Price to Earnings (P/E)
since 2020
Calculation
Carrier Global Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to common shareowners1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 7, 2023 | 10.48 | = | 44.39 | ÷ | 4.24 | 4.24 | = | 3,534 | ÷ | 834,187,942 | |
| Feb 8, 2022 | 23.68 | = | 46.06 | ÷ | 1.95 | 1.95 | = | 1,664 | ÷ | 855,514,035 | |
| Feb 9, 2021 | 16.34 | = | 37.25 | ÷ | 2.28 | 2.28 | = | 1,982 | ÷ | 869,213,146 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Carrier Global Corp. Annual Report.
- Share Price
- The share price increased from $37.25 in February 2021 to $46.06 in February 2022, representing a notable upward trend. However, in February 2023, the share price slightly declined to $44.39, indicating a modest reduction but remaining higher than the 2021 level.
- Earnings per Share (EPS)
- The EPS demonstrates a decline from $2.28 in February 2021 to $1.95 in February 2022, suggesting a decrease in profitability during this period. This trend reversed in the following year, with EPS more than doubling to $4.24 in February 2023, reflecting a significant improvement in earnings performance.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio increased from 16.34 in February 2021 to 23.68 in February 2022 despite the decline in EPS, which may indicate an elevated market valuation relative to earnings or investor expectations of future growth. By February 2023, the P/E ratio decreased substantially to 10.48, a level lower than in the initial year, likely driven by the surge in EPS combined with a slight drop in share price.
Comparison to Competitors
Carrier Global Corp., P/E, long-term trends, comparison to competitors
| Carrier Global Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 7, 2023 | 10.48 | — | 19.15 | 27.93 | — | 26.97 | 20.48 | 27.59 |
| Feb 8, 2022 | 23.68 | — | 16.82 | 27.77 | — | 23.14 | 16.70 | 36.79 |
| Feb 9, 2021 | 16.34 | — | 36.80 | 37.46 | 19.67 | 29.63 | 13.44 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Sector (Capital Goods)
Carrier Global Corp., P/E, long-term trends, comparison to sector (capital goods)
| Carrier Global Corp. | Capital Goods | |
|---|---|---|
| Feb 7, 2023 | 10.48 | 40.21 |
| Feb 8, 2022 | 23.68 | 57.31 |
| Feb 9, 2021 | 16.34 | 123.55 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Industry (Industrials)
Carrier Global Corp., P/E, long-term trends, comparison to industry (industrials)
| Carrier Global Corp. | Industrials | |
|---|---|---|
| Feb 7, 2023 | 10.48 | 36.06 |
| Feb 8, 2022 | 23.68 | 35.59 |
| Feb 9, 2021 | 16.34 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).