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
Kimberly-Clark Corp., current price multiples
| Kimberly-Clark Corp. | Procter & Gamble Co. | Consumer Staples | |||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Current share price (P) | $132.11 | ||||
| No. shares of common stock outstanding | 337,431,588 | ||||
| Growth rate (g) | 146.71% | ||||
| Earnings per share (EPS) | $6.97 | ||||
| Next year expected EPS | $17.20 | ||||
| Operating profit per share | $9.61 | ||||
| Sales per share | $56.72 | ||||
| Book value per share (BVPS) | $1.86 | ||||
| Valuation Ratios (Price Multiples) | |||||
| Price to earnings (P/E) | 18.95 | 25.84 | 40.83 | ||
| Price to next year expected earnings | 7.68 | 23.12 | 36.52 | ||
| Price-earnings-growth (PEG) | 0.13 | 2.20 | 3.46 | ||
| Price to operating profit (P/OP) | 13.74 | 20.33 | 30.97 | ||
| Price to sales (P/S) | 2.33 | 4.49 | 2.53 | ||
| Price to book value (P/BV) | 71.21 | 7.50 | 12.60 | ||
Based on: 10-K (reporting date: 2020-12-31).
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)
Kimberly-Clark Corp., historical price multiples
Based on: 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).
The financial data demonstrates varying ratios for the company over the five-year period from 2016 to 2020.
- Price to Earnings (P/E) Ratio
- This ratio shows fluctuations during the period, beginning at 20.22 in 2016, declining to 17.2 in 2017, spiking to a peak of 27.69 in 2018, then decreasing again to 22.94 in 2019 and further to 19 by the end of 2020. The general pattern suggests a peak valuation relative to earnings in 2018, followed by a moderation in market expectations or improved earnings relative to price thereafter.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio echoes a similar trend to the P/E ratio. Starting at 13.2 in 2016, it decreases to 11.87 in 2017, then rises sharply to 17.52 in 2018 and slightly declines to 16.54 in 2019, ending at 13.78 in 2020. The peak in 2018 indicates a period when market price was relatively high compared to operating profit, which then eased in the following years.
- Price to Sales (P/S) Ratio
- The P/S ratio begins at 2.41 in 2016 and decreases to 2.15 in 2017 and 2.11 in 2018, showing a consistent downward trend. The ratio then increases to 2.68 in 2019 before dropping to 2.34 in 2020. This suggests fluctuating investor valuation in relation to sales with a notable increase in 2019 signaling possibly improved sales prospects or market optimism during that year.
- Price to Book Value (P/BV) Ratio
- The data for P/BV ratio is sparse, with a value of 62.27 reported only in 2017 and a higher value of 71.4 in 2020. The intervening years lack data. These values are considerably high, suggesting that the market price was several times the book value during these years, indicative of strong investor confidence or a potentially overpriced equity relative to net asset value.
Overall, the data indicates that the company's market valuation metrics experienced peaks around 2018, followed by decreases, with the P/S ratio showing more volatility in 2019. The consistently high P/BV ratios in available years reflect significant investor premiums over book value, although incomplete data limits full trend analysis for this ratio.
Price to Earnings (P/E)
Kimberly-Clark Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 338,363,924 | 341,795,666 | 344,431,630 | 350,706,285 | 356,274,872 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to Kimberly-Clark Corporation (in millions) | 2,352) | 2,157) | 1,410) | 2,278) | 2,166) | |
| Earnings per share (EPS)2 | 6.95 | 6.31 | 4.09 | 6.50 | 6.08 | |
| Share price1, 3 | 132.09 | 144.74 | 113.36 | 111.69 | 122.93 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 19.00 | 22.94 | 27.69 | 17.20 | 20.22 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 25.85 | 78.69 | — | — | — | |
| P/E Ratio, Industry | ||||||
| Consumer Staples | 24.12 | — | — | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
EPS = Net income attributable to Kimberly-Clark Corporation ÷ No. shares of common stock outstanding
= 2,352,000,000 ÷ 338,363,924 = 6.95
3 Closing price as at the filing date of Kimberly-Clark Corp. Annual Report.
4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 132.09 ÷ 6.95 = 19.00
5 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends regarding the company's market valuation and profitability measures.
