Price to Operating Profit (P/OP)
since 2005
Calculation
Fair Isaac Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 6, 2024 | 69.38 | = | 2,090.63 | ÷ | 30.13 | 30.13 | = | 733,629 | ÷ | 24,347,903 | |
| Nov 8, 2023 | 36.15 | = | 940.43 | ÷ | 26.01 | 26.01 | = | 642,830 | ÷ | 24,713,557 | |
| Nov 9, 2022 | 20.43 | = | 443.77 | ÷ | 21.72 | 21.72 | = | 542,414 | ÷ | 24,975,618 | |
| Nov 10, 2021 | 21.03 | = | 388.61 | ÷ | 18.48 | 18.48 | = | 505,489 | ÷ | 27,358,353 | |
| Nov 12, 2020 | 45.39 | = | 461.72 | ÷ | 10.17 | 10.17 | = | 295,969 | ÷ | 29,098,177 | |
| Nov 8, 2019 | 37.88 | = | 331.59 | ÷ | 8.75 | 8.75 | = | 253,548 | ÷ | 28,961,612 | |
| Nov 9, 2018 | 27.54 | = | 196.33 | ÷ | 7.13 | 7.13 | = | 206,437 | ÷ | 28,955,028 | |
| Nov 9, 2017 | 26.02 | = | 153.76 | ÷ | 5.91 | 5.91 | = | 177,200 | ÷ | 29,990,221 | |
| Nov 10, 2016 | 20.65 | = | 113.19 | ÷ | 5.48 | 5.48 | = | 169,592 | ÷ | 30,940,696 | |
| Nov 10, 2015 | 19.70 | = | 87.19 | ÷ | 4.42 | 4.42 | = | 137,505 | ÷ | 31,076,089 | |
| Nov 10, 2014 | 14.03 | = | 70.73 | ÷ | 5.04 | 5.04 | = | 161,868 | ÷ | 32,106,155 | |
| Nov 12, 2013 | 12.14 | = | 56.73 | ÷ | 4.67 | 4.67 | = | 161,593 | ÷ | 34,567,208 | |
| Nov 16, 2012 | 8.54 | = | 41.19 | ÷ | 4.82 | 4.82 | = | 168,358 | ÷ | 34,915,741 | |
| Nov 18, 2011 | 9.63 | = | 34.36 | ÷ | 3.57 | 3.57 | = | 127,337 | ÷ | 35,701,425 | |
| Nov 23, 2010 | 8.28 | = | 23.52 | ÷ | 2.84 | 2.84 | = | 113,349 | ÷ | 39,887,143 | |
| Nov 24, 2009 | 8.01 | = | 19.42 | ÷ | 2.42 | 2.42 | = | 116,747 | ÷ | 48,180,993 | |
| Nov 26, 2008 | 5.38 | = | 13.57 | ÷ | 2.52 | 2.52 | = | 122,283 | ÷ | 48,477,989 | |
| Nov 28, 2007 | 12.78 | = | 37.72 | ÷ | 2.95 | 2.95 | = | 148,474 | ÷ | 50,299,240 | |
| Dec 8, 2006 | 15.70 | = | 41.49 | ÷ | 2.64 | 2.64 | = | 152,723 | ÷ | 57,788,824 | |
| Dec 14, 2005 | 14.80 | = | 44.30 | ÷ | 2.99 | 2.99 | = | 193,011 | ÷ | 64,484,661 |
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Fair Isaac Corp. Annual Report.
The Price to Operating Profit (P/OP) ratio reflects a significant long-term expansion in market valuation relative to operating performance, evolving from a range of 5x to 15x in the first decade to a peak of 69.38x by 2024.
- Early Stability and the 2008 Contraction
- Between 2005 and 2007, the P/OP ratio remained relatively stable, fluctuating between 12.78 and 15.70. A sharp contraction occurred in 2008, where the ratio dropped to 5.38, coinciding with a significant decline in share price from 37.72 to 13.57. This period marked the lowest valuation multiple in the observed timeline, followed by a gradual recovery through 2013 as the ratio climbed back to 12.14.
- Steady Valuation Expansion (2014–2020)
- Starting in 2014, a consistent upward trend in the P/OP ratio is observed, rising from 14.03 to 45.39 by 2020. This expansion indicates that the market began assigning a progressively higher premium to each dollar of operating profit. During this phase, the share price increased at a rate that significantly outpaced the growth of operating profit per share, which grew from 5.04 in 2014 to 10.17 in 2020.
