Microsoft Excel LibreOffice Calc

Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

Exxon Mobil Corp., current price multiples

Microsoft Excel LibreOffice Calc
Exxon Mobil Corp. Chevron Corp. ConocoPhillips EOG Resources Inc. Occidental Petroleum Corp. Phillips 66 Oil & Gas Producers Oil & Gas
Selected Financial Data
Current share price (P) $ 81.97
No. shares of common stock outstanding 4,233,810,348
Growth rate (g) 3.17%
 
Earnings per share (EPS) $ 4.66
Next year expected EPS $ 4.80
Operating profit per share $ 2.85
Sales per share $ 56.02
Book value per share (BVPS) $ 44.33
Ratios (Price Multiples)
Price to earnings (P/E) 17.61 24.62 26.39 42.10 9.34 22.37 27.98
Price to next year expected earnings 17.07 24.39 26.82 40.82 8.40 25.03 28.54
Price-earnings-growth (PEG) 5.55 25.91 13.42 0.83
Price to operating profit (P/OP) 28.74 91.28 73.57 100.36 27.66 63.27 57.24
Price to sales (P/S) 1.46 1.68 2.89 6.08 4.41 0.47 1.57 1.66
Price to book value (P/BV) 1.85 1.53 2.75 4.19 2.68 1.90 1.93 1.94

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Exxon Mobil Corp., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Price to earnings (P/E) 16.28 42.80 20.96 11.56 12.71
Price to operating profit (P/OP) 26.58 358.52 26.28 11.03 10.27
Price to sales (P/S) 1.35 1.54 1.30 0.95 0.98
Price to book value (P/BV) 1.71 2.01 1.98 2.16 2.38
Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Exxon Mobil Corp.'s P/E ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Exxon Mobil Corp.'s P/OP ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Exxon Mobil Corp.'s P/S ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Exxon Mobil Corp.'s P/BV ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

Price to Earnings (P/E)

Exxon Mobil Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 4,237,462,159 4,146,513,819 4,152,756,609 4,194,690,266 4,321,238,544
Selected Financial Data (USD $)
Net income attributable to ExxonMobil (in millions) 19,710  7,840  16,150  32,520  32,580 
Earnings per share (EPS)3 4.65 1.89 3.89 7.75 7.54
Share price1, 2 75.74 80.93 81.52 89.60 95.79
Ratio
P/E ratio4 16.28 42.80 20.96 11.56 12.71
Benchmarks
P/E Ratio, Competitors
Chevron Corp. 22.83 35.02 10.61 10.04
ConocoPhillips 12.03 8.91
EOG Resources Inc. 23.96 17.93 22.43
Occidental Petroleum Corp. 39.87 99.82 12.93
Phillips 66 9.01 26.19 9.99 8.83 11.82
P/E Ratio, Sector
Oil & Gas Producers 20.39 208.26 82.26 12.23 11.74
P/E Ratio, Industry
Oil & Gas 26.85 83.30 13.64 12.61

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Exxon Mobil Corp.'s Annual Report.

2017 Calculations

3 EPS = Net income attributable to ExxonMobil ÷ No. shares of common stock outstanding
= 19,710,000,000 ÷ 4,237,462,159 = 4.65

4 P/E ratio = Share price ÷ EPS
= 75.74 ÷ 4.65 = 16.28

Ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Exxon Mobil Corp.'s P/E ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

Price to Operating Profit (P/OP)

Exxon Mobil Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 4,237,462,159 4,146,513,819 4,152,756,609 4,194,690,266 4,321,238,544
Selected Financial Data (USD $)
Operating income (in millions) 12,074  936  12,883  34,082  40,301 
Operating profit per share3 2.85 0.23 3.10 8.13 9.33
Share price1, 2 75.74 80.93 81.52 89.60 95.79
Ratio
P/OP ratio4 26.58 358.52 26.28 11.03 10.27
Benchmarks
P/OP Ratio, Competitors
Chevron Corp. 84.64 10.35 7.91
ConocoPhillips 11.84 7.31
EOG Resources Inc. 66.80 9.97 13.41
Occidental Petroleum Corp. 95.05 9.40
Phillips 66 26.68 40.09 9.54 13.31 17.29
P/OP Ratio, Sector
Oil & Gas Producers 57.68 12.06 9.46
P/OP Ratio, Industry
Oil & Gas 54.92 12.33 9.92

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Exxon Mobil Corp.'s Annual Report.

