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
HCA Healthcare Inc., current price multiples
| HCA Healthcare Inc. | Abbott Laboratories | Cigna Group | CVS Health Corp. | Elevance Health Inc. | Humana Inc. | Intuitive Surgical Inc. | Medtronic PLC | Shockwave Medical Inc. | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||
| Current share price (P) | $216.30 | ||||||||||||||
| No. shares of common stock outstanding | 295,484,400 | ||||||||||||||
| Growth rate (g) | 686.54% | ||||||||||||||
| Earnings per share (EPS) | $23.54 | ||||||||||||||
| Next year expected EPS | $185.16 | ||||||||||||||
| Operating profit per share | $38.24 | ||||||||||||||
| Sales per share | $198.83 | ||||||||||||||
| Book value per share (BVPS) | $-3.16 | ||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||
| Price to earnings (P/E) | 9.19 | 32.40 | 20.07 | 10.15 | 20.95 | 15.08 | 73.61 | 28.00 | 83.54 | 20.34 | 23.90 | 23.41 | |||
| Price to next year expected earnings | 1.17 | 30.32 | 18.02 | 9.57 | 18.62 | 12.83 | 64.85 | 27.44 | 106.72 | 17.35 | 21.67 | 21.23 | |||
| Price-earnings-growth (PEG) | 0.01 | 4.72 | 1.77 | 1.66 | 1.68 | 0.86 | 5.45 | 13.68 | — | 1.18 | 2.32 | 2.28 | |||
| Price to operating profit (P/OP) | 5.66 | 28.62 | 12.14 | 6.17 | 16.47 | 9.35 | 74.91 | 19.19 | 77.33 | 14.07 | 17.74 | 19.32 | |||
| Price to sales (P/S) | 1.09 | 4.62 | 0.53 | 0.24 | 0.74 | 0.36 | 18.58 | 3.37 | 16.85 | 1.24 | 1.19 | 2.55 | |||
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)
HCA Healthcare Inc., 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).
| Valuation 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. | HCA Healthcare Inc. P/E ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| 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. | HCA Healthcare Inc. P/OP ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| 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. | HCA Healthcare Inc. P/S ratio increased from 2019 to 2020 and from 2020 to 2021. |
Price to Earnings (P/E)
HCA Healthcare Inc., 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 | 303,600,000 | 339,917,500 | 338,427,300 | 342,376,700 | 349,903,700 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to HCA Healthcare, Inc. (in millions) | 6,956) | 3,754) | 3,505) | 3,787) | 2,216) | |
| Earnings per share (EPS)2 | 22.91 | 11.04 | 10.36 | 11.06 | 6.33 | |
| Share price1, 3 | 244.10 | 177.37 | 148.11 | 142.01 | 100.84 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 10.65 | 16.06 | 14.30 | 12.84 | 15.92 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 29.13 | 48.49 | 41.83 | — | — | |
| Cigna Group | 13.43 | 8.71 | 13.26 | — | — | |
| CVS Health Corp. | 17.39 | 12.88 | 14.15 | — | — | |
| Elevance Health Inc. | 18.13 | 15.87 | 15.96 | — | — | |
| Humana Inc. | 18.34 | 14.48 | 18.10 | — | — | |
| Intuitive Surgical Inc. | 59.94 | 87.47 | 48.72 | — | — | |
| Medtronic PLC | 46.56 | 26.30 | 28.78 | 37.80 | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | 26.03 | 20.54 | 20.48 | — | — | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 25.14 | 21.21 | 21.68 | — | — | |
| P/E Ratio, Industry | ||||||
| Health Care | 21.30 | 29.05 | 21.25 | — | — | |
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 attributable to HCA Healthcare, Inc. ÷ No. shares of common stock outstanding
= 6,956,000,000 ÷ 303,600,000 = 22.91
3 Closing price as at the filing date of HCA Healthcare Inc. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 244.10 ÷ 22.91 = 10.65
