Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
- Aggregate Accruals
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Historical Valuation Ratios (Summary)
Johnson Controls International plc, historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31).
The financial ratios reveal distinct trends across the analyzed periods, reflecting variations in market valuation relative to earnings, operating profit, sales, and book value.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibits significant volatility over the timeline. Initially, it decreased sharply from 13.27 to about 5.5 by the end of 2019, indicating a valuation adjustment potentially due to increased earnings or market sentiment changes. A marked spike occurred in mid-2020, reaching an all-time high of 52.04, suggesting either a decline in earnings or heightened investor expectations. Following this peak, the ratio decreased gradually, fluctuating around the 20s in recent quarters, which may imply a stabilization of earnings or market valuation recalibration.
- Price to Operating Profit (P/OP) Ratio
- This ratio shows considerable fluctuations, beginning around 10.84 at the end of 2018 and escalating to 26.83 by the third quarter of 2019. It peaked sharply in mid-2020 at 62.11, indicating a significant decrease in operating profit relative to market price or elevated market valuations. After this peak, the ratio trended downward, with occasional increases, settling near the high teens to low twenties in recent periods. This trend points to a recovery or stabilization of operating profit relative to share price after the mid-2020 volatility.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrates a generally upward trend from around 1.03 at the end of 2018 to a peak of approximately 2.33 in late 2021. This increase suggests that investors place higher value on each unit of sales over time, possibly due to improved sales quality or growth prospects. Following this peak, the ratio declined somewhat but remained above 1.3 in recent quarters, indicating sustained investor confidence in sales performance despite some moderation.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio traces a steady upward movement from 1.51 at the end of 2018 to a high of 3.14 by the third quarter of 2021. This increase implies growing market valuation relative to the company's net asset value, reflecting positive investor sentiment or asset appreciation. After peaking, the ratio moderates but remains elevated in the range of approximately 2.2 to 2.8, signaling continued investor willingness to pay a premium over book value, albeit with some recent softening.
Overall, the data illustrates a period of heightened market volatility around mid-2020, with subsequent trends indicating partial normalization in valuation metrics. The increases in price to sales and price to book value ratios suggest market optimism about the company's growth and asset base, while the substantial fluctuations in price to earnings and price to operating profit ratios highlight earnings sensitivity and changing profitability perceptions during this timeframe.
Price to Earnings (P/E)
Johnson Controls International plc, historical P/E calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to Johnson Controls (in millions) | |||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2024 Calculation
EPS
= (Net income (loss) attributable to Johnson ControlsQ2 2024
+ Net income (loss) attributable to Johnson ControlsQ1 2024
+ Net income (loss) attributable to Johnson ControlsQ4 2023
+ Net income (loss) attributable to Johnson ControlsQ3 2023)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Johnson Controls International plc Quarterly or Annual Report.
4 Q2 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed periods.
- Share Price
- The share price exhibits volatility throughout the periods but shows an overall upward trend when viewed over the longer term. Initially, the price rose from $33.25 to a peak of approximately $42.23 in late 2019. A significant decline occurred in early 2020, concurrent with market disruptions, dropping to near $27.86. Following this, the price experienced a recovery and gradual increase, reaching a high of $78.33 in the third quarter of 2021. After peaking, the price declined again into early 2023, hovering around the mid-$50 range, before showing a mild recovery toward $60.47 by the first quarter of 2024. This pattern indicates susceptibility to external market factors but also resilience and recovery in the medium term.
- Earnings per Share (EPS)
- EPS demonstrates considerable fluctuations. It surged sharply in mid-2019, from $2.63 to highs above $7.3 for two consecutive quarters, suggesting a period of strong profitability or one-time gains. However, EPS sharply declined during the first half of 2020 to below $1.0, likely reflective of the challenging economic environment during that period. Thereafter, EPS gradually improved through 2021, stabilizing around $2.2 to $2.5. Subsequent quarters saw some fluctuations, with EPS ranging mostly between $1.5 and $3.1, indicating moderate earnings performance with occasional quarterly variability.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio displays high volatility, often inversely related to EPS and share price movements. Initially, the ratio remained low, around 13 to 15, then plunged to between approximately 4 and 6 during early 2020, coinciding with the peak EPS in 2019 and thus suggesting undervaluation relative to earnings at that time. However, from mid-2020 through 2021, the P/E ratio escalated sharply, reaching values above 50 during one quarter, signaling potentially overvalued share prices relative to their earnings or lower earnings temporarily. Following this peak, the P/E ratio steadily declined to values between approximately 17 and 36, aligning with more stabilized EPS and share prices. By early 2024, the ratio reflects a moderate valuation environment at about 24.
In summary, the data shows cyclical behavior influenced by external economic conditions, with share price and EPS both exhibiting recovery after substantial dips in early 2020. The fluctuations in P/E ratio underscore changing market valuations relative to earnings across the quarters, with periods of perceived overvaluation and undervaluation. Overall, the trends suggest cautious optimism, tempered by persistent quarterly variability in financial performance and market pricing.
Price to Operating Profit (P/OP)
Johnson Controls International plc, historical P/OP calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Operating income (loss) (in millions) | |||||||||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2024 Calculation
Operating profit per share
= (Operating income (loss)Q2 2024
+ Operating income (loss)Q1 2024
+ Operating income (loss)Q4 2023
+ Operating income (loss)Q3 2023)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Johnson Controls International plc Quarterly or Annual Report.
4 Q2 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and trends in the share price, operating profit per share, and the price-to-operating profit (P/OP) ratio over the observed periods.
