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 | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | 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 | 17.45 | 18.78 | 14.41 | 82.36 | 23.64 | 19.47 | 22.63 | 22.44 | |||
| Price to next year expected earnings | 1.17 | 15.87 | 17.98 | 12.86 | 72.87 | 23.28 | 16.92 | 20.66 | 20.58 | |||
| Price-earnings-growth (PEG) | 0.01 | 1.76 | 4.21 | 1.19 | 6.33 | 15.11 | 1.30 | 2.37 | 2.48 | |||
| Price to operating profit (P/OP) | 5.66 | 34.26 | 10.17 | 11.84 | 81.44 | 18.51 | 8.68 | 16.77 | 18.57 | |||
| Price to sales (P/S) | 1.09 | 5.57 | 0.23 | 0.49 | 22.90 | 3.29 | 0.71 | 1.25 | 2.78 | |||
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).
The financial ratios for the analyzed periods reveal notable trends and variations in valuation metrics.
- Price to Earnings (P/E) Ratio
- The P/E ratio displayed a fluctuating trend over the years. Starting at 15.92 in 2017, it declined to 12.84 in 2018, then rose moderately to 14.3 in 2019 and further to 16.06 in 2020 before a significant drop to 10.65 in 2021. This pattern suggests varying market sentiment towards earnings, with a peak in 2020 and a notable reduction in 2021, possibly indicating a lower valuation relative to earnings during the last year.
- Price to Operating Profit (P/OP) Ratio
- This ratio rose from 5.82 in 2017 to a peak of 8.31 in 2020, showing an increasing premium placed on operating profits during the period. However, in 2021, the ratio decreased to 6.56, revealing a reversal of the upward trend observed in previous years. This volatility may reflect changing perceptions of operability profitability or market adjustments to operating performance expectations.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrated a consistent upward trajectory throughout the timeframe analyzed. It increased from 0.81 in 2017 to 1.04 in 2018, with slight fluctuations thereafter but maintaining growth, reaching 1.26 in 2021. This steady increase indicates increasing market valuation per unit of sales, implying improved investor confidence or sales quality perceptions over time.
- Price to Book Value (P/BV) Ratio
- Data for the P/BV ratio is notably sparse, with a singular high value reported at 105.4 in 2019 and missing data for other years. The isolated figure suggests an extreme valuation relative to book value during that year, but lack of additional data precludes further trend analysis.
Overall, the data indicate a general trend of increasing valuation relative to sales, fluctuating valuation relative to earnings and operating profits, and inadequate data to assess book value valuation trends comprehensively. The significant drop in the P/E ratio in 2021, combined with continued growth in the P/S ratio, may reflect changing investor priorities or market conditions influencing earnings expectations differently than top-line sales performance.
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 | — | — | — | |
| CVS Health Corp. | 17.39 | 12.88 | — | — | — | |
| Elevance Health Inc. | 18.13 | 15.87 | — | — | — | |
| Intuitive Surgical Inc. | 59.94 | 87.47 | — | — | — | |
| Medtronic PLC | 46.56 | 26.30 | — | — | — | |
| UnitedHealth Group Inc. | 26.03 | 20.54 | — | — | — | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 26.88 | 24.48 | — | — | — | |
| P/E Ratio, Industry | ||||||
| Health Care | 21.35 | 30.75 | — | — | — | |
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.
- Share Price
- The share price demonstrated a consistent upward trend across the five-year period. Starting at 100.84 US dollars at the end of 2017, it increased steadily each year, reaching 244.10 US dollars by the end of 2021. This reflects a significant appreciation in market value, more than doubling over the timeframe analyzed.
- Earnings per Share (EPS)
- EPS exhibited an overall increasing pattern with some fluctuation in the middle years. Beginning at 6.33 US dollars in 2017, EPS rose sharply to 11.06 US dollars in 2018, then dipped slightly to 10.36 US dollars in 2019. It recovered modestly to 11.04 US dollars in 2020 before experiencing a substantial increase to 22.91 US dollars in 2021. This indicates a strong acceleration in profitability in the latest year.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio showed variability over the period. Starting at 15.92 in 2017, it decreased to 12.84 in 2018, then increased moderately to 14.30 in 2019 and further to 16.06 in 2020. However, by the end of 2021, the ratio declined sharply to 10.65. This decline, concurrent with a substantial rise in EPS and share price, may suggest the stock became relatively more attractively valued by investors or that earnings growth outpaced the increase in share price.
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 | — | — | — | |
| CVS Health Corp. | 10.43 | 6.65 | — | — | — | |
| Elevance Health Inc. | 15.70 | 12.10 | — | — | — | |
| Intuitive Surgical Inc. | 56.11 | 88.37 | — | — | — | |
| Medtronic PLC | 37.44 | 26.29 | — | — | — | |
| UnitedHealth Group Inc. | 18.77 | 14.12 | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 19.92 | 17.16 | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Health Care | 17.67 | 22.32 | — | — | — | |
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.
