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)
Ecolab Inc., historical price multiples (quarterly data)
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibited an overall upward trend from early 2018 through mid-2021. Starting at approximately 27.69 in the first quarter of 2018, it peaked around 59.4 in the first quarter of 2021 before moderating to 45.76 by the fourth quarter of 2021. This indicates that market expectations for earnings growth increased significantly during this period, especially in 2021, though there was some correction toward the end of that year.
- Price to Operating Profit (P/OP) Ratio
- This ratio showed a general increase over time, rising from about 20.79 in the first quarter of 2018 to a high of 49.62 in the first quarter of 2021. It subsequently declined to 32.34 by the end of 2021. Such a pattern suggests that investors placed progressively higher valuations on the operating profitability of the business until early 2021, followed by a notable decrease in perceived value toward year-end.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio steadily rose from 2.94 in early 2018 to a peak of 5.61 in the first quarter of 2021. After this peak, the ratio declined to 4.06 by the final quarter of 2021. This growth and subsequent partial contraction in the ratio reflect increasing sales valuation multiples during the period, reaching a maximum in early 2021 and then retracting somewhat.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio showed a progressive increase from 5.47 in the first quarter of 2018 to a high of 10.38 in early 2021. Thereafter, the ratio trended downward to 7.16 by the fourth quarter of 2021. This trend indicates that the market valuation relative to book equity strengthened over the years until early 2021, after which it experienced a decline, possibly reflecting changing investor sentiment or fluctuations in book value.
Price to Earnings (P/E)
Ecolab Inc., historical P/E calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 286,751,531 | 286,567,307 | 286,087,223 | 285,937,396 | 285,849,956 | 285,445,183 | 285,384,775 | 289,201,752 | 288,166,440 | 288,244,379 | 287,751,846 | 288,242,150 | 287,853,232 | 288,873,052 | 288,903,662 | 288,520,477 | |||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Net income (loss) attributable to Ecolab (in thousands) | 301,000) | 324,500) | 310,800) | 193,600) | 300,300) | 246,200) | (2,035,000) | 283,400) | 429,600) | 464,200) | 368,600) | 296,500) | 395,100) | 435,400) | 351,300) | 247,300) | |||||
| Earnings per share (EPS)2 | 3.94 | 3.94 | 3.67 | -4.53 | -4.22 | -3.77 | -3.01 | 5.35 | 5.41 | 5.29 | 5.20 | 5.13 | 4.96 | 5.54 | 5.39 | 5.21 | |||||
| Share price1, 3 | 180.30 | 222.22 | 218.18 | 228.50 | 209.36 | 183.59 | 194.20 | 194.12 | 180.45 | 192.07 | 200.93 | 184.32 | 170.16 | 152.73 | 146.34 | 144.18 | |||||
| Valuation Ratio | |||||||||||||||||||||
| P/E ratio4 | 45.76 | 56.39 | 59.40 | — | — | — | — | 36.32 | 33.36 | 36.32 | 38.66 | 35.94 | 34.27 | 27.58 | 27.16 | 27.69 | |||||
| Benchmarks | |||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||
| Linde plc | 38.92 | 45.83 | 48.23 | 53.02 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Sherwin-Williams Co. | 37.32 | 42.12 | 34.90 | 33.77 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
EPS
= (Net income (loss) attributable to EcolabQ4 2021
+ Net income (loss) attributable to EcolabQ3 2021
+ Net income (loss) attributable to EcolabQ2 2021
+ Net income (loss) attributable to EcolabQ1 2021)
÷ No. shares of common stock outstanding
= (301,000,000 + 324,500,000 + 310,800,000 + 193,600,000)
÷ 286,751,531 = 3.94
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 180.30 ÷ 3.94 = 45.76
5 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's performance over the specified periods.
- Share Price
- The share price exhibited an overall upward trajectory from March 2018 to March 2021, increasing from $144.18 to a peak of $228.50 in March 2021. There were some fluctuations within this period, with intermittent declines, notably between June 2021 and December 2021, when the price dropped from $218.18 to $180.30. This indicates some market volatility despite the general growth trend.
