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.
- Share Price Trend
- The share price demonstrated a consistent upward trajectory from 2014 through 2022, increasing from $52.20 to a peak of $232.18. The greatest annual increases occurred between 2017 and 2018, and 2021 and 2022. However, a slight decline was observed in 2023, where the price decreased to $227.03 from $232.18 the previous year.
- Operating Profit Per Share (OPPS)
- The operating profit per share showed a generally positive growth trend over the period. Starting at $3.56 in 2014, OPPS rose steadily to $5.42 by 2016, before experiencing a notable dip to $2.72 in 2017. From 2017 onward, the metric increased continuously, peaking at $9.69 in 2023, indicating improved operational efficiency or profitability in recent years.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio exhibited varied dynamics over the years. Initially, it decreased from 14.66 in 2014 to a low of 10.89 in 2016, suggestive of the stock becoming more attractively valued relative to its operating profits. From 2017, the ratio spiked sharply, reaching a high of 50.41 in 2021, implying elevated market expectations or price appreciation beyond operating profit growth. Subsequently, it declined to 23.44 by 2023, reflecting a partial normalization or correction in the valuation relative to operating profits.
- Overall Analysis
- The data reveals strong capital growth in the share price over the ten-year span, aligned with a general improvement in operating profit per share, despite some volatility in intermediate years. The fluctuations in the P/OP ratio suggest periods of changing market sentiment and valuation adjustments, with a peak around 2021 followed by a notable correction. The recent years indicate a phase of valuation realignment concurrent with significant gains in operating profitability.
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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).