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).
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Current Valuation Ratios
EMC Corp., current price multiples
| EMC Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | Monolithic Power Systems Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||
| Current share price (P) | ||||||||||||||
| No. shares of common stock outstanding | ||||||||||||||
| Growth rate (g) | ||||||||||||||
| Earnings per share (EPS) | ||||||||||||||
| Next year expected EPS | ||||||||||||||
| Operating profit per share | ||||||||||||||
| Sales per share | ||||||||||||||
| Book value per share (BVPS) | ||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||
| Price to earnings (P/E) | ||||||||||||||
| Price to next year expected earnings | ||||||||||||||
| Price-earnings-growth (PEG) | ||||||||||||||
| Price to operating profit (P/OP) | ||||||||||||||
| Price to sales (P/S) | ||||||||||||||
| Price to book value (P/BV) | ||||||||||||||
Based on: 10-K (reporting date: 2015-12-31).
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)
EMC Corp., historical price multiples
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
The financial ratios of the company displayed a mixture of upward and downward trends over the five-year period.
- Price to Earnings (P/E) Ratio
- The P/E ratio decreased from 22.96 in 2011 to 17.93 in 2012, indicating a relative decline in market valuation compared to earnings. It remained relatively stable in 2013 at 18.01, then increased to 21.2 in 2014 and further to 25.37 in 2015. This suggests growing market optimism or an increase in anticipated future earnings towards the end of the period.
- Price to Operating Profit (P/OP) Ratio
- This ratio followed a trend similar to the P/E ratio but started at 16.41 in 2011, dropped significantly to 12.36 in 2012, and held near this level in 2013 at 12.53. It then rose to 14.25 in 2014 and further increased to 17.77 in 2015. The pattern reflects fluctuations in market valuation relative to operating profitability, with a more pronounced recovery in later years.
- Price to Sales (P/S) Ratio
- The P/S ratio showed a general declining trend throughout the period. Starting from 2.82 in 2011, it decreased to 2.26 in 2012 and slightly further to 2.24 in 2013. There was a minor uptick to 2.35 in 2014, but it fell again to 2.04 in 2015. This trend suggests a diminishing market valuation relative to sales over time, possibly indicating pricing pressure or slower revenue growth relative to market capitalization.
- Price to Book Value (P/BV) Ratio
- This ratio decreased from 2.98 in 2011 to 2.19 in 2012, rose slightly to 2.33 in 2013, increased further to 2.63 in 2014, but declined again to 2.39 in 2015. The fluctuations suggest varying investor confidence in the company's net asset value, with a moderate recovery followed by a small decline in the final year.
Price to Earnings (P/E)
EMC Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to EMC Corporation (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| 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. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
EPS = Net income attributable to EMC Corporation ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of EMC Corp. Annual Report.
4 2015 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced fluctuations over the five-year period. It started at $27.52 at the end of 2011, declined to a low of $23.28 in 2012, then increased to a peak of $28.94 in 2014 before dropping again to $25.93 by the end of 2015. This indicates moderate volatility in the market valuation of the company during this timeframe.
- Earnings Per Share (EPS)
- EPS demonstrated an overall upward trend from 2011 to 2014, rising from $1.20 to a peak of $1.43. However, there was a noticeable decrease in 2015, with EPS dropping to $1.02. This suggests that the company improved its profitability progressively until 2014 but faced challenges impacting earnings in the final year of the period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio showed varied movement throughout the period. It dropped significantly from 22.96 in 2011 to 17.93 in 2012, remained relatively stable in 2013 at 18.01, then increased to 21.20 in 2014 and peaked at 25.37 in 2015. The rising P/E ratio in the last two years, despite the decline in EPS in 2015, may indicate that investor expectations remained relatively high or the share price did not fall proportionally to the EPS decline.
Price to Operating Profit (P/OP)
EMC Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| 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. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of EMC Corp. Annual Report.
