Ford Motor Co. (NYSE:F)

Price to Earnings (P/E) Ratio

The P/E ratio displayed notable fluctuations over the analyzed period. Beginning at 11.3 in the first quarter of 2021, it peaked at 23.5 in the third quarter of 2021, followed by a steep decline to 4.01 by the end of that year. Throughout 2022, the ratio largely remained below 6, indicating relatively lower market expectations of earnings. In 2023, the P/E fluctuated moderately, reaching 16.34 in the first quarter and decreasing to 6.47 in the third quarter, suggesting variability in investor sentiment. The ratios for 2024 showed moderate stability around 11 to 13 before declining to 6.24 at year-end. Early 2025 saw an increase up to nearly 14 but settled back to 11.72 by the third quarter. Overall, the P/E ratio trend suggests periods of both optimism and caution from the market, with notable volatility during the earlier years tapering off into more moderate levels.

Price to Operating Profit (P/OP) Ratio

Data for the P/OP ratio begins from the second quarter of 2021, where it recorded a high 24.45 and rose sharply to 50.21 in the third quarter of 2021. Following this peak, a marked decline occurred through 2021 into 2022, stabilizing between roughly 6.7 and 11.4 for most of 2022 and early 2023. There was a low point of 5.49 in the third quarter of 2023. The second half of 2023 and 2024 showed moderate fluctuations, hovering around 9 to 11, before descending to near 7 at the start of 2025. However, by mid to late 2025, the ratio rose again to approximately 15. This pattern indicates a period of extreme valuation relative to operating profit early on, followed by a phase of normalization with moderate variability.

Price to Sales (P/S) Ratio

The P/S ratio started relatively low at 0.38 in early 2021, rising gradually to 0.57 by the end of that year. Subsequently, a clear downward trend is observable throughout 2022 and 2023, declining to a low of 0.24 in the third quarter of 2023. The ratio remained relatively depressed through 2024, fluctuating between 0.21 and 0.31, before showing a slight increase to 0.31 in the first quarter of 2025. This sustained decrease over time suggests diminishing market valuation on a sales basis, potentially reflecting market concerns about revenue growth or profitability sustainability.

Price to Book Value (P/BV) Ratio

The P/BV ratio was 1.33 at the start of 2021 and increased to a peak of 1.84 in the third quarter of the same year. Afterward, it declined steadily, reaching below 1.0 intermittently between late 2023 and early 2025, with the lowest point at 0.82 in the first half of 2025. However, there was a recovery towards 1.16 by the third quarter of 2025. The overall trend indicates a reduction in the market’s valuation relative to the company’s book value over the period, reflecting a potential reassessment of asset values or expectations of future profitability, with some signs of value rebound in the most recent quarters.

The financial data over the assessed quarters reveal notable fluctuations in key metrics including share price, earnings per share (EPS), and price-to-earnings (P/E) ratio. A comprehensive review of these trends can provide insights into the company's performance and market valuation.

Share Price

The share price exhibited a general upward trend from early 2021, peaking at 17.96 US$ in December 2021. Following that peak, the price declined throughout most of 2022, reaching a low point around 9.96 US$ in September 2023. Subsequently, a partial recovery occurred, with the share price rising again to 13.84 US$ by September 2025. This pattern indicates periods of volatility, with an initial strong market outlook followed by a phase of reduced investor confidence and then some recovery.

Earnings Per Share (EPS)

EPS showed considerable volatility over the quarters. It started at 1.00 US$ in March 2021 and experienced a significant spike to 4.48 US$ in December 2021. After this peak, EPS declined sharply, including a notable negative value of -0.50 US$ in December 2022, indicating a quarter of losses. Subsequently, EPS generally stabilized, ranging mostly between 0.70 and 1.50 US$ through 2023 and into 2025, with some fluctuations but no further extreme values. This suggests a period of earnings instability with signs of recovery to more moderate profitability levels.

Price-to-Earnings (P/E) Ratio

The P/E ratio was quite variable. It began at 11.3 in March 2021, rose sharply to a high of 23.5 in September 2021 before collapsing to a low of 4.01 in December 2021. This collapse corresponds with the substantial rise in EPS noted at the same period, indicating a moment of strong earnings relative to price. Throughout 2022 and 2023, the P/E ratio fluctuated mostly between 5 and 16, reflecting changing market perceptions of the company’s earnings prospects. By late 2024 and into 2025, the ratio showed moderate values around 6 to 14, suggesting a relative normalization in investor valuation relative to earnings.

Overall, the company's financial indicators reveal a cycle of strong earnings growth and high share price valuation in late 2021, followed by a period of earnings contraction and share price depreciation through 2022 and mid-2023. The subsequent quarters indicate efforts at earnings stabilization and partial recovery in market price, resulting in more moderate valuation multiples by 2025. The volatility in earnings and market valuation suggests challenges in sustaining profitability and investor confidence consistently over the time span analyzed.

Share Price Trend

The share price demonstrated an overall volatile pattern throughout the periods. Starting at $11.26 in March 2021, the price increased steadily to a peak of $17.96 by December 2021. Following this peak, the price declined with fluctuations, reaching a low of $9.26 in December 2024. In the latest quarters, the share price showed signs of recovery, rising again to $13.84 by September 2025.

