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
Hess Corp., current price multiples
| Hess Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | $147.76 | ||||||||
| No. shares of common stock outstanding | 307,151,680 | ||||||||
| Growth rate (g) | -6.24% | ||||||||
| Earnings per share (EPS) | $6.82 | ||||||||
| Next year expected EPS | $6.40 | ||||||||
| Operating profit per share | $13.15 | ||||||||
| Sales per share | $36.87 | ||||||||
| Book value per share (BVPS) | $25.57 | ||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | 21.65 | 37.84 | 23.16 | 26.69 | 12.93 | 13.23 | |||
| Price to next year expected earnings | 23.09 | 36.19 | 20.65 | 24.63 | 11.64 | 11.92 | |||
| Price to operating profit (P/OP) | 11.24 | 21.87 | 13.66 | 18.21 | 8.97 | 9.23 | |||
| Price to sales (P/S) | 4.01 | 2.52 | 3.14 | 2.38 | 1.99 | 2.02 | |||
| Price to book value (P/BV) | 5.78 | 2.50 | 2.87 | 2.97 | 3.53 | 3.57 | |||
Based on: 10-K (reporting date: 2022-12-31).
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)
Hess Corp., historical price multiples
Based on: 10-K (reporting date: 2022-12-31), 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).
The valuation multiples exhibit diverging trends between profitability-based metrics and asset-based metrics over the five-year period. While earnings and operating profit multiples contracted significantly in the latter part of the period, the market premium attributed to book value increased consistently.
- Price to Earnings (P/E)
- A significant reduction is observed between 2021 and 2022, with the ratio falling from 56.19 to 20.30. This sharp decline suggests a substantial increase in earnings relative to the share price during this interval.
- Price to Operating Profit (P/OP)
- A general downward trajectory is evident following a peak of 32.87 in 2019. The ratio declined to 15.94 in 2021 and further to 10.53 by the end of 2022, indicating that operating profits grew at a faster rate than the market valuation of the equity.
- Price to Sales (P/S)
- The ratio experienced moderate growth in the early period, rising from 2.76 in 2018 to a peak of 4.31 in 2020. This was followed by a slight contraction to 3.76 by December 31, 2022.
- Price to Book Value (P/BV)
- A continuous and strong upward trend is observed, with the ratio increasing every year from 1.82 in 2018 to 5.42 in 2022. This suggests a growing market premium over the accounting value of the company's net assets.
Overall, the data indicates a transition toward lower earnings-based multiples alongside a strengthening asset-based valuation, reflecting a shift in how the market priced the company's profitability relative to its book value.
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Price to Earnings (P/E)
Hess Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 306,180,424 | 309,745,523 | 306,986,553 | 305,214,587 | 303,034,262 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to Hess Corporation common stockholders (in millions) | 2,096) | 559) | (3,093) | (412) | (328) | |
| Earnings per share (EPS)2 | 6.85 | 1.80 | -10.08 | -1.35 | -1.08 | |
| Share price1, 3 | 138.95 | 101.40 | 65.53 | 64.72 | 57.68 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 20.30 | 56.19 | — | — | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | 8.71 | 16.81 | — | — | — | |
| ConocoPhillips | 7.07 | 14.66 | — | — | — | |
| Exxon Mobil Corp. | 8.01 | 14.11 | — | — | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 8.08 | 15.11 | — | — | — | |
| P/E Ratio, Industry | ||||||
| Energy | 8.54 | 15.67 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income (loss) attributable to Hess Corporation common stockholders ÷ No. shares of common stock outstanding
= 2,096,000,000 ÷ 306,180,424 = 6.85
3 Closing price as at the filing date of Hess Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 138.95 ÷ 6.85 = 20.30
5 Click competitor name to see calculations.
A significant transition in financial performance and market valuation is evident between 2018 and 2022. The period is characterized by a consistent increase in share price coinciding with a shift from substantial net losses to robust profitability.
- Share Price Trajectory
- The share price exhibited a steady upward trend over the five-year period, rising from 57.68 US$ in 2018 to 138.95 US$ by the end of 2022. The most pronounced acceleration occurred between 2020 and 2022, where the price more than doubled.