- Share Price
- The share price exhibited a consistent upward trajectory over the five-year period. Starting at 100.84 USD at the end of 2017, it increased to 142.01 USD in 2018, followed by a moderate rise to 148.11 USD in 2019. In 2020, the increase accelerated, reaching 177.37 USD, and by the end of 2021, it experienced a substantial jump to 244.10 USD. This reflects strong market confidence and positive valuation trends.
- Operating Profit per Share (OPPS)
- Operating profit per share showed a steady increase from 17.33 USD in 2017 to 21.38 USD in 2019. The metric stabilized in 2020, with a slight dip to 21.34 USD, potentially indicating operational challenges or extraordinary factors during that year. However, in 2021, the OPPS surged significantly to 37.21 USD, suggesting improved profitability and operational efficiency or perhaps one-time gains affecting operating results.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio started at 5.82 in 2017 and experienced incremental increases through 2018 (6.88) and 2019 (6.93). In 2020, the ratio peaked at 8.31, indicating the share price grew faster relative to operating profit per share, possibly reflecting heightened market optimism or anticipation of future earnings growth despite flat OPPS. In 2021, the ratio decreased to 6.56, aligning more closely with earlier levels, which may imply either a normalization of the share price relative to operating profits or the significant growth in OPPS brought the ratio down.
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 | — | — | — | |
| CVS Health Corp. | 0.47 | 0.35 | — | — | — | |
| Elevance Health Inc. | 0.81 | 0.60 | — | — | — | |
| Intuitive Surgical Inc. | 17.89 | 21.29 | — | — | — | |
| Medtronic PLC | 5.57 | 4.36 | — | — | — | |
| UnitedHealth Group Inc. | 1.58 | 1.24 | — | — | — | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.48 | 1.29 | — | — | — | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.65 | 2.59 | — | — | — | |
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.
The annual financial data indicates a consistent upward trend in various key financial metrics over the five-year period ending in 2021.
- Share Price
- The share price displayed a significant increase from $100.84 in 2017 to $244.10 in 2021. This represents more than a twofold growth over the period, with a particularly notable acceleration in the last two years. The upward trajectory suggests growing investor confidence and market valuation.
- Sales per Share
- Sales per share also demonstrated steady growth, rising from $124.65 in 2017 to $193.52 in 2021. The growth was gradual between 2017 and 2019, with a slight plateau during 2020, likely reflecting external market or operational challenges that year. However, sales per share rebounded strongly in 2021, achieving the highest level recorded in the period.
- Price-to-Sales (P/S) Ratio
- The P/S ratio increased from 0.81 in 2017 to 1.26 in 2021, indicating that the company's stock price grew at a faster rate than its sales per share. This rising ratio suggests a higher valuation multiple being assigned by the market, potentially reflecting expectations of future growth or improved profitability.
Overall, the data reflects a company experiencing robust share price appreciation alongside solid sales growth per share. The increasing P/S ratio points to enhanced market sentiment or anticipated future performance improvements during the observed timeframe.
Price to Book Value (P/BV)
HCA Healthcare Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 303,600,000 | 339,917,500 | 338,427,300 | 342,376,700 | 349,903,700 | |
| Selected Financial Data (US$) | ||||||
| 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 | — | — | — | |
| CVS Health Corp. | 1.83 | 1.33 | — | — | — | |
| Elevance Health Inc. | 3.07 | 2.19 | — | — | — | |
| Intuitive Surgical Inc. | 8.59 | 9.53 | — | — | — | |
| Medtronic PLC | 3.26 | 2.48 | — | — | — | |
| UnitedHealth Group Inc. | 6.27 | 4.83 | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 4.16 | 3.51 | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.07 | 4.90 | — | — | — | |
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.
The analyzed financial data reveals several significant trends over the five-year period ending December 31, 2021. The share price exhibited consistent growth, increasing markedly each year from $100.84 in 2017 to $244.10 in 2021. This upward trajectory reflects a strong market valuation and investor confidence in the company over the observed time frame.
In contrast, the book value per share (BVPS) displayed a notably different pattern. Starting from a negative value of -$19.45 in 2017, the BVPS showed a gradual improvement up to 2020, turning positive to reach $1.68. However, in 2021, the BVPS declined again to -$3.07. This fluctuation suggests underlying volatility in the company's net asset values, potentially indicating periods of losses or write-downs affecting shareholders' equity.
The price-to-book value ratio (P/BV) is presented for only one year, 2020, where it was extraordinarily high at 105.4. This figure is consistent with the combination of a high share price and a very low, albeit positive, BVPS in that year. Such an elevated P/BV ratio typically suggests that the market is valuing the company significantly above its book value, which could be due to expectations of future profitability or intangible assets not reflected on the balance sheet.
Overall, the increasing share price juxtaposed with the fluctuating and generally negative book value per share suggests the market may be pricing in growth prospects or other qualitative factors beyond the current book equity. The extremely high P/BV ratio in 2020 further supports the notion that the market valuation is relying on factors other than book value. The negative BVPS in most years highlights that the company might have experienced accounting or operational challenges affecting net assets, yet this did not prevent a robust increase in market price over the period.