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
EQT Corp., current price multiples
| EQT Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | $39.10 | ||||||||
| No. shares of common stock outstanding | 367,046,005 | ||||||||
| Earnings per share (EPS) | $-3.15 | ||||||||
| Operating profit per share | $-3.71 | ||||||||
| Sales per share | $18.54 | ||||||||
| Book value per share (BVPS) | $27.32 | ||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to sales (P/S) | 2.11 | 2.28 | 2.76 | 2.08 | 2.63 | 2.66 | |||
| Price to book value (P/BV) | 1.43 | 2.26 | 2.52 | 2.60 | 3.56 | 3.62 | |||
Based on: 10-K (reporting date: 2021-12-31).
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)
EQT Corp., historical price multiples
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The valuation multiples exhibit a significant U-shaped trend between 2017 and 2021, characterized by a sharp contraction in market valuation relative to sales and book value through 2019, followed by a moderate recovery in the subsequent two years.
- Price to Sales (P/S) Ratio
- A substantial decline is observed from 2017 to 2019, with the ratio dropping from 5.32 to 0.36. This contraction indicates a significant decrease in the market valuation relative to revenue generation. A sharp rebound occurred in 2020, where the ratio rose to 2.02, before moderating to 1.20 by the end of 2021.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio followed a trajectory similar to the P/S ratio, declining from 1.06 in 2017 to a trough of 0.14 in 2019. This suggests that during this period, the market valued the company significantly below its accounting book value. A consistent recovery trend is evident from 2020 onward, with the ratio increasing to 0.58 in 2020 and further to 0.81 in 2021.
- Earnings and Operating Profit Multiples
- Data for the Price to Earnings (P/E) and Price to Operating Profit (P/OP) ratios is available only for the 2017 fiscal year, recorded at 9.35 and 36.91, respectively. The lack of subsequent figures prevents a longitudinal trend analysis for these profitability-based valuation metrics.
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Price to Earnings (P/E)
EQT Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 376,023,250 | 278,854,465 | 255,454,000 | 254,762,000 | 264,473,000 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to EQT Corporation (in thousands) | (1,155,759) | (967,166) | (1,221,695) | (2,244,568) | 1,508,529) | |
| Earnings per share (EPS)2 | -3.07 | -3.47 | -4.78 | -8.81 | 5.70 | |
| Share price1, 3 | 21.67 | 19.17 | 5.38 | 18.20 | 53.34 | |
| Valuation Ratio | ||||||
| P/E ratio4 | — | — | — | — | 9.35 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | 16.81 | — | — | — | — | |
| ConocoPhillips | 14.66 | — | — | — | — | |
| ExxonMobil Holdings Corp. | 14.11 | — | — | — | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 15.11 | — | — | — | — | |
| P/E Ratio, Industry | ||||||
| Energy | 15.67 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income (loss) attributable to EQT Corporation ÷ No. shares of common stock outstanding
= -1,155,759,000 ÷ 376,023,250 = -3.07
3 Closing price as at the filing date of EQT Corp. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 21.67 ÷ -3.07 = —
5 Click competitor name to see calculations.
A period of significant volatility is observed in both equity valuation and profitability metrics between 2017 and 2021. The share price underwent a severe contraction in the initial years of the period before entering a recovery phase, while earnings shifted from a profitable position to sustained net losses.
- Share Price Trends
- A sharp downward trajectory is evident from 2017 to 2019, with the share price falling from 53.34 to a period low of 5.38. A reversal occurred in 2020, with the price ascending to 19.17 and further increasing to 21.67 by the end of 2021.
- Earnings Per Share (EPS) Performance
- Profitability ceased after 2017, when EPS stood at 5.70. A substantial deficit was recorded in 2018 at -8.81. Although earnings remained negative through 2021, a consistent trend of loss reduction is observable, with the deficit narrowing to -4.78 in 2019, -3.47 in 2020, and -3.07 in 2021.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio was only applicable in 2017, recorded at 9.35. For the subsequent years from 2018 through 2021, the ratio is absent, as the negative earnings per share render the standard P/E multiple mathematically inapplicable for valuation purposes.
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Price to Operating Profit (P/OP)
EQT Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 376,023,250 | 278,854,465 | 255,454,000 | 254,762,000 | 264,473,000 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in thousands) | (1,360,975) | (877,666) | (1,152,110) | (2,783,124) | 382,212) | |
| Operating profit per share2 | -3.62 | -3.15 | -4.51 | -10.92 | 1.45 | |
| Share price1, 3 | 21.67 | 19.17 | 5.38 | 18.20 | 53.34 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | — | — | — | — | 36.91 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 11.40 | — | — | — | — | |
| ConocoPhillips | 8.66 | — | — | — | — | |
| ExxonMobil Holdings Corp. | 9.86 | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 10.13 | — | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 10.52 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= -1,360,975,000 ÷ 376,023,250 = -3.62
3 Closing price as at the filing date of EQT Corp. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 21.67 ÷ -3.62 = —
5 Click competitor name to see calculations.
A significant divergence is observed between the equity valuation and the operational profitability of the entity from 2017 through 2021. While the share price exhibited high volatility with a sharp contraction followed by a partial recovery, operating profitability shifted from a positive state to a sustained period of operational losses.
- Share Price Volatility
- The share price experienced a precipitous decline between 2017 and 2019, falling from 53.34 US$ to a low of 5.38 US$. A recovery phase began in 2020, with the price rising to 19.17 US$, and continuing upward to 21.67 US$ by the end of 2021.
