., P/E, long-term trends, comparison to sector (health care equipment & services)
| Boston Scientific Corp. | Health Care Equipment & Services | |
|---|---|---|
| Feb 23, 2023 | 105.44 | 1,429,718.32 |
| Feb 23, 2022 | 63.31 | 28.98 |
| Feb 23, 2021 | — | 27.23 |
| Feb 25, 2020 | 11.86 | 25.22 |
| Feb 19, 2019 | 33.06 | 28.84 |
| Feb 20, 2018 | 354.70 | 28.17 |
| Feb 23, 2017 | 96.19 | 27.54 |
| Feb 24, 2016 | — | 20.20 |
| Feb 25, 2015 | — | 21.28 |
| Feb 26, 2014 | — | 14.93 |
| Feb 22, 2013 | — | 10.51 |
| Feb 17, 2012 | 20.04 | 14.07 |
| Feb 17, 2011 | — | 12.56 |
| Feb 26, 2010 | — | 11.86 |
| Feb 27, 2009 | — | 15.75 |
| Feb 28, 2008 | — | 17.58 |
| Mar 1, 2007 | — | 22.77 |
| Mar 1, 2006 | 31.40 | 24.03 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 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), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Boston Scientific Corp., P/E, long-term trends, comparison to industry (health care)
| Boston Scientific Corp. | Health Care | |
|---|---|---|
| Feb 23, 2023 | 105.44 | 351,256.81 |
| Feb 23, 2022 | 63.31 | 21.55 |
| Feb 23, 2021 | — | 32.22 |
| Feb 25, 2020 | 11.86 | 22.09 |
| Feb 19, 2019 | 33.06 | 24.32 |
| Feb 20, 2018 | 354.70 | 33.04 |
| Feb 23, 2017 | 96.19 | 21.90 |
| Feb 24, 2016 | — | 19.53 |
| Feb 25, 2015 | — | 21.38 |
| Feb 26, 2014 | — | 18.67 |
| Feb 22, 2013 | — | 15.77 |
| Feb 17, 2012 | 20.04 | 15.79 |
| Feb 17, 2011 | — | 15.12 |
| Feb 26, 2010 | — | 11.71 |
| Feb 27, 2009 | — | 13.07 |
| Feb 28, 2008 | — | 19.29 |
| Mar 1, 2007 | — | 18.61 |
| Mar 1, 2006 | 31.40 | 21.71 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 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), 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).