- Recent Volatility and Exponential Growth (2021–2024)
- A notable valuation correction occurred between 2021 and 2022, where the P/OP ratio compressed to 21.03 and 20.43, respectively. This compression was driven by a substantial increase in operating profit per share, which rose from 10.17 in 2020 to 18.48 in 2021 and 21.72 in 2022. However, the most aggressive valuation surge occurred in the final two years, with the P/OP ratio climbing to 36.15 in 2023 and reaching 69.38 in 2024. This final spike is attributed to an exponential increase in share price, which reached 2,090.63, far outpacing the growth in operating profit per share, which stood at 30.13 in 2024.
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Comparison to Competitors
Fair Isaac Corp., P/OP, long-term trends, comparison to competitors
| Fair Isaac Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 6, 2024 | 69.38 | 23.52 | 26.38 | 58.16 | 52.42 | 797.11 | 48.11 | 28.73 | 25.65 | 941.61 | 159.88 | 58.80 | 152.95 | 56.25 | 381.31 |
| Nov 8, 2023 | 36.15 | 21.69 | 40.52 | 31.12 | 65.43 | — | 49.04 | 27.76 | 25.30 | 431.61 | 193.40 | 177.62 | 206.26 | 67.90 | — |
| Nov 9, 2022 | 20.43 | 16.83 | 25.85 | — | 47.21 | — | 46.05 | 24.72 | 16.51 | — | — | 357.52 | 260.27 | 43.85 | — |
| Nov 10, 2021 | 21.03 | 28.35 | 40.64 | 111.61 | 48.13 | — | 62.00 | 30.79 | 14.31 | — | — | 431.39 | 436.46 | 75.64 | — |
| Nov 12, 2020 | 45.39 | 22.21 | 51.75 | — | 57.54 | — | 41.56 | 29.30 | 12.17 | — | — | 511.08 | 583.08 | 59.90 | — |
| Nov 8, 2019 | 37.88 | 18.63 | 51.63 | — | 40.67 | — | 40.45 | 24.54 | 13.83 | — | — | 223.46 | 1,590.34 | 40.48 | — |
| Nov 9, 2018 | 27.54 | 16.75 | 42.06 | — | 40.66 | — | 37.92 | 23.63 | 12.83 | — | — | 395.31 | — | 35.54 | — |
| Nov 9, 2017 | 26.02 | 19.47 | 44.86 | — | 35.08 | — | 25.94 | 24.93 | 16.52 | — | — | 908.77 | — | 37.64 | — |
| Nov 10, 2016 | 20.65 | 15.44 | 36.62 | — | 33.61 | — | 23.33 | 21.70 | 13.09 | — | — | 411.51 | — | 28.34 | — |
| Nov 10, 2015 | 19.70 | 15.66 | 49.21 | — | 22.23 | — | 31.60 | 20.57 | 12.84 | — | — | — | — | 25.82 | — |
| Nov 10, 2014 | 14.03 | 11.94 | 86.32 | — | 26.17 | — | 18.25 | 12.81 | 12.12 | — | — | — | — | 26.04 | — |
| Nov 12, 2013 | 12.14 | 11.50 | 71.49 | — | 22.85 | — | 15.12 | 9.91 | 9.51 | — | — | — | — | 24.81 | — |
| Nov 16, 2012 | 8.54 | 11.84 | 16.04 | — | 18.94 | — | 15.05 | 11.23 | 9.91 | — | 1,147.44 | — | — | 25.46 | — |
| Nov 18, 2011 | 9.63 | 11.55 | 14.01 | — | 26.88 | — | 14.19 | 8.55 | 13.61 | — | — | 166.46 | — | 18.21 | — |
| Nov 23, 2010 | 8.28 | 10.76 | 17.20 | — | — | — | 16.51 | 9.27 | 11.95 | — | — | 83.25 | — | 22.01 | — |
| Nov 24, 2009 | 8.01 | 10.49 | 26.10 | — | — | — | 13.11 | 10.42 | 12.94 | — | — | 59.54 | — | 15.18 | — |
| Nov 26, 2008 | 5.38 | 7.72 | 10.04 | — | — | — | 15.15 | 10.44 | 13.68 | — | — | 350.81 | — | 11.75 | — |
| Nov 28, 2007 | 12.78 | 12.16 | 22.98 | — | 9.72 | — | 15.13 | 56.63 | 16.87 | — | — | — | — | 32.49 | — |
| Dec 8, 2006 | 15.70 | 14.25 | 41.03 | — | 26.13 | — | 20.38 | 48.35 | 16.72 | — | — | 214.74 | — | 131.87 | — |
| Dec 14, 2005 | 14.80 | 10.72 | 31.95 | — | 43.13 | — | 15.31 | 59.14 | 17.01 | — | — | 233.65 | — | — | — |
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).