- Earnings per Share (EPS)
- EPS displayed a positive and relatively stable trend from March 2018 through March 2020, ranging between approximately $4.96 and $5.54. However, there was a significant and abrupt decline starting in June 2020, with EPS turning negative and reaching a low of -$4.53 by March 2021. This negative phase was followed by a recovery in the subsequent quarters, with EPS returning to positive territory at around $3.67 to $3.94 in the latter part of 2021, although it remained below pre-2020 levels.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio showed an upward trend from March 2018, moving from approximately 27.69 to a high near 38.66 in mid-2019. It then declined slightly by the end of 2019 but rose again sharply toward 2021, reaching a peak of 59.4 in March 2021. This increase in P/E ratio, especially during the period when EPS was negative or recovering, suggests elevated market expectations relative to earnings, possibly reflecting investor optimism or valuation adjustments following earnings volatility.
In summary, the company experienced robust share price growth until early 2021, coupled with stable earnings up to early 2020. The period following March 2020 saw a significant earnings downturn with negative EPS, likely tied to extraordinary factors impacting profitability. Despite earnings challenges, share prices remained relatively resilient and P/E ratios expanded, which may illustrate market confidence in future earnings recovery. EPS showed signs of gradual recovery towards the end of 2021, yet it had not returned to previous highs.
Price to Operating Profit (P/OP)
Ecolab Inc., historical P/OP calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 286,751,531 | 286,567,307 | 286,087,223 | 285,937,396 | 285,849,956 | 285,445,183 | 285,384,775 | 289,201,752 | 288,166,440 | 288,244,379 | 287,751,846 | 288,242,150 | 287,853,232 | 288,873,052 | 288,903,662 | 288,520,477 | |||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Operating income (in thousands) | 387,700) | 465,800) | 447,800) | 297,300) | 416,100) | 411,400) | 192,000) | 376,200) | 560,400) | 587,600) | 498,600) | 367,200) | 581,900) | 516,200) | 494,600) | 354,300) | |||||
| Operating profit per share2 | 5.57 | 5.68 | 5.50 | 4.61 | 4.88 | 5.40 | 6.01 | 6.99 | 6.99 | 7.06 | 6.82 | 6.80 | 6.76 | 6.90 | 7.12 | 6.93 | |||||
| Share price1, 3 | 180.30 | 222.22 | 218.18 | 228.50 | 209.36 | 183.59 | 194.20 | 194.12 | 180.45 | 192.07 | 200.93 | 184.32 | 170.16 | 152.73 | 146.34 | 144.18 | |||||
| Valuation Ratio | |||||||||||||||||||||
| P/OP ratio4 | 32.34 | 39.14 | 39.69 | 49.62 | 42.88 | 34.03 | 32.29 | 27.75 | 25.82 | 27.20 | 29.44 | 27.11 | 25.16 | 22.14 | 20.56 | 20.79 | |||||
| Benchmarks | |||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||
| Linde plc | 29.87 | 34.99 | 36.47 | 40.55 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Sherwin-Williams Co. | 27.19 | 30.17 | 25.17 | 24.24 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
Operating profit per share
= (Operating incomeQ4 2021
+ Operating incomeQ3 2021
+ Operating incomeQ2 2021
+ Operating incomeQ1 2021)
÷ No. shares of common stock outstanding
= (387,700,000 + 465,800,000 + 447,800,000 + 297,300,000)
÷ 286,751,531 = 5.57
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 180.30 ÷ 5.57 = 32.34
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the performance and valuation metrics over the observed period.
- Share Price
- The share price exhibits an overall upward trend from early 2018 through 2021, with some fluctuations. It started at $144.18 in March 2018 and generally increased, reaching a peak at $228.50 in March 2021. However, there was a decline in the last quarter of 2021, bringing the price down to $180.30. This indicates periods of strong investor confidence followed by some downward corrections.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed relative stability during 2018 and 2019, oscillating between approximately $6.76 and $7.06. However, from 2020 onwards, a declining trend is evident, decreasing from $6.99 in March 2020 down to $4.61 in March 2021. Some recovery was observed in the following quarters, rising to $5.68 by September 2021, but it slightly decreased again to $5.57 by December 2021. This pattern suggests challenges affecting profitability, possibly related to external economic factors or operational difficulties.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio has generally trended upwards across the entire period, indicating that the stock became more expensive relative to operating profit per share. Starting at around 20.79 in March 2018, it surged sharply in 2020, reaching a peak ratio of 49.62 in March 2021, aligning with the lower operating profit per share and a rising share price. Toward the end of 2021, the ratio declined somewhat to 32.34 but remained elevated, which may reflect heightened valuation multiples or market optimism despite subdued profit growth.
