Common Stock Valuation Ratios (Price Multiples)
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
DuPont de Nemours Inc., current price multiples
| DuPont de Nemours Inc. | Linde plc | Sherwin-Williams Co. | ||
|---|---|---|---|---|
| Selected Financial Data | ||||
| Current share price (P) | $53.10 | |||
| No. shares of common stock outstanding | 739,388,462 | |||
| Growth rate (g) | -2.38% | |||
| Earnings per share (EPS) | $0.67 | |||
| Next year expected EPS | $0.66 | |||
| Operating profit per share | $-0.06 | |||
| Sales per share | $29.09 | |||
| Book value per share (BVPS) | $55.43 | |||
| Valuation Ratios (Price Multiples) | ||||
| Price to earnings (P/E) | 78.84 | 31.37 | 30.32 | |
| Price to next year expected earnings | 80.76 | 29.23 | 20.63 | |
| Price to sales (P/S) | 1.83 | 6.37 | 3.30 | |
| Price to book value (P/BV) | 0.96 | 5.66 | 16.93 | |
Based on: 10-K (reporting date: 2019-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
DuPont de Nemours Inc., historical price multiples
Based on: 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).
The valuation multiples from 2015 to 2019 exhibit significant volatility, characterized by extreme fluctuations in earnings-based ratios and a general upward trajectory in the revenue multiple toward the end of the period.
- Earnings and Operating Profit Multiples
- The Price to Earnings (P/E) ratio demonstrates extreme instability, moving from a low of 2.33 in 2015 to a peak of 78.84 in 2019. Notable spikes occurred in 2017 (38.21) and 2019, suggesting periods of either severely depressed earnings or rapid price appreciation relative to net income. This pattern is mirrored in the Price to Operating Profit (P/OP) ratio, which saw an extraordinary surge to 102.35 in 2017 before reverting to 7.23 in 2018.
- Revenue Valuation
- The Price to Sales (P/S) ratio shows a general expansion over the five-year period. Starting at 0.35 in 2015, the ratio rose steadily to 0.89 by 2017, experienced a contraction to 0.45 in 2018, and ultimately reached a period high of 1.83 in 2019. This indicates an increasing market premium attributed to the company's top-line revenue.
- Book Value Relationship
- The Price to Book Value (P/BV) ratio remained below 1.0 for the duration of the analyzed period, signifying that the stock consistently traded at a discount to its accounting book value. The ratio peaked at 0.94 in 2016 and 0.96 in 2019, while reaching its lowest point of 0.41 in 2018, reflecting a period of significant undervaluation relative to net assets.
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Price to Earnings (P/E)
DuPont de Nemours Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 739,388,462 | 751,587,353 | 776,341,159 | 404,437,193 | 372,370,816 | |
| Selected Financial Data (US$) | ||||||
| Net income available for DuPont common stockholders (in millions) | 498) | 3,844) | 1,460) | 3,978) | 7,345) | |
| Earnings per share (EPS)2 | 0.67 | 5.11 | 1.88 | 9.84 | 19.72 | |
| Share price1, 3 | 53.10 | 52.00 | 71.85 | 60.26 | 46.01 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 78.84 | 10.17 | 38.21 | 6.13 | 2.33 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
EPS = Net income available for DuPont common stockholders ÷ No. shares of common stock outstanding
= 498,000,000 ÷ 739,388,462 = 0.67
3 Closing price as at the filing date of DuPont de Nemours Inc. Annual Report.
4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 53.10 ÷ 0.67 = 78.84
5 Click competitor name to see calculations.
The financial metrics between 2015 and 2019 exhibit significant volatility, characterized by a divergent relationship between share price movements and earnings performance.
- Earnings Per Share (EPS) Trends
- A substantial downward trajectory in EPS is observed, falling from a high of 19.72 USD in 2015 to a low of 0.67 USD by 2019. Although a temporary recovery occurred in 2018, where EPS rose to 5.11 USD, the overall period is marked by a severe erosion of profitability per share.
- Share Price Movements
- The share price followed an upward trend in the early part of the period, peaking at 71.85 USD in 2017. A subsequent correction occurred in 2018, bringing the price down to 52.00 USD, after which it remained relatively stagnant, ending 2019 at 53.10 USD.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio demonstrates extreme instability, shifting from a low of 2.33 in 2015 to a peak of 78.84 in 2019. The spikes in the valuation multiple during 2017 and 2019 are not attributed to share price appreciation, but rather to sharp contractions in earnings. The expansion of the P/E ratio to 78.84 in 2019 is specifically driven by the collapse of EPS to 0.67 USD while the share price remained stable.
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Price to Operating Profit (P/OP)
DuPont de Nemours Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 739,388,462 | 751,587,353 | 776,341,159 | 404,437,193 | 372,370,816 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | (43) | 5,404) | 545) | 3,520) | 5,539) | |
| Operating profit per share2 | -0.06 | 7.19 | 0.70 | 8.70 | 14.87 | |
| Share price1, 3 | 53.10 | 52.00 | 71.85 | 60.26 | 46.01 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | — | 7.23 | 102.35 | 6.92 | 3.09 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= -43,000,000 ÷ 739,388,462 = -0.06
3 Closing price as at the filing date of DuPont de Nemours Inc. Annual Report.
4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 53.10 ÷ -0.06 = —
5 Click competitor name to see calculations.
The valuation of the common stock relative to operating profit between 2015 and 2019 is characterized by extreme volatility, driven primarily by fluctuations in operating profit per share rather than share price movements alone.
