Price to Operating Profit (P/OP)
since 2020
Calculation
Carrier Global Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating profit1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 7, 2023 | 8.20 | = | 44.39 | ÷ | 5.41 | 5.41 | = | 4,515 | ÷ | 834,187,942 | |
| Feb 8, 2022 | 14.90 | = | 46.06 | ÷ | 3.09 | 3.09 | = | 2,645 | ÷ | 855,514,035 | |
| Feb 9, 2021 | 10.50 | = | 37.25 | ÷ | 3.55 | 3.55 | = | 3,083 | ÷ | 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.
An analysis of the valuation metrics from February 2021 to February 2023 reveals a period of fluctuation in the price to operating profit (P/OP) ratio, driven by the diverging trajectories of share price and operational profitability.
- Share Price Trends
- The share price experienced an initial increase from US$ 37.25 in February 2021 to US$ 46.06 in February 2022. This was followed by a slight correction to US$ 44.39 by February 2023.
- Operating Profit per Share Performance
- Operating profit per share showed a marginal decline between 2021 and 2022, moving from US$ 3.55 to US$ 3.09. However, a significant increase was observed in February 2023, with the figure rising to US$ 5.41, marking a substantial improvement in operational efficiency per share.
- P/OP Ratio Analysis
- The P/OP ratio expanded from 10.50 in 2021 to a peak of 14.90 in 2022, indicating that the market price increased while operating profits simultaneously decreased. In 2023, the ratio contracted sharply to 8.20. This compression suggests that the growth in operating profit per share significantly outpaced the movement of the share price, resulting in a lower valuation multiple relative to operational earnings.
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/OP, long-term trends, comparison to competitors
| Carrier Global Corp. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Feb 7, 2023 | 8.20 | — | 16.25 | 14.06 | 26.48 |
| Feb 8, 2022 | 14.90 | — | 15.87 | 11.56 | 28.68 |
| Feb 9, 2021 | 10.50 | — | 24.23 | 10.63 | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).