- Earnings Per Share (EPS) Recovery
- Negative earnings were recorded from 2018 through 2020, with a significant deterioration occurring in 2020 when EPS reached a low of -10.08 US$. A pivot to profitability was achieved in 2021 with an EPS of 1.80 US$, followed by a substantial increase to 6.85 US$ in 2022, indicating a strong recovery in operational profitability.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio was not applicable for the first three years due to negative earnings. Upon the return to profitability in 2021, the P/E ratio was initially high at 56.19, suggesting a high market premium or an initial recovery phase where price gains outpaced earnings growth. By 2022, the ratio compressed to 20.30, reflecting a normalization of the valuation as earnings growth accelerated more rapidly than the share price.
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Price to Operating Profit (P/OP)
Hess Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 306,180,424 | 309,745,523 | 306,986,553 | 305,214,587 | 303,034,262 | |
| Selected Financial Data (US$) | ||||||
| Income (loss) before interest and income taxes (in millions) | 4,039) | 1,971) | (2,382) | 601) | 672) | |
| Operating profit per share2 | 13.19 | 6.36 | -7.76 | 1.97 | 2.22 | |
| Share price1, 3 | 138.95 | 101.40 | 65.53 | 64.72 | 57.68 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 10.53 | 15.94 | — | 32.87 | 26.01 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 6.12 | 11.40 | — | — | — | |
| ConocoPhillips | 4.57 | 8.66 | — | — | — | |
| Exxon Mobil Corp. | 5.65 | 9.86 | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 5.60 | 10.13 | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 5.95 | 10.52 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Income (loss) before interest and income taxes ÷ No. shares of common stock outstanding
= 4,039,000,000 ÷ 306,180,424 = 13.19
3 Closing price as at the filing date of Hess Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 138.95 ÷ 13.19 = 10.53
5 Click competitor name to see calculations.
An analysis of the valuation metrics from 2018 to 2022 reveals a significant divergence between share price appreciation and operating profitability, culminating in a substantial compression of the Price to Operating Profit (P/OP) multiple.
- Share Price Trend
- A consistent upward trajectory is observed in the share price, which ascended from 57.68 US$ in 2018 to 138.95 US$ by the end of 2022. The most pronounced acceleration in market value occurred between 2021 and 2022.
- Operating Profitability
- Operating profit per share exhibited extreme volatility during the period. Following a marginal decline between 2018 and 2019, a severe contraction occurred in 2020, with profit per share falling to -7.76 US$. A robust recovery ensued, with operating profit per share rising to 6.36 US$ in 2021 and reaching a peak of 13.19 US$ in 2022.
- P/OP Ratio Dynamics
- The P/OP ratio reflects the volatility of the underlying earnings. The ratio increased from 26.01 in 2018 to 32.87 in 2019. In 2020, the ratio was not calculable due to the negative operating profit. Upon the return to profitability in 2021, the ratio contracted sharply to 15.94 and further declined to 10.53 in 2022. This downward trend in the multiple, occurring simultaneously with a rising share price, indicates that the growth in operating profitability significantly outpaced the increase in market valuation during the final two years of the analyzed period.
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Price to Sales (P/S)
Hess Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 306,180,424 | 309,745,523 | 306,986,553 | 305,214,587 | 303,034,262 | |
| Selected Financial Data (US$) | ||||||
| Sales and other operating revenues (in millions) | 11,324) | 7,473) | 4,667) | 6,495) | 6,323) | |
| Sales per share2 | 36.98 | 24.13 | 15.20 | 21.28 | 20.87 | |
| Share price1, 3 | 138.95 | 101.40 | 65.53 | 64.72 | 57.68 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 3.76 | 4.20 | 4.31 | 3.04 | 2.76 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.31 | 1.69 | — | — | — | |
| ConocoPhillips | 1.68 | 2.58 | — | — | — | |
| Exxon Mobil Corp. | 1.12 | 1.17 | — | — | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.24 | 1.48 | — | — | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.31 | 1.52 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Sales and other operating revenues ÷ No. shares of common stock outstanding
= 11,324,000,000 ÷ 306,180,424 = 36.98
3 Closing price as at the filing date of Hess Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 138.95 ÷ 36.98 = 3.76
5 Click competitor name to see calculations.
Between 2018 and 2022, the valuation multiples exhibited a non-linear progression, characterized by a mid-period peak followed by a moderation in the Price-to-Sales (P/S) ratio. The most significant movement occurred between 2020 and 2022, where substantial growth in operational performance interacted with market valuation.