In summary, the data reflect a share price appreciation amid declining operating profitability, leading to an increased valuation multiple. The elevated P/OP ratios in 2020 and 2021 might signal market expectations for future recovery or growth, even as operating profit per share experienced downward pressures during this timeframe.
Price to Sales (P/S)
Ecolab Inc., historical P/S calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 286,751,531 | 286,567,307 | 286,087,223 | 285,937,396 | 285,849,956 | 285,445,183 | 285,384,775 | 289,201,752 | 288,166,440 | 288,244,379 | 287,751,846 | 288,242,150 | 287,853,232 | 288,873,052 | 288,903,662 | 288,520,477 | |||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Net sales (in thousands) | 3,364,600) | 3,320,800) | 3,162,700) | 2,885,000) | 3,065,300) | 3,018,600) | 2,685,700) | 3,020,600) | 3,823,600) | 3,817,900) | 3,759,400) | 3,505,400) | 3,760,500) | 3,747,200) | 3,689,600) | 3,470,900) | |||||
| Sales per share2 | 44.40 | 43.39 | 42.41 | 40.76 | 41.25 | 43.96 | 46.77 | 49.87 | 51.73 | 51.50 | 51.34 | 51.01 | 50.96 | 50.40 | 49.76 | 49.03 | |||||
| Share price1, 3 | 180.30 | 222.22 | 218.18 | 228.50 | 209.36 | 183.59 | 194.20 | 194.12 | 180.45 | 192.07 | 200.93 | 184.32 | 170.16 | 152.73 | 146.34 | 144.18 | |||||
| Valuation Ratio | |||||||||||||||||||||
| P/S ratio4 | 4.06 | 5.12 | 5.15 | 5.61 | 5.08 | 4.18 | 4.15 | 3.89 | 3.49 | 3.73 | 3.91 | 3.61 | 3.34 | 3.03 | 2.94 | 2.94 | |||||
| Benchmarks | |||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||
| Linde plc | 4.84 | 5.50 | 5.48 | 5.56 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Sherwin-Williams Co. | 3.49 | 4.21 | 3.86 | 3.79 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
Sales per share
= (Net salesQ4 2021
+ Net salesQ3 2021
+ Net salesQ2 2021
+ Net salesQ1 2021)
÷ No. shares of common stock outstanding
= (3,364,600,000 + 3,320,800,000 + 3,162,700,000 + 2,885,000,000)
÷ 286,751,531 = 44.40
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 180.30 ÷ 44.40 = 4.06
5 Click competitor name to see calculations.
The analysis of the quarterly financial trends reveals several key patterns in share price, sales per share, and the price-to-sales (P/S) ratio over the time span from March 2018 to December 2021.
- Share Price
- The share price demonstrated an overall upward trend from $144.18 in March 2018 to a peak of $228.50 in March 2021, marking a significant increase over this three-year period. However, this was followed by a decline, with the price falling to $180.30 by the end of December 2021. The fluctuations show periods of appreciation generally until early 2021, after which the share price experienced volatility and a downward adjustment.
- Sales per Share
- Sales per share remained relatively stable around the $49-$51 range throughout 2018 and the first half of 2019. From the second half of 2019 onwards, sales per share exhibited a declining trend, decreasing steadily from approximately $51.73 in December 2019 to a low of $40.76 by March 2021. Following this trough, there was a modest recovery to $44.40 by December 2021, though levels did not return to those observed in the earlier periods.
- Price-to-Sales (P/S) Ratio
- The P/S ratio increased consistently from 2.94 in March 2018 to a high of 5.61 in March 2021, indicating that the market valuation of the company increased at a faster rate than its sales per share. This rise in the ratio suggests improving market sentiment or expectations despite the decline in sales per share. After peaking, the P/S ratio declined notably to 4.06 by December 2021, reflecting the adjustments in both share price and sales performance.
In summary, the data indicates a period of robust share price growth accompanied by stable sales per share initially, followed by a decline in sales per share starting mid-2019. The P/S ratio expanded significantly during this period, signaling increasing market valuation relative to sales, before retreating in the final quarters of 2021 along with the share price. These dynamics may suggest investor optimism that waned somewhat as sales performance deteriorated and as market conditions evolved toward the end of the analyzed timeframe.
