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.
The analysis of valuation metrics indicates a period of significant volatility in the Price-to-Earnings (P/E) ratio between 2021 and 2023, driven by diverging trends between share price movements and underlying profitability.
- Share Price Trends
- The share price exhibited an initial upward trajectory, increasing from US$ 37.25 in February 2021 to a peak of US$ 46.06 in February 2022. A marginal correction occurred by February 2023, with the price settling at US$ 44.39, though it remained substantially higher than the 2021 baseline.
- Earnings Per Share (EPS) Performance
- Earnings per share experienced a slight contraction from US$ 2.28 in 2021 to US$ 1.95 in 2022. This was followed by a substantial increase in February 2023, where EPS rose to US$ 4.24, indicating a significant acceleration in profitability during the final year of the period analyzed.
- Price-to-Earnings (P/E) Ratio Interpretation
- The P/E ratio shifted from 16.34 in 2021 to 23.68 in 2022, reflecting a market valuation that increased despite a decline in earnings. However, by February 2023, the ratio contracted sharply to 10.48. This decrease was primarily driven by the surge in earnings per share, which outpaced the relatively stable share price, resulting in a lower valuation multiple and suggesting that the increase in earnings capacity has significantly outstripped the growth in market price.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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).