- Share Price Progression
- A consistent upward trend in share price is observed, ascending from 57.68 US$ in 2018 to 138.95 US$ by the end of 2022. The most rapid acceleration occurred between 2020 and 2022, indicating a significant increase in the market's valuation of the equity.
- Sales per Share Volatility
- Revenue per share demonstrated a cyclical pattern, experiencing a notable contraction to 15.20 US$ in 2020 before recovering sharply to reach 36.98 US$ by 2022. This recovery represents a substantial expansion in top-line performance during the final two years of the analyzed period.
- P/S Ratio Interpretation
- The P/S ratio increased from 2.76 in 2018 to a peak of 4.31 in 2020. This peak coincided with the period of lowest sales per share, suggesting that the share price remained resilient despite a decline in revenue. From 2020 to 2022, the ratio trended downward to 3.76; this decline indicates that the growth in sales per share outpaced the growth in share price, leading to a lower multiple relative to revenue.
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Price to Book Value (P/BV)
Hess Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 306,180,424 | 309,745,523 | 306,986,553 | 305,214,587 | 303,034,262 | |
| Selected Financial Data (US$) | ||||||
| Total Hess Corporation stockholders’ equity (in millions) | 7,855) | 6,300) | 5,366) | 8,732) | 9,629) | |
| Book value per share (BVPS)2 | 25.65 | 20.34 | 17.48 | 28.61 | 31.78 | |
| Share price1, 3 | 138.95 | 101.40 | 65.53 | 64.72 | 57.68 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 5.42 | 4.99 | 3.75 | 2.26 | 1.82 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.94 | 1.89 | — | — | — | |
| ConocoPhillips | 2.75 | 2.61 | — | — | — | |
| Exxon Mobil Corp. | 2.29 | 1.93 | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.21 | 2.00 | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 2.30 | 2.07 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Total Hess Corporation stockholders’ equity ÷ No. shares of common stock outstanding
= 7,855,000,000 ÷ 306,180,424 = 25.65
3 Closing price as at the filing date of Hess Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 138.95 ÷ 25.65 = 5.42
5 Click competitor name to see calculations.
A significant expansion in the market valuation of the company relative to its book value is observed between 2018 and 2022. The Price to Book Value (P/BV) ratio exhibits a consistent upward trajectory, increasing from 1.82 in 2018 to 5.42 by the end of 2022, indicating that the market has assigned an increasingly higher premium to the company's net assets over this five-year period.
- Share Price Performance
- The share price demonstrated sustained growth throughout the analyzed period. Following a moderate increase between 2018 and 2020, the price experienced accelerated growth, rising from 65.53 in 2020 to 138.95 in 2022. This represents a substantial increase in market capitalization that outpaced the growth of the underlying book value.
- Book Value per Share (BVPS) Fluctuations
- The BVPS experienced a period of volatility, characterized by a downward trend from 31.78 in 2018 to a low of 17.48 in 2020. A subsequent recovery occurred between 2021 and 2022, with the value rising to 25.65. Despite this recovery, the BVPS remained below 2018 levels, creating a diverging trend relative to the share price.
- P/BV Ratio Dynamics
- The P/BV ratio expanded most aggressively between 2020 and 2022. The sharp increase from 3.75 in 2020 to 5.42 in 2022 was driven by the simultaneous occurrence of rapidly rising share prices and a depressed book value base. This trend suggests a shift in investor sentiment, where valuation is driven more by growth expectations, intangible assets, or future earnings potential rather than the historical cost of tangible assets.
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