Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
Historical Valuation Ratios (Summary)
EMC Corp., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
- Price to Earnings (P/E) Ratio Trends
- The Price to Earnings ratio exhibited a general declining trend from March 2012 to December 2012, decreasing from 23.28 to 17.93. Following this period, the ratio showed some fluctuation but remained relatively stable around the 18 to 22 range until early 2015. From March 2015 onward, the P/E ratio increased steadily, reaching a peak value of 26.51 by June 2016, indicating a rising market valuation relative to earnings over this time.
- Price to Operating Profit (P/OP) Ratio Trends
- The Price to Operating Profit ratio decreased consistently in 2012, from 16.55 in March to 12.36 in December. This decline was followed by a mild recovery and stabilization around the 12 to 15 range through 2013 to late 2014. Starting in early 2015, the ratio experienced a marked upward trend, surpassing 17 by mid-2016. This suggests increasing investor willingness to pay more for each unit of operating profit over the later periods.
- Price to Sales (P/S) Ratio Trends
- The Price to Sales ratio declined steadily during 2012, dropping from 2.92 to 2.26 by December 2012. In subsequent periods, the ratio fluctuated within a narrow band, mostly between 2.0 and 2.5. A slight downward trend is observable from early 2014 to late 2015, reaching a minimum near 2.02, before modestly rising again to 2.26 by mid-2016. Overall, the P/S ratio suggests relative valuation stability with some mild caution from the market towards sales multiples.
- Price to Book Value (P/BV) Ratio Trends
- The Price to Book Value ratio declined in 2012 from 2.98 to 2.19, indicating a decrease in market valuation relative to book value. From early 2013 to mid-2015, the ratio showed minor fluctuations but mostly remained between 2.2 and 2.6. However, a downward drift occurred in late 2015 and early 2016, reaching a low near 2.38 before recovering slightly to 2.51 by June 2016. This indicates periodic shifts in investor sentiment regarding the company's net asset backing.
- Summary of Valuation Ratios
- Across the analysis period, all valuation ratios exhibited an initial decline in 2012, signifying reduced market valuation multiples. From 2013 onward, except for the Price to Sales ratio which remained relatively stable, the other ratios showed upward trends beginning around early 2015, suggesting improved market confidence or expectations about the company's profitability and growth prospects. The divergence in trends between Price to Sales and the other ratios may imply that earnings and operating profits were growing faster than sales, or that investors placed greater emphasis on earnings quality and profitability measures during the later periods.
Price to Earnings (P/E)
EMC Corp., historical P/E calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Net income attributable to EMC Corporation (in millions) | 581) | 268) | 771) | 480) | 487) | 252) | 1,146) | 587) | 589) | 392) | 1,022) | 586) | 701) | 580) | 870) | 626) | 650) | 587) | ||||||
| Earnings per share (EPS)2 | 1.07 | 1.03 | 1.02 | 1.22 | 1.28 | 1.33 | 1.37 | 1.27 | 1.28 | 1.32 | 1.43 | 1.33 | 1.33 | 1.30 | 1.30 | 1.28 | 1.27 | 1.22 | ||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/E ratio4 | 26.51 | 25.58 | 25.37 | 21.18 | 20.91 | 20.51 | 21.20 | 22.82 | 22.77 | 19.42 | 18.01 | 17.95 | 19.72 | 18.02 | 17.93 | 19.53 | 20.47 | 23.28 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
EPS
= (Net income attributable to EMC CorporationQ2 2016
+ Net income attributable to EMC CorporationQ1 2016
+ Net income attributable to EMC CorporationQ4 2015
+ Net income attributable to EMC CorporationQ3 2015)
÷ No. shares of common stock outstanding
= (581,000,000 + 268,000,000 + 771,000,000 + 480,000,000)
÷ 1,956,842,060 = 1.07
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/E ratio = Share price ÷ EPS
= 28.45 ÷ 1.07 = 26.51
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed periods.
- Share Price
- The share price exhibited a declining trend from March 2012 through December 2012, decreasing from $28.51 to $23.28. This was followed by a period of fluctuation throughout 2013 and 2014, with prices generally ranging between $23.38 and $29.06. Notably, the share price peaked near the end of the second quarter of 2014 at $29.06. Subsequently, the share price experienced a gradual decline from early 2015 to late 2015, reaching a low of $25.83 in September 2015. The price stabilized and began to recover slightly by mid-2016, ending at $28.45 in June 2016.