Price to Book Value (P/BV)
Ecolab Inc., historical P/BV calculation (quarterly data)
| Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 286,751,531 | 286,567,307 | 286,087,223 | 285,937,396 | 285,849,956 | 285,445,183 | 285,384,775 | 289,201,752 | 288,166,440 | 288,244,379 | 287,751,846 | 288,242,150 | 287,853,232 | 288,873,052 | 288,903,662 | 288,520,477 | |||||
| Selected Financial Data (US$) | |||||||||||||||||||||
| Total Ecolab shareholders’ equity (in thousands) | 7,224,200) | 6,933,500) | 6,709,100) | 6,292,300) | 6,166,500) | 6,014,700) | 5,855,200) | 8,822,100) | 8,685,300) | 8,567,700) | 8,225,400) | 8,220,700) | 8,003,200) | 7,929,400) | 7,849,500) | 7,601,000) | |||||
| Book value per share (BVPS)2 | 25.19 | 24.20 | 23.45 | 22.01 | 21.57 | 21.07 | 20.52 | 30.51 | 30.14 | 29.72 | 28.59 | 28.52 | 27.80 | 27.45 | 27.17 | 26.34 | |||||
| Share price1, 3 | 180.30 | 222.22 | 218.18 | 228.50 | 209.36 | 183.59 | 194.20 | 194.12 | 180.45 | 192.07 | 200.93 | 184.32 | 170.16 | 152.73 | 146.34 | 144.18 | |||||
| Valuation Ratio | |||||||||||||||||||||
| P/BV ratio4 | 7.16 | 9.18 | 9.30 | 10.38 | 9.70 | 8.71 | 9.47 | 6.36 | 5.99 | 6.46 | 7.03 | 6.46 | 6.12 | 5.56 | 5.39 | 5.47 | |||||
| Benchmarks | |||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||
| Linde plc | 3.38 | 3.69 | 3.47 | 3.34 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Sherwin-Williams Co. | 28.55 | 30.80 | 26.67 | 23.23 | — | — | — | — | — | — | — | — | — | — | — | — | |||||
Based on: 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2021 Calculation
BVPS = Total Ecolab shareholders’ equity ÷ No. shares of common stock outstanding
= 7,224,200,000 ÷ 286,751,531 = 25.19
3 Closing price as at the filing date of Ecolab Inc. Quarterly or Annual Report.
4 Q4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 180.30 ÷ 25.19 = 7.16
5 Click competitor name to see calculations.
The share price of the company exhibited a generally upward trend from March 2018 through December 2021, with some volatility. Starting from approximately $144, the price increased steadily, reaching a peak above $228 in the first quarter of 2021 before declining to around $180 by the end of the year.
The book value per share (BVPS) demonstrated consistent growth over the analyzed period. Beginning near $26.34, the BVPS rose steadily each quarter to approximately $30.14 by December 2019. Subsequently, there was a sudden drop to around $20.52 in June 2020, which can indicate an unusual event affecting the company's equity during that time. However, following this decline, BVPS resumed a recovery trend, increasing gradually to reach $25.19 by December 2021.
The price-to-book value ratio (P/BV) reflected significant fluctuation during the period with a general increasing pattern until mid-2020, followed by some moderation towards the end of 2021. The ratio started around 5.47 in early 2018, climbing to over 7 by mid-2019. It then surged sharply to a high near 10.38 in the first quarter of 2021, indicating that the market price was significantly above the book value per share at that point. Later in 2021, the P/BV ratio declined to approximately 7.16, consistent with the concurrent share price decrease and BVPS recovery.
- Share Price Analysis
- Overall appreciation with cyclical peaks and troughs, peaking in Q1 2021 before a notable decline by year-end.
- Book Value Per Share (BVPS) Analysis
- Steady growth through most quarters, interrupted by a significant drop mid-2020, followed by gradual recovery.
- Price-to-Book Value Ratio (P/BV) Analysis
- Strong upward trend indicating market optimism or premium over book value, peaking in early 2021, then contracting in the latter part of the year.
The correlation between share price and BVPS movements suggests market adjustments to changes in company equity. The spike in P/BV during 2020-2021 reflects heightened market valuation relative to book value, possibly driven by external factors or market sentiment changes. The decline in both share price and P/BV at the end of 2021 indicates a reversion toward more moderate valuations.