- Operating Profitability Trends
- Operational performance deteriorated sharply following 2017. After reporting a positive operating profit per share of 1.45 US$ in 2017, the entity entered a period of consecutive losses. The most severe deficit occurred in 2018 at -10.92 US$ per share, with subsequent years remaining negative, ranging between -3.15 US$ and -4.51 US$.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio was only applicable in 2017, recorded at 36.91. The absence of this ratio from 2018 to 2021 is a direct consequence of the negative operating profit per share, as price multiples based on earnings are generally not calculated or considered meaningful when the denominator is negative.
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Price to Sales (P/S)
EQT Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 376,023,250 | 278,854,465 | 255,454,000 | 254,762,000 | 264,473,000 | |
| Selected Financial Data (US$) | ||||||
| Sales of natural gas, natural gas liquids and oil (in thousands) | 6,804,020) | 2,650,299) | 3,791,414) | 4,695,519) | 2,651,318) | |
| Sales per share2 | 18.09 | 9.50 | 14.84 | 18.43 | 10.02 | |
| Share price1, 3 | 21.67 | 19.17 | 5.38 | 18.20 | 53.34 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.20 | 2.02 | 0.36 | 0.99 | 5.32 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.69 | — | — | — | — | |
| ConocoPhillips | 2.58 | — | — | — | — | |
| ExxonMobil Holdings Corp. | 1.17 | — | — | — | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.48 | — | — | — | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.52 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Sales of natural gas, natural gas liquids and oil ÷ No. shares of common stock outstanding
= 6,804,020,000 ÷ 376,023,250 = 18.09
3 Closing price as at the filing date of EQT Corp. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 21.67 ÷ 18.09 = 1.20
5 Click competitor name to see calculations.
Between 2017 and 2021, the valuation multiples exhibited extreme volatility, characterized by a severe contraction in the Price to Sales (P/S) ratio followed by a period of fluctuation and partial recovery. The overall trend indicates a significant decoupling of market valuation from sales performance during the mid-period, eventually moving toward a more balanced alignment by 2021.
- Price to Sales (P/S) Ratio Volatility
- The P/S ratio experienced a precipitous decline from a high of 5.32 in 2017 to a period low of 0.36 in 2019. This collapse was primarily driven by a sharp reduction in share price, which fell from 53.34 to 5.38, far outpacing the fluctuations in sales per share. A subsequent spike occurred in 2020, where the ratio rose to 2.02, before moderating to 1.20 by the end of 2021.
- Share Price and Revenue Divergence
- A notable divergence is observed in 2020; the share price recovered significantly to 19.17, yet sales per share dropped to a five-year low of 9.50. This resulted in an artificial inflation of the P/S ratio, suggesting that the 2020 valuation recovery was driven by market sentiment or external factors rather than underlying revenue growth.
- Revenue Recovery and Valuation Normalization
- By December 31, 2021, a normalization of the valuation multiple is evident. Although the share price continued to rise to 21.67, the P/S ratio decreased to 1.20. This contraction in the multiple occurred because sales per share rebounded strongly to 18.09, indicating that the valuation became more grounded in fundamental operational performance toward the end of the analyzed period.
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Price to Book Value (P/BV)
EQT Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 376,023,250 | 278,854,465 | 255,454,000 | 254,762,000 | 264,473,000 | |
| Selected Financial Data (US$) | ||||||
| Common shareholders’ equity (in thousands) | 10,029,527) | 9,255,240) | 9,803,588) | 10,958,229) | 13,319,618) | |
| Book value per share (BVPS)2 | 26.67 | 33.19 | 38.38 | 43.01 | 50.36 | |
| Share price1, 3 | 21.67 | 19.17 | 5.38 | 18.20 | 53.34 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 0.81 | 0.58 | 0.14 | 0.42 | 1.06 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.89 | — | — | — | — | |
| ConocoPhillips | 2.61 | — | — | — | — | |
| ExxonMobil Holdings Corp. | 1.93 | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.00 | — | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 2.07 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Common shareholders’ equity ÷ No. shares of common stock outstanding
= 10,029,527,000 ÷ 376,023,250 = 26.67
3 Closing price as at the filing date of EQT Corp. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 21.67 ÷ 26.67 = 0.81
5 Click competitor name to see calculations.
Between 2017 and 2021, the valuation metrics exhibited a period of significant volatility, characterized by a sharp contraction in market value followed by a partial recovery, occurring alongside a steady and uninterrupted decline in the accounting book value per share.
- Book Value per Share (BVPS)
- A consistent downward trajectory is observed in the BVPS, which decreased from 50.36 US$ in 2017 to 26.67 US$ by the end of 2021. This represents a sustained reduction in the net asset value attributed to each share throughout the analyzed five-year period.
- Share Price Performance
- The market price experienced a severe decline from 53.34 US$ in 2017 to a trough of 5.38 US$ in 2019. A recovery phase began in 2020, with the price ascending to 19.17 US$ and further increasing to 21.67 US$ by the end of 2021.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio closely mirrored the volatility of the share price. Starting at 1.06 in 2017, indicating a valuation near book parity, the ratio collapsed to 0.14 by 2019, signaling that the market valued the company at a deep discount to its accounting value. A subsequent recovery brought the ratio to 0.58 in 2020 and 0.81 in 2021, suggesting a restoration of market confidence, although the valuation remained below the book value from 2018 through 2021.
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