- Earnings Per Share (EPS)
- EPS demonstrated a mostly stable pattern with modest fluctuations over the observed quarters. Beginning at $1.22 in March 2012, it gradually increased to a peak of $1.43 in December 2013. Afterward, the EPS showed a mild decline during the subsequent two years, falling to a low of $1.02 in December 2015. In the first half of 2016, EPS showed signs of recovery, rising to $1.07 by June 2016.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio declined steadily from 23.28 in March 2012 to a low point of 17.93 in December 2012, reflecting the combined effect of decreasing share prices and gradual EPS growth in that period. From 2013 through mid-2014, the P/E ratio fluctuated between approximately 17.95 and 22.82, suggesting variable investor sentiment relative to earnings. In 2015, the P/E ratio increased consistently, reaching a peak of 25.37 in December 2015, despite the decreasing EPS, which indicates the market may have anticipated future growth or valued the company at a premium. This elevated P/E level persisted into the first half of 2016, ending at 26.51 in June 2016.
In summary, the quarter-to-quarter data display a somewhat inverse relationship between share price and EPS at certain intervals: while EPS peaked around late 2013, share prices experienced fluctuations without a clear upward trend. The P/E ratio's increase in 2015 and 2016, despite declining EPS, implies elevated investor expectations or market optimism towards the company's forward prospects during that time frame.
Price to Operating Profit (P/OP)
EMC Corp., historical P/OP calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Operating income (in millions) | 882) | 410) | 1,092) | 690) | 680) | 379) | 1,571) | 947) | 874) | 645) | 1,460) | 907) | 1,022) | 761) | 1,269) | 899) | 947) | 849) | ||||||
| Operating profit per share2 | 1.57 | 1.47 | 1.46 | 1.71 | 1.86 | 1.94 | 2.03 | 1.93 | 1.92 | 1.97 | 2.05 | 1.92 | 1.90 | 1.84 | 1.88 | 1.82 | 1.82 | 1.72 | ||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/OP ratio4 | 18.11 | 17.87 | 17.77 | 15.08 | 14.45 | 14.00 | 14.25 | 15.05 | 15.17 | 13.00 | 12.53 | 12.41 | 13.87 | 12.68 | 12.36 | 13.73 | 14.33 | 16.55 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
Operating profit per share
= (Operating incomeQ2 2016
+ Operating incomeQ1 2016
+ Operating incomeQ4 2015
+ Operating incomeQ3 2015)
÷ No. shares of common stock outstanding
= (882,000,000 + 410,000,000 + 1,092,000,000 + 690,000,000)
÷ 1,956,842,060 = 1.57
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 28.45 ÷ 1.57 = 18.11
5 Click competitor name to see calculations.
The analysis of the recent quarterly financial data reveals several notable trends regarding market valuation and operational profitability.
- Share Price
- The share price experienced an initial decline from $28.51 at the end of March 2012, reaching a low point near $23.28 by the end of December 2012. Subsequently, there was a recovery phase where the price fluctuated but generally trended upward, peaking close to $29.06 in June 2014. Following this peak, the share price exhibited relative stability with minor fluctuations, closing at $28.45 by June 2016.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed a gradual increase during the early periods, rising from $1.72 in March 2012 to a peak of $2.05 in December 2013. After this peak, OPPS began a downward trajectory, declining to $1.46 by December 2015. The last reported periods indicated a slight recovery to $1.57 by June 2016, though remaining below earlier highs.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio displayed a consistent upward trend throughout the periods analyzed. Starting at 16.55 in March 2012, the ratio decreased initially to a low of 12.36 by December 2012, reflecting a lower market price relative to operating profit. However, from 2013 onward, the ratio steadily increased, highlighting a growing market valuation relative to operating profit. By June 2016, this ratio reached 18.11, its highest level within the observed timeframe.
- Overall Insights
- The data indicates that while operating profitability peaked in late 2013 and then declined, the market valuation of the company showed resilience and a gradual appreciation over the long term. The increasing P/OP ratio suggests that investors were assigning a higher premium to the generated operating profits over time, possibly reflecting expectations of future growth or improved company fundamentals beyond current operating profits. The divergence between decreasing OPPS and increasing market valuation warrants further investigation into other factors affecting investor sentiment and share price dynamics.
Price to Sales (P/S)
EMC Corp., historical P/S calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Revenues (in millions) | 6,017) | 5,475) | 7,015) | 6,079) | 5,997) | 5,613) | 7,049) | 6,032) | 5,880) | 5,479) | 6,682) | 5,539) | 5,614) | 5,387) | 6,030) | 5,278) | 5,311) | 5,094) | ||||||
| Sales per share2 | 12.56 | 12.58 | 12.69 | 12.76 | 12.83 | 12.65 | 12.29 | 11.83 | 11.62 | 11.39 | 11.46 | 10.97 | 10.72 | 10.48 | 10.32 | 10.09 | 9.99 | 9.76 | ||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/S ratio4 | 2.26 | 2.09 | 2.04 | 2.02 | 2.09 | 2.15 | 2.35 | 2.45 | 2.50 | 2.25 | 2.24 | 2.18 | 2.45 | 2.23 | 2.26 | 2.48 | 2.61 | 2.92 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
Sales per share
= (RevenuesQ2 2016
+ RevenuesQ1 2016
+ RevenuesQ4 2015
+ RevenuesQ3 2015)
÷ No. shares of common stock outstanding
= (6,017,000,000 + 5,475,000,000 + 7,015,000,000 + 6,079,000,000)
÷ 1,956,842,060 = 12.56
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/S ratio = Share price ÷ Sales per share
= 28.45 ÷ 12.56 = 2.26
5 Click competitor name to see calculations.
The analyzed data reveals several observable trends in the financial metrics over the periods from March 2012 to June 2016.