4 2015 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced fluctuations over the observed period. It declined from $27.52 in 2011 to a low of $23.28 in 2012, followed by a gradual recovery reaching a peak of $28.94 in 2014. However, in 2015 the share price declined again to $25.93, indicating some volatility and lack of consistent upward momentum.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed an overall increasing trend from 2011 through 2014, rising from $1.68 to $2.05 before a slight decline to $2.03 in 2014 and a more significant decrease to $1.46 in 2015. This decline in 2015 suggests a reduction in operational efficiency or profitability during the last year of the period.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio demonstrated a downward trend from 16.41 in 2011 to a low of 12.36 in 2012, suggesting that the share price became relatively cheaper compared to operating profit in that year. Subsequently, the ratio slightly increased and stabilized around 12.53 to 14.25 in the years 2013 and 2014 before rising notably to 17.77 in 2015. This increase in 2015 indicates that the market valuation grew disproportionately relative to operating profit, potentially reflecting investor expectations or other market factors despite the decline in operating profit per share.
- Overall Analysis
- The data reveals a moderate growth in operating profit per share up to 2014, followed by a marked decrease in 2015. The share price mirrored some of this volatility but did not fall as sharply, resulting in a higher P/OP ratio by 2015. This suggests the market's valuation of the company became more optimistic or less aligned with operational profitability in the final year, which may require further investigation into underlying causes such as market sentiment, strategic changes, or external influences impacting investor expectations.
Price to Sales (P/S)
EMC Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| 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. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of EMC Corp. Annual Report.
4 2015 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited fluctuations over the observed period. Beginning at $27.52 at the end of 2011, it declined to a low of $23.28 in 2012, followed by a recovery to $25.68 in 2013 and a peak at $28.94 in 2014. However, a subsequent decrease to $25.93 was noted in 2015. Overall, the share price showed moderate volatility with no clear upward or downward long-term trend.
- Sales per Share
- Sales per share demonstrated consistent growth throughout the period. Starting at $9.75 in 2011, it increased steadily each year, reaching $12.69 by the end of 2015. This suggests continual improvement in revenue generation on a per-share basis, indicating enhanced operational performance or market demand over the years.
- Price-to-Sales Ratio (P/S)
- The price-to-sales ratio decreased over the same timeframe. From 2.82 in 2011, it dropped to 2.26 in 2012, stabilized around 2.24 to 2.35 between 2013 and 2014, and declined further to 2.04 in 2015. This downward trend indicates that the company's stock price growth has not kept pace with its sales growth, potentially reflecting a shift in market valuation or investor sentiment.
Price to Book Value (P/BV)
EMC Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total EMC Corporation’s shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| 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. | ||||||
| Monolithic Power Systems Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
BVPS = Total EMC Corporation’s shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of EMC Corp. Annual Report.
4 2015 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the provided financial data reveals several notable trends over the five-year period ending December 31, 2015.
- Share Price
- The share price exhibited volatility during the observed period. It started at $27.52 at the end of 2011, declined to a low of $23.28 by the end of 2012, then increased to a peak of $28.94 at the end of 2014, before moderating to $25.93 by the end of 2015. Overall, the share price declined modestly from 2011 to 2015 with fluctuations reflecting varying market sentiment or company performance factors.
- Book Value Per Share (BVPS)
- BVPS increased steadily from $9.23 in 2011 to $11.01 in 2013 and 2014, indicating consistent growth in the company's net asset value per share. However, there was a slight decline to $10.86 by the end of 2015, suggesting a minor reduction in book value or share count changes in that final year. Despite this, the general trend was positive growth in book value over the five years.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio declined significantly from 2.98 in 2011 to 2.19 in 2012, reflecting either a decrease in market valuation relative to book value or an increase in book value outpacing share price gains. The ratio then recovered somewhat during 2013 and 2014, reaching 2.63, before falling again to 2.39 in 2015. This pattern suggests fluctuating market perceptions of the company's value, with market price movements being more volatile compared to the relatively stable book value changes.
In summary, the company experienced moderate growth in net asset value per share during the period, but share price fluctuations impacted the market valuation ratios. The volatility in P/BV ratios implies changing investor confidence or market dynamics, despite the underlying book value showing general improvement. The slight decline in both share price and book value in 2015 may warrant further investigation into company operations or market conditions during that year.