- Share Price
- The share price demonstrated a general upward trajectory from late 2018 through early 2021, increasing from $33.25 to a peak of approximately $78.33. This period marked significant growth, with some intermittent decreases. Following this peak, a downward trend is evident from the first quarter of 2022 to the end of 2023, where the price declined to around $54.10. Slight recovery occurred in early 2024, with the share price rising again to $60.47. These fluctuations suggest periods of optimism as well as caution among investors during these years.
- Operating Profit Per Share
- Operating profit per share exhibited some volatility but generally followed a pattern of initial decline through 2019 and mid-2020, reaching lows around $0.62, followed by subsequent recovery and increases into 2021, peaking near $3.7 per share. Post this period, a gradual moderation in operating profit was observed with values trending downward from 2022 onwards, settling around $2.11 by early 2024. This pattern indicates initial operational challenges or increased costs, with subsequent improvements before a return to moderate profitability.
- Price-to-Operating Profit (P/OP) Ratio
- The P/OP ratio experienced significant volatility across the quarters. Early in the data, the ratio ranged modestly between 10.84 and 15.69, reflecting relatively balanced valuation compared to earnings. However, dramatic spikes occurred in mid-2020, with the ratio peaking above 60, indicating a disproportionate increase in share price relative to operating profit or a steep drop in profitability. Following this, the ratio normalized somewhat but remained elevated, fluctuating mostly between 18 and 33 through 2021 to early 2024. This suggests market valuation was often high relative to operating profit, potentially indicating investor expectations of future growth or volatility affecting earnings consistency.
In summary, the data shows a period of strong share price growth up to early 2021, aligned with improving operating profits. This was followed by share price volatility and a gradual decline, alongside fluctuating operating profitability. The P/OP ratio’s large swings reflect changes in market sentiment and operational performance, suggesting periods of uncertainty or adjustment in market valuation relative to profit generation capacity.
Price to Sales (P/S)
Johnson Controls International plc, historical P/S calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Net sales (in millions) | |||||||||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2024 Calculation
Sales per share
= (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Johnson Controls International plc Quarterly or Annual Report.
4 Q2 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited notable fluctuations throughout the analyzed periods. Initially, it rose steadily from $33.25 at the end of 2018 to a peak of $42.23 in September 2019. This was followed by a sharp decline to $27.86 in March 2020, likely reflecting broader market impacts. Subsequently, the price recovered robustly, reaching a high of $78.33 in September 2021. After this peak, the share price experienced a downward adjustment, stabilizing around the mid-$60 range into 2023, with values ranging between approximately $54 and $66 by early 2024.
- Sales Per Share Development
- Sales per share remained relatively stable with a gradual upward trajectory over the observed timeframe. Starting at $32.24 in late 2018, sales per share showed minor volatility but generally increased, reaching $39.83 by the first quarter of 2024. This steady growth indicates consistent revenue generation capability per share despite short-term market fluctuations.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio reflected significant variation in market valuation relative to sales per share. Initially around 1.03 at the end of 2018, the ratio increased to approximately 1.36 by September 2019, then plunged to 0.87 in March 2020, coinciding with the share price fall. Following this low, the P/S ratio ascended sharply, peaking at 2.33 in September 2021, underscoring heightened investor optimism or valuation multiples during this period. After the peak, the ratio declined to around 1.5 by mid-2022 but showed resilience by fluctuating between 1.3 and 1.8 through early 2024, indicating a moderation in valuation levels.
- Overall Insights
- The data indicates a market environment marked by volatility, particularly around early 2020, with a significant recovery phase leading up to late 2021. The gradual, steady increase in sales per share suggests stable operational performance. The P/S ratio trends imply that market sentiment and valuation multiples influenced the share price movements beyond fundamental sales growth. Recent stability in P/S ratios alongside maintained sales per share points to a more balanced valuation environment entering 2024.
Price to Book Value (P/BV)
Johnson Controls International plc, historical P/BV calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Shareholders’ equity attributable to Johnson Controls (in millions) | |||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2024 Calculation
BVPS = Shareholders’ equity attributable to Johnson Controls ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Johnson Controls International plc Quarterly or Annual Report.
4 Q2 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price displayed notable fluctuations over the observed periods. Starting at $33.25, it generally rose to reach a peak of $78.33 around September 2021. Afterwards, it experienced volatility with a downward trend until March 2023, dipping to approximately $54.1. A modest recovery followed, with the price climbing to $60.47 by March 2024. This suggests periods of both growth and correction within the timeframe.
- Book Value per Share (BVPS)
- BVPS remained relatively stable throughout the periods, beginning at $22.02 and maintaining a range within approximately $22 to $25. Minor fluctuations occurred, with some decline from the peak of around $25.62 in the middle of 2019 to a low near $23.16 in March 2023. The stability of BVPS indicates a consistent underlying book value, with limited dramatic changes in net asset values per share.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio mirrored the volatility seen in the share price but showed a more pronounced cyclical pattern. It moved from a low of 1.15 in March 2020 to a peak of 3.14 in September 2021, indicating that the share price was valued significantly above book value during market optimism. Post-peak, the ratio declined to around 2.22 in March 2024, reflecting a relative market correction and potentially more conservative valuation assessments. Overall, the ratio indicates periods of market optimism and subsequent normalization.
- Combined Insights
- The increase in share price through early to late 2021, despite relatively stable BVPS, suggests investor sentiment and market conditions played a significant role in driving valuation higher independent of fundamental book values. The P/BV ratio confirms that the market valued the company at a premium at its peak. Subsequently, a correction phase ensued, with share prices falling to more moderate levels while BVPS remained stable, reducing the P/BV ratio. This pattern points to market-driven price volatility with a stable underlying asset value base.