.Common Stock Valuation Ratios (Price Multiples)
Difficulty: Beginner
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
ConocoPhillips, current price multiples
| ConocoPhillips | Chevron Corp. | EOG Resources Inc. | Exxon Mobil Corp. | Occidental Petroleum Corp. | Phillips 66 | Oil & Gas Producers | Oil & Gas | |
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $ | |||||||
| No. shares of common stock outstanding | ||||||||
| Earnings per share (EPS) | $ | |||||||
| Operating profit per share | $ | |||||||
| Sales per share | $ | |||||||
| Book value per share (BVPS) | $ | |||||||
| Ratios (Price Multiples) | ||||||||
| Price to sales (P/S) | ||||||||
| Price to book value (P/BV) | ||||||||
If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
ConocoPhillips, historical price multiples
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| | Price to earnings (P/E) | |||||
| | Price to operating profit (P/OP) | |||||
| | Price to sales (P/S) | |||||
| | Price to book value (P/BV) |
| 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. | |
| 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. | |
| 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. | ConocoPhillips's P/S ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. | ConocoPhillips's P/BV ratio increased from 2015 to 2016 and from 2016 to 2017. |
Price to Earnings (P/E)
ConocoPhillips, historical P/E calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (USD $) | ||||||
| | Net income (loss) attributable to ConocoPhillips (in millions) | |||||
| | Earnings per share (EPS)3 | |||||
| Share price1, 2 | ||||||
| Ratio | ||||||
| | P/E ratio4 | |||||
| Benchmarks | ||||||
| P/E Ratio, Competitors | ||||||
| Chevron Corp. | ||||||
| EOG Resources Inc. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Phillips 66 | ||||||
| P/E Ratio, Sector | ||||||
| Oil & Gas Producers | ||||||
| P/E Ratio, Industry | ||||||
| Oil & Gas | ||||||
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of ConocoPhillips's Annual Report.
2017 Calculations
3 EPS = Net income (loss) attributable to ConocoPhillips ÷ No. shares of common stock outstanding
= ÷ =
4 P/E ratio = Share price ÷ EPS
= ÷ =
| 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. |
Price to Operating Profit (P/OP)
ConocoPhillips, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (USD $) | ||||||
| | Operating income (loss) (in millions) | |||||
| | Operating profit per share3 | |||||
| Share price1, 2 | ||||||
| Ratio | ||||||
| | P/OP ratio4 | |||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors | ||||||
| Chevron Corp. | ||||||
| EOG Resources Inc. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Phillips 66 | ||||||
| P/OP Ratio, Sector | ||||||
| Oil & Gas Producers | ||||||
| P/OP Ratio, Industry | ||||||
| Oil & Gas | ||||||
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of ConocoPhillips's Annual Report.
2017 Calculations
3 Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= ÷ =
4 P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
| 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. |
Price to Sales (P/S)
ConocoPhillips, historical P/S calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (USD $) | ||||||
| | Sales and other operating revenues (in millions) | |||||
| | Sales per share3 | |||||
| Share price1, 2 | ||||||
| Ratio | ||||||
| | P/S ratio4 | |||||
| Benchmarks | ||||||
| P/S Ratio, Competitors | ||||||
| Chevron Corp. | ||||||
| EOG Resources Inc. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Phillips 66 | ||||||
| P/S Ratio, Sector | ||||||
| Oil & Gas Producers | ||||||
| P/S Ratio, Industry | ||||||
| Oil & Gas | ||||||
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of ConocoPhillips's Annual Report.
2017 Calculations
3 Sales per share = Sales and other operating revenues ÷ No. shares of common stock outstanding
= ÷ =
4 P/S ratio = Share price ÷ Sales per share
= ÷ =
| 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. | ConocoPhillips's P/S ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017. |
Price to Book Value (P/BV)
ConocoPhillips, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (USD $) | ||||||
| | Common stockholders’ equity (in millions) | |||||
| | Book value per share (BVPS)3 | |||||
| Share price1, 2 | ||||||
| Ratio | ||||||
| | P/BV ratio4 | |||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors | ||||||
| Chevron Corp. | ||||||
| EOG Resources Inc. | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Phillips 66 | ||||||
| P/BV Ratio, Sector | ||||||
| Oil & Gas Producers | ||||||
| P/BV Ratio, Industry | ||||||
| Oil & Gas | ||||||
1 Data adjusted for splits and stock dividends.
2 Close price on the filing date of ConocoPhillips's Annual Report.
2017 Calculations
3 BVPS = Common stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
4 P/BV ratio = Share price ÷ BVPS
= ÷ =
| 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's required rate of return and its actual rate of return. | ConocoPhillips's P/BV ratio increased from 2015 to 2016 and from 2016 to 2017. |