- Share Price
- The share price experienced a decline from $122.93 in 2016 to $111.69 in 2017, followed by a slight increase to $113.36 in 2018. A significant surge occurred in 2019, pushing the price to $144.74, which then retracted somewhat to $132.09 in 2020. Overall, the share price showed volatility but ended higher in 2020 than at the beginning of the period.
- Earnings per Share (EPS)
- EPS increased modestly from $6.08 in 2016 to $6.50 in 2017, then sharply dropped to $4.09 in 2018. It rebounded to $6.31 in 2019 and continued to grow to $6.95 in 2020. This pattern indicates a dip in earnings performance in 2018, with a recovery and improvement in the subsequent two years.
- Price to Earnings Ratio (P/E)
- The P/E ratio declined from 20.22 in 2016 to 17.20 in 2017, then spiked to 27.69 in 2018, reflecting the decreased EPS despite a stable share price. It subsequently decreased to 22.94 in 2019 and further to 19.00 in 2020, consistent with the EPS recovery and fluctuations in the share price.
In summary, the period was characterized by EPS volatility, with a notable dip in 2018, followed by recovery. The share price showed a peak in 2019 before a moderate correction in 2020. The P/E ratio movements appear largely responsive to earnings fluctuations rather than share price changes alone, signaling shifts in investor valuation metrics relative to earnings performance over these years.
Price to Operating Profit (P/OP)
Kimberly-Clark Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 338,363,924 | 341,795,666 | 344,431,630 | 350,706,285 | 356,274,872 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 3,244) | 2,991) | 2,229) | 3,299) | 3,317) | |
| Operating profit per share2 | 9.59 | 8.75 | 6.47 | 9.41 | 9.31 | |
| Share price1, 3 | 132.09 | 144.74 | 113.36 | 111.69 | 122.93 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 13.78 | 16.54 | 17.52 | 11.87 | 13.20 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 21.01 | 52.12 | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Staples | 18.29 | — | — | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 3,244,000,000 ÷ 338,363,924 = 9.59
3 Closing price as at the filing date of Kimberly-Clark Corp. Annual Report.
4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 132.09 ÷ 9.59 = 13.78
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated fluctuations over the examined period. Starting at $122.93 in 2016, the price decreased slightly to $111.69 in 2017, followed by a modest increase to $113.36 in 2018. A notable rise occurred in 2019, reaching $144.74, before declining to $132.09 in 2020. Overall, the share price exhibited variability with a peak in 2019.
- Operating Profit per Share
- Operating profit per share showed a generally stable trend with some volatility. It started at $9.31 in 2016 and increased marginally to $9.41 in 2017. However, 2018 witnessed a significant decrease to $6.47, indicating a dip in operating profitability per share. Subsequent years saw a recovery with $8.75 in 2019 and further improvement to $9.59 in 2020, surpassing the initial figures from 2016 and 2017.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio varied inversely with operating profit per share and share price movements. It began at 13.2 in 2016 and declined to 11.87 in 2017, correlating with a price decrease and slight profit increase. The ratio then peaked at 17.52 in 2018, reflecting the sharp decline in operating profit per share. Following this, it decreased to 16.54 in 2019 and further to 13.78 in 2020, aligning with the recovery in operating profit and fluctuations in share price. This pattern suggests market valuation adjusted in response to profitability changes over time.
Price to Sales (P/S)
Kimberly-Clark Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 338,363,924 | 341,795,666 | 344,431,630 | 350,706,285 | 356,274,872 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 19,140) | 18,450) | 18,486) | 18,259) | 18,202) | |
| Sales per share2 | 56.57 | 53.98 | 53.67 | 52.06 | 51.09 | |
| Share price1, 3 | 132.09 | 144.74 | 113.36 | 111.69 | 122.93 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 2.34 | 2.68 | 2.11 | 2.15 | 2.41 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 4.65 | 4.22 | — | — | — | |
| P/S Ratio, Industry | ||||||
| Consumer Staples | 1.49 | — | — | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 19,140,000,000 ÷ 338,363,924 = 56.57
3 Closing price as at the filing date of Kimberly-Clark Corp. Annual Report.
4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 132.09 ÷ 56.57 = 2.34
5 Click competitor name to see calculations.
The analysis of the annual financial data reveals several notable trends over the five-year period ending in 2020. The share price exhibits a general fluctuation pattern with an initial decline from 2016 to 2017, followed by a modest increase in 2018, a significant rise in 2019, and a slight decline in 2020.