5 Click competitor name to see calculations.
| Valuation 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. | HCA Healthcare Inc. P/E ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Price to Operating Profit (P/OP)
HCA Healthcare Inc., 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 | 303,600,000 | 339,917,500 | 338,427,300 | 342,376,700 | 349,903,700 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 11,298) | 7,255) | 7,236) | 7,070) | 6,065) | |
| Operating profit per share2 | 37.21 | 21.34 | 21.38 | 20.65 | 17.33 | |
| Share price1, 3 | 244.10 | 177.37 | 148.11 | 142.01 | 100.84 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 6.56 | 8.31 | 6.93 | 6.88 | 5.82 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 24.45 | 40.69 | 34.03 | — | — | |
| Cigna Group | 9.08 | 9.03 | 8.38 | — | — | |
| CVS Health Corp. | 10.43 | 6.65 | 7.83 | — | — | |
| Elevance Health Inc. | 15.70 | 12.10 | 13.55 | — | — | |
| Humana Inc. | 17.08 | 9.78 | 15.35 | — | — | |
| Intuitive Surgical Inc. | 56.11 | 88.37 | 48.89 | — | — | |
| Medtronic PLC | 37.44 | 26.29 | 21.26 | 17.64 | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | 18.77 | 14.12 | 14.40 | — | — | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 18.65 | 15.69 | 15.26 | — | — | |
| P/OP Ratio, Industry | ||||||
| Health Care | 17.58 | 21.54 | 17.40 | — | — | |
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 ÷ No. shares of common stock outstanding
= 11,298,000,000 ÷ 303,600,000 = 37.21
3 Closing price as at the filing date of HCA Healthcare Inc. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 244.10 ÷ 37.21 = 6.56
5 Click competitor name to see calculations.
| Valuation 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. | HCA Healthcare Inc. P/OP ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Price to Sales (P/S)
HCA Healthcare Inc., 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 | 303,600,000 | 339,917,500 | 338,427,300 | 342,376,700 | 349,903,700 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | 58,752) | 51,533) | 51,336) | 46,677) | 43,614) | |
| Sales per share2 | 193.52 | 151.60 | 151.69 | 136.33 | 124.65 | |
| Share price1, 3 | 244.10 | 177.37 | 148.11 | 142.01 | 100.84 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.26 | 1.17 | 0.98 | 1.04 | 0.81 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.78 | 6.30 | 4.83 | — | — | |
| Cigna Group | 0.42 | 0.46 | 0.44 | — | — | |
| CVS Health Corp. | 0.47 | 0.35 | 0.37 | — | — | |
| Elevance Health Inc. | 0.81 | 0.60 | 0.74 | — | — | |
| Humana Inc. | 0.65 | 0.64 | 0.76 | — | — | |
| Intuitive Surgical Inc. | 17.89 | 21.29 | 15.01 | — | — | |
| Medtronic PLC | 5.57 | 4.36 | 4.36 | 3.92 | — | |
| Shockwave Medical Inc. | 26.40 | 60.01 | 21.46 | — | — | |
| UnitedHealth Group Inc. | 1.58 | 1.24 | 1.18 | — | — | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.25 | 1.10 | 1.05 | — | — | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.32 | 2.26 | 2.17 | — | — | |
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 = Revenues ÷ No. shares of common stock outstanding
= 58,752,000,000 ÷ 303,600,000 = 193.52
3 Closing price as at the filing date of HCA Healthcare Inc. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 244.10 ÷ 193.52 = 1.26
5 Click competitor name to see calculations.
| Valuation 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. | HCA Healthcare Inc. P/S ratio increased from 2019 to 2020 and from 2020 to 2021. |
Price to Book Value (P/BV)
HCA Healthcare Inc., 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 | 303,600,000 | 339,917,500 | 338,427,300 | 342,376,700 | 349,903,700 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. (in millions) | (933) | 572) | (2,808) | (4,950) | (6,806) | |
| Book value per share (BVPS)2 | -3.07 | 1.68 | -8.30 | -14.46 | -19.45 | |
| Share price1, 3 | 244.10 | 177.37 | 148.11 | 142.01 | 100.84 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | — | 105.40 | — | — | — | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.75 | 6.65 | 4.96 | — | — | |
| Cigna Group | 1.53 | 1.46 | 1.49 | — | — | |
| CVS Health Corp. | 1.83 | 1.33 | 1.47 | — | — | |
| Elevance Health Inc. | 3.07 | 2.19 | 2.42 | — | — | |
| Humana Inc. | 3.34 | 3.55 | 4.07 | — | — | |
| Intuitive Surgical Inc. | 8.59 | 9.53 | 8.13 | — | — | |
| Medtronic PLC | 3.26 | 2.48 | 2.66 | 2.31 | — | |
| Shockwave Medical Inc. | 25.89 | 18.03 | 4.78 | — | — | |
| UnitedHealth Group Inc. | 6.27 | 4.83 | 4.92 | — | — | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.78 | 3.21 | 3.09 | — | — | |
| P/BV Ratio, Industry | ||||||
| Health Care | 4.89 | 4.68 | 4.49 | — | — | |
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 = Stockholders’ equity (deficit) attributable to HCA Healthcare, Inc. ÷ No. shares of common stock outstanding
= -933,000,000 ÷ 303,600,000 = -3.07
3 Closing price as at the filing date of HCA Healthcare Inc. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 244.10 ÷ -3.07 = —
5 Click competitor name to see calculations.