Operating Profit Per Share (OPPS)

The operating profit per share exhibited a significant improvement from negative territory in March 2021 (-$0.10) to positive and generally increasing values in subsequent periods. After the initial negative value, OPPS rose to as high as $1.81 by September 2023. From that point onward, a gradual decline is observable, with values reducing to $0.74 in September 2025, indicating some pressure on operating profitability in the later quarters.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio showed notable variability across the timeline. After being undefined in March 2021 due to negative operating profit, it peaked at 50.21 in September 2021, reflecting a relatively high share price compared to operating earnings. Subsequently, the ratio decreased significantly, stabilizing generally between 5.49 and 15.24 in the later periods. The most recent figures suggest an increase in the ratio again, reaching 15.24 by September 2025, which may imply the market is paying a higher premium for each unit of operating profit relative to previous quarters.

Overall Insights

There exists a clear correlation between the share price movement and operating profit per share fluctuations, with share price peaks generally following periods of stronger operating profit. The volatility in the P/OP ratio further reflects the market’s shifting valuation perspective over time, influenced by both profitability changes and external factors potentially impacting investor sentiment. While operating profitability improved markedly post-2021, recent declines suggest emerging challenges affecting earnings efficiency. The partial recovery in share price by late 2025 might indicate renewed investor confidence despite softer operating profit margins.

Share Price Trends

The share price experienced notable fluctuations over the examined periods. It initially increased from $11.26 to a peak of $17.96 by the end of 2021. Subsequently, it declined to values around the $13 mark through the first half of 2023, with a low of $9.96 recorded in September 2023. The price showed some recovery towards the end of 2023 and into 2024, peaking at $13.04 in March 2024, but declined again throughout 2024, reaching a low of $9.26 in December 2024. In the early months of 2025, the share price rebounded, rising to $13.84 by September 2025.

Sales Per Share Development

Sales per share demonstrated a consistent upward trajectory. Starting at $29.60 in March 2021, these figures increased steadily over the period, reaching $44.29 by September 2025. This indicates continuous growth in sales efficiency or revenue generation relative to the number of shares outstanding, with no significant downturns observed.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio showed a declining trend over the entire period, starting from 0.38 in March 2021, peaking briefly at 0.57 by December 2021, then steadily falling to as low as 0.21 in December 2024. Despite some minor fluctuations in early 2025, the ratio remained relatively low compared to earlier levels, increasing slightly to 0.31 by September 2025. This decreasing P/S ratio, despite rising sales per share, reflects a lagging or underperforming share price relative to sales growth, which could imply that the market valuations have not fully adjusted to the improved sales performance or that investors perceive other risks or challenges.

Summary Insights

The analyzed data reveals a scenario of increasing sales per share indicative of improving operational performance or revenue expansion. However, the share price trends show volatility and an overall decline after the 2021 peak. The falling P/S ratio suggests that market valuation has not kept pace with sales growth, potentially highlighting an undervaluation or market skepticism. The partial recovery in share price and P/S ratio in the early months of 2025 could point toward changing investor sentiment or improved market conditions. Overall, while fundamental sales metrics show strength, market valuation measures suggest cautious investor outlook during most of the period.

Share Price Trends

The share price exhibited an overall fluctuating trend across the examined quarters. Starting relatively low, the price rose significantly to a peak in late 2021, reaching near 18 US dollars, suggesting a period of positive market sentiment or operational performance. Subsequently, the share price experienced a downward correction through 2022, dropping to approximately 13 US dollars. The price continued to fluctuate modestly through 2023 and early 2024, demonstrating intermittent recoveries and declines. From mid-2024, the share price showed signs of gradual appreciation, culminating in a notable increase to nearly 14 US dollars in the third quarter of 2025.

Book Value Per Share (BVPS) Dynamics

Book value per share saw a continuous and steady increase over the period, beginning at around 8.47 US dollars in early 2021 and rising to almost 11.89 US dollars by the third quarter of 2025. This steady upward trajectory indicates consistent growth in net asset value on a per-share basis, reflecting enhanced equity base or accumulation of retained earnings, providing a supportive fundamental value underpinning the share price movements.

Price-to-Book Value Ratio (P/BV) Analysis

The price-to-book ratio showed variability but generally declined from a high of approximately 1.84 in the third quarter of 2021 to a low near 0.82 by the end of 2024. This suggests that the stock price was trading increasingly closer to or below the book value during this period, potentially indicating market undervaluation or dampened investor expectations. Early 2025 displayed a modest rebound in the P/BV ratio to above 1.0, aligning with the observed share price recovery and signaling improved market perception of the company's value relative to its net asset base.

Overall Financial Insights

The financial indicators collectively reveal a company undergoing a period of initial growth and optimistic valuation, followed by a phase of market adjustment and valuation compression. Despite share price volatility, the consistent increase in book value per share underscores strengthening underlying asset values. The P/BV ratio movements reflect shifts in market sentiment and valuation multiples, with recent increases suggesting renewed confidence and potential value recognition by investors in 2025.