- Share Price (US$)
- The share price decreased from $122.93 in 2016 to $111.69 in 2017, representing a notable dip. It then slightly increased to $113.36 in 2018, before sharply rising to $144.74 in 2019. In 2020, the share price declined to $132.09 but remained above the levels seen between 2016 and 2018, indicating some volatility but overall growth compared to the initial years.
- Sales Per Share (US$)
- Sales per share showed a consistent upward trend throughout the period. Starting at $51.09 in 2016, sales per share increased incrementally each year, reaching $56.57 in 2020. This steady rise suggests improving operational performance or revenue growth relative to the number of shares outstanding.
- Price-to-Sales (P/S) Ratio
- The P/S ratio generally declined from 2.41 in 2016 to 2.11 in 2018, reflecting either a relative increase in sales per share compared to share price, or market valuation adjustments. However, in 2019 there was a significant uptick to 2.68, indicating that the share price increased at a faster pace than sales per share that year. The ratio then decreased to 2.34 in 2020 but remained above the earlier years, suggesting the market continued to value the company's sales at a relatively higher multiple despite the slight decline from 2019.
Overall, the data indicates that sales per share improved steadily, supporting the company's revenue generation. The share price experienced fluctuations but showed a peak in 2019 with values above earlier years maintained in 2020. The P/S ratio's variation reflects changing investor sentiment and valuation relative to sales, with a notable premium valuation reached in 2019. These patterns suggest a positive operational trend complemented by some market variability in valuation over the period examined.
Price to Book Value (P/BV)
Kimberly-Clark Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 338,363,924 | 341,795,666 | 344,431,630 | 350,706,285 | 356,274,872 | |
| Selected Financial Data (US$) | ||||||
| Total Kimberly-Clark Corporation stockholders’ equity (in millions) | 626) | (33) | (287) | 629) | (102) | |
| Book value per share (BVPS)2 | 1.85 | -0.10 | -0.83 | 1.79 | -0.29 | |
| Share price1, 3 | 132.09 | 144.74 | 113.36 | 111.69 | 122.93 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 71.40 | — | — | 62.27 | — | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 7.09 | 6.06 | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Staples | 7.44 | — | — | — | — | |
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
BVPS = Total Kimberly-Clark Corporation stockholders’ equity ÷ No. shares of common stock outstanding
= 626,000,000 ÷ 338,363,924 = 1.85
3 Closing price as at the filing date of Kimberly-Clark Corp. Annual Report.
4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 132.09 ÷ 1.85 = 71.40
5 Click competitor name to see calculations.
The financial data over the five-year period demonstrates mixed trends in key metrics. The share price fluctuated notably during this time frame. Initially, there was a decline from 122.93 US$ at the end of 2016 to 111.69 US$ in 2017, followed by a minor increase to 113.36 US$ in 2018. Subsequently, a substantial rise occurred in 2019, reaching 144.74 US$, before falling back to 132.09 US$ in 2020. This volatility suggests varying market perceptions or external influences affecting the stock value.
Book value per share (BVPS) exhibited volatility and inconsistency, alternating between negative and positive values across the years. Specifically, BVPS was negative in 2016 (-0.29 US$) and 2018 (-0.83 US$), positive in 2017 (1.79 US$), slightly negative in 2019 (-0.10 US$), and positive again in 2020 (1.85 US$). This pattern indicates instability in the company's net asset value per share, which may reflect fluctuations in equity or retained earnings over the period.
The price-to-book value (P/BV) ratio data is limited, with 2017 and 2020 being the only years with reported values. The 2017 ratio is 62.27, while in 2020 it increased to 71.40. These exceptionally high ratios imply that the market price significantly exceeds the book value, which could be influenced by the negative BVPS figures in some years causing distortions in the ratio's interpretation. The absence of data for other years restricts comprehensive analysis but suggests potential valuation anomalies or accounting factors impacting the ratio.
Overall, the data reveals a pattern of share price volatility coupled with unstable book value per share figures. The disparity between market price and book value is pronounced, as reflected in the high P/BV ratios where available. These indicators point to underlying changes in financial position or market sentiment warranting further investigation to understand the drivers behind such fluctuations.