- Share Price Trends
- The share price exhibited a growth trajectory from 2015 to 2017, rising from 46.01 US$ to a peak of 71.85 US$. A significant correction occurred in 2018, with the price dropping to 52.00 US$, followed by relative stability at 53.10 US$ in 2019.
- Operating Profit per Share Performance
- Operating profit per share showed a severe downward trend from 14.87 US$ in 2015 to a low of 0.70 US$ in 2017. Although a recovery was observed in 2018 with profit increasing to 7.19 US$, the trend reversed in 2019, resulting in a negative operating profit of -0.06 US$.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio experienced an anomalous spike in 2017, reaching 102.35. This extreme valuation occurred because the share price peaked while operating profits collapsed, indicating a temporary decoupling of market price from fundamental operating performance. The ratio normalized to 7.23 in 2018 as operating profits recovered. By 2019, the ratio became non-calculable due to the transition to negative operating profit per share.
Overall, the data indicates a period of instability in operational efficiency, which heavily influenced the stock's valuation multiples, leading to a transition from an undervalued state in 2015 to an extreme valuation peak in 2017, and finally to a state of negative profitability by 2019.
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Price to Sales (P/S)
DuPont de Nemours Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 739,388,462 | 751,587,353 | 776,341,159 | 404,437,193 | 372,370,816 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 21,512) | 85,977) | 62,484) | 48,158) | 48,778) | |
| Sales per share2 | 29.09 | 114.39 | 80.49 | 119.07 | 130.99 | |
| Share price1, 3 | 53.10 | 52.00 | 71.85 | 60.26 | 46.01 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.83 | 0.45 | 0.89 | 0.51 | 0.35 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 21,512,000,000 ÷ 739,388,462 = 29.09
3 Closing price as at the filing date of DuPont de Nemours Inc. Annual Report.
4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 53.10 ÷ 29.09 = 1.83
5 Click competitor name to see calculations.
The Price to Sales (P/S) ratio exhibited significant volatility between 2015 and 2019, characterized by a general upward trajectory that culminated in a sharp increase in the final year. While the ratio remained below 1.00 for the first four years, it reached a period high of 1.83 by the end of 2019.
- Share Price Trends
- The share price experienced a period of growth from 2015 to 2017, ascending from 46.01 to a peak of 71.85. This was followed by a price correction in 2018, where the value dropped to 52.00, and a subsequent marginal stabilization at 53.10 in 2019.
- Sales per Share Performance
- Sales per share demonstrated a general downward trend over the analyzed period. After starting at 130.99 in 2015, the value decreased to 80.49 by 2017. Although a recovery to 114.39 was observed in 2018, a severe contraction occurred in 2019, with sales per share falling to 29.09.
- P/S Ratio Analysis
- The fluctuations in the P/S ratio reflect the shifting relationship between market valuation and revenue generation. From 2015 to 2017, the ratio rose from 0.35 to 0.89, driven by increasing share prices despite declining sales per share. A dip to 0.45 occurred in 2018 as the share price declined while sales recovered. The most dramatic shift occurred in 2019, where the P/S ratio spiked to 1.83; this expansion was primarily driven by the collapse in sales per share rather than a significant increase in the share price.
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Price to Book Value (P/BV)
DuPont de Nemours Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 739,388,462 | 751,587,353 | 776,341,159 | 404,437,193 | 372,370,816 | |
| Selected Financial Data (US$) | ||||||
| Total DuPont stockholders’ equity (in millions) | 40,987) | 94,571) | 100,330) | 25,987) | 25,374) | |
| Book value per share (BVPS)2 | 55.43 | 125.83 | 129.23 | 64.25 | 68.14 | |
| Share price1, 3 | 53.10 | 52.00 | 71.85 | 60.26 | 46.01 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 0.96 | 0.41 | 0.56 | 0.94 | 0.68 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
BVPS = Total DuPont stockholders’ equity ÷ No. shares of common stock outstanding
= 40,987,000,000 ÷ 739,388,462 = 55.43
3 Closing price as at the filing date of DuPont de Nemours Inc. Annual Report.
4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 53.10 ÷ 55.43 = 0.96
5 Click competitor name to see calculations.
The valuation of the company's common stock relative to its book value exhibited significant volatility between 2015 and 2019. Throughout this five-year period, the Price to Book Value (P/BV) ratio remained consistently below 1.0, indicating that the equity was traded at a discount to its accounting book value.
- Price to Book Value Ratio Trends
- The P/BV ratio experienced a non-linear progression, starting at 0.68 in 2015 and peaking at 0.94 in 2016. A subsequent downward trend occurred through 2018, where the ratio reached a period low of 0.41. By 2019, the ratio rebounded sharply to 0.96, representing the highest valuation multiple in the analyzed timeframe.
- Book Value per Share (BVPS) Fluctuations
- The BVPS showed extreme variance, most notably a substantial increase from 64.25 in 2016 to 129.23 in 2017. This elevation was maintained through 2018 at 125.83 before a significant contraction occurred in 2019, with the value dropping to 55.43. These shifts in the underlying book value were the primary drivers of the P/BV volatility.
- Share Price Correlation
- The share price trend did not move in lockstep with the book value. While the share price reached its peak of 71.85 in 2017, the concurrent surge in BVPS resulted in a compression of the P/BV ratio to 0.56. Conversely, the sharp decline in BVPS in 2019, while the share price remained relatively stable at 53.10, led to the expansion of the P/BV ratio toward parity.
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