2017 Calculations

3 Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 12,074,000,000 ÷ 4,237,462,159 = 2.85

4 P/OP ratio = Share price ÷ Operating profit per share
= 75.74 ÷ 2.85 = 26.58

Ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Exxon Mobil Corp.'s P/OP ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.

Price to Sales (P/S)

Exxon Mobil Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 4,237,462,159 4,146,513,819 4,152,756,609 4,194,690,266 4,321,238,544
Selected Financial Data (USD $)
Sales and other operating revenue (in millions) 237,162  218,608  259,488  394,105  420,836 
Sales per share3 55.97 52.72 62.49 93.95 97.39
Share price1, 2 75.74 80.93 81.52 89.60 95.79
Ratio
P/S ratio4 1.35 1.54 1.30 0.95 0.98
Benchmarks
P/S Ratio, Competitors
Chevron Corp. 1.56 1.91 1.24 1.02 0.98
ConocoPhillips 2.21 2.51 1.38 1.57 1.50
EOG Resources Inc. 5.52 7.38 4.30 2.90 3.40
Occidental Petroleum Corp. 4.18 4.94 4.27 3.18 3.12
Phillips 66 0.45 0.48 0.43 0.26 0.26
P/S Ratio, Sector
Oil & Gas Producers 1.43 1.66 1.25 0.97 0.97
P/S Ratio, Industry
Oil & Gas 1.59 1.90 1.33 1.11 1.08

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Exxon Mobil Corp.'s Annual Report.

2017 Calculations

3 Sales per share = Sales and other operating revenue ÷ No. shares of common stock outstanding
= 237,162,000,000 ÷ 4,237,462,159 = 55.97

4 P/S ratio = Share price ÷ Sales per share
= 75.74 ÷ 55.97 = 1.35

Ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Exxon Mobil Corp.'s P/S ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level.

Price to Book Value (P/BV)

Exxon Mobil Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 4,237,462,159 4,146,513,819 4,152,756,609 4,194,690,266 4,321,238,544
Selected Financial Data (USD $)
Total ExxonMobil share of equity (in millions) 187,688  167,325  170,811  174,399  174,003 
Book value per share (BVPS)3 44.29 40.35 41.13 41.58 40.27
Share price1, 2 75.74 80.93 81.52 89.60 95.79
Ratio
P/BV ratio4 1.71 2.01 1.98 2.16 2.38
Benchmarks
P/BV Ratio, Competitors
Chevron Corp. 1.42 1.44 1.05 1.32 1.44
ConocoPhillips 2.10 1.70 1.02 1.59 1.57
EOG Resources Inc. 3.80 4.04 2.91 2.95 3.20
Occidental Petroleum Corp. 2.54 2.32 2.19 1.76 1.77
Phillips 66 1.83 1.82 1.83 1.95 2.01
P/BV Ratio, Sector
Oil & Gas Producers 1.76 1.85 1.59 1.80 1.93
P/BV Ratio, Industry
Oil & Gas 1.86 1.98 1.60 1.93 2.05

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Exxon Mobil Corp.'s Annual Report.

2017 Calculations

3 BVPS = Total ExxonMobil share of equity ÷ No. shares of common stock outstanding
= 187,688,000,000 ÷ 4,237,462,159 = 44.29

4 P/BV ratio = Share price ÷ BVPS
= 75.74 ÷ 44.29 = 1.71

Ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company's required rate of return and its actual rate of return. Exxon Mobil Corp.'s P/BV ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017.