Price to Operating Profit (P/OP)
since 2013
Calculation
IQVIA Holdings Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Income from operations1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 15, 2023 | 23.44 | = | 227.03 | ÷ | 9.69 | 9.69 | = | 1,799 | ÷ | 185,722,621 | |
| Feb 16, 2022 | 31.75 | = | 232.18 | ÷ | 7.31 | 7.31 | = | 1,393 | ÷ | 190,485,264 | |
| Feb 12, 2021 | 50.41 | = | 192.66 | ÷ | 3.82 | 3.82 | = | 731 | ÷ | 191,281,286 | |
| Feb 18, 2020 | 40.95 | = | 165.42 | ÷ | 4.04 | 4.04 | = | 777 | ÷ | 192,339,093 | |
| Feb 19, 2019 | 37.73 | = | 141.49 | ÷ | 3.75 | 3.75 | = | 741 | ÷ | 197,599,861 | |
| Feb 16, 2018 | 29.46 | = | 101.72 | ÷ | 3.45 | 3.45 | = | 719 | ÷ | 208,251,468 | |
| Feb 16, 2017 | 28.22 | = | 76.87 | ÷ | 2.72 | 2.72 | = | 642 | ÷ | 235,719,111 | |
| Feb 11, 2016 | 10.89 | = | 59.00 | ÷ | 5.42 | 5.42 | = | 647 | ÷ | 119,384,993 | |
| Feb 12, 2015 | 13.32 | = | 63.25 | ÷ | 4.75 | 4.75 | = | 590 | ÷ | 124,315,113 | |
| Feb 13, 2014 | 14.66 | = | 52.20 | ÷ | 3.56 | 3.56 | = | 462 | ÷ | 129,842,707 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of IQVIA Holdings Inc. Annual Report.
The financial trajectory between February 2014 and February 2023 is characterized by a significant expansion and subsequent contraction of the Price to Operating Profit (P/OP) multiple, coinciding with a long-term appreciation in share price and a late-stage surge in operating efficiency.
- Share Price Trend
- A consistent upward trajectory is observed from 2014 to 2022, with the share price increasing from US$ 52.20 to a peak of US$ 232.18. A marginal correction occurred in 2023, with the price settling at US$ 227.03.
- Operating Profit per Share Performance
- Operating profit per share exhibited volatility, rising to US$ 5.42 by 2016 before experiencing a sharp decline to US$ 2.72 in 2017. Following this trough, a gradual recovery occurred until 2021, followed by an accelerated increase to US$ 7.31 in 2022 and US$ 9.69 in 2023, marking the highest levels in the analyzed period.
- P/OP Ratio Dynamics
- The P/OP ratio transitioned through three distinct phases. Between 2014 and 2016, the ratio contracted from 14.66 to 10.89, indicating that operating profit growth outpaced share price appreciation. From 2017 to 2021, a period of aggressive multiple expansion occurred, with the ratio peaking at 50.41, suggesting a valuation driven by high market expectations or a disconnect between the share price and current operating earnings. In the final two years, the ratio declined to 23.44 as substantial increases in operating profit per share began to normalize the valuation relative to the share price.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
IQVIA Holdings Inc., P/OP, long-term trends, comparison to competitors
| IQVIA Holdings Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Gilead Sciences Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|
| Feb 15, 2023 | 23.44 | 14.78 | 13.40 | 20.97 | 14.21 | 18.01 | 25.30 | 17.75 |
| Feb 16, 2022 | 31.75 | 14.21 | 16.24 | 25.14 | 7.76 | 7.55 | 21.07 | 22.35 |
| Feb 12, 2021 | 50.41 | 16.32 | 14.96 | 36.91 | 19.38 | 14.82 | 22.81 | 19.16 |
| Feb 18, 2020 | 40.95 | 10.82 | 13.84 | 34.47 | 20.66 | 19.01 | 26.84 | 51.98 |
| Feb 19, 2019 | 37.73 | 18.35 | 11.46 | 23.18 | 10.15 | 17.53 | 27.33 | 74.57 |
| Feb 16, 2018 | 29.46 | 19.63 | 12.71 | 22.48 | 7.45 | 16.71 | 28.24 | 331.55 |
| Feb 16, 2017 | 28.22 | 10.49 | 12.64 | 21.37 | 5.23 | 28.70 | 25.13 | 2,143.58 |
| Feb 11, 2016 | 10.89 | 11.61 | 13.07 | 17.27 | 5.50 | 30.74 | 22.15 | — |
| Feb 12, 2015 | 13.32 | 28.64 | 19.13 | 17.94 | 10.19 | 49.17 | 20.63 | — |
| Feb 13, 2014 | 14.66 | 14.31 | 16.19 | 16.24 | 28.54 | 42.99 | 30.40 | — |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).