- Share Price
- The share price exhibited a downward trend from March 2012, starting at 28.51 US$, and declining to a low of 23.28 US$ by December 2012. Subsequently, the share price showed fluctuations, with intermittent recovery periods reaching peaks around 29.06 US$ in June 2014. However, after this peak, the price generally trended downwards again, with values mostly in the mid to high 20s range. By June 2016, the share price had recovered somewhat to 28.45 US$, nearing the initial levels observed in early 2012.
- Sales Per Share
- Sales per share demonstrated a consistent upward trajectory throughout the entire period. Beginning at 9.76 US$ in March 2012, sales per share rose steadily to reach 12.56 US$ by June 2016. This indicates a gradual improvement in revenue generation on a per-share basis, with only minor fluctuations around the growth trend, particularly in the periods between mid-2014 and mid-2016 where the values stabilized somewhat.
- Price-to-Sales Ratio (P/S)
- The P/S ratio began at 2.92 in March 2012 and experienced a general decline until reaching approximately 2.02 by September 2015. This declining trend suggests that the share price did not keep pace with the increases in sales per share over this timeframe. After September 2015, the ratio showed a slight recovery, rising to 2.26 by June 2016, which may reflect a modest improvement in market valuation relative to sales near the end of the period.
In summary, the sales per share increased steadily, reflecting growth in sales efficiency or business volume, while the share price experienced volatility with no sustained upward trend until a recovery near the end of the period. The declining price-to-sales ratio over most of the periods indicates that the market valuation became more conservative relative to sales, only partially reversing in the final quarters.
Price to Book Value (P/BV)
EMC Corp., historical P/BV calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Total EMC Corporation’s shareholders’ equity (in millions) | 22,138) | 21,573) | 21,140) | 20,444) | 20,077) | 20,449) | 21,896) | 22,669) | 22,321) | 22,452) | 22,301) | 22,317) | 22,590) | 22,661) | 22,357) | 21,704) | 20,937) | 20,055) | ||||||
| Book value per share (BVPS)2 | 11.31 | 11.04 | 10.86 | 10.54 | 10.43 | 10.53 | 11.01 | 11.14 | 11.00 | 10.97 | 11.01 | 10.84 | 10.86 | 10.79 | 10.62 | 10.30 | 9.98 | 9.55 | ||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/BV ratio4 | 2.51 | 2.38 | 2.39 | 2.45 | 2.57 | 2.58 | 2.63 | 2.61 | 2.64 | 2.34 | 2.33 | 2.20 | 2.42 | 2.17 | 2.19 | 2.42 | 2.61 | 2.98 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
BVPS = Total EMC Corporation’s shareholders’ equity ÷ No. shares of common stock outstanding
= 22,138,000,000 ÷ 1,956,842,060 = 11.31
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/BV ratio = Share price ÷ BVPS
= 28.45 ÷ 11.31 = 2.51
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends related to the company's share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the examined periods.
- Share Price
- The share price experienced a general decline from March 2012 through December 2012, dropping from 28.51 US$ to 23.28 US$. Following this downward trend, there was a partial recovery and fluctuations between the March 2013 and June 2016 periods, with the price reaching a peak near 29.06 US$ in June 2014 before stabilizing around the mid-to-high 20s. This suggests an initial weakening in market valuation that was eventually tempered by moderate gains and relative stability in subsequent years.
- Book Value per Share (BVPS)
- The BVPS showed a steady upward trajectory throughout the period, increasing from 9.55 US$ in March 2012 to 11.31 US$ by June 2016. This consistent growth reflects the company's improving net asset base on a per-share basis, indicating sustained value creation at the equity level despite fluctuations in share price.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio declined from 2.98 in March 2012 to a low of 2.19 by December 2012, mirroring the trend in share price and signaling a compression in market valuation relative to book value. After this trough, the ratio fluctuated between about 2.17 and 2.64, showing moderate variance but no clear trend indicative of either significant undervaluation or overvaluation against the book value. This balance suggests the market adjusted its valuation multiples to align more closely with the underlying book value growth.
Overall, the data indicates that while the market price initially decreased sharply in 2012, subsequent periods were characterized by stabilization and modest recovery. The steady increase in book value per share throughout underscores company strength at the asset level, whereas moderate fluctuations in the P/BV ratio suggest investor sentiment and market conditions influenced market pricing multiples over time without extreme volatility.