Lockheed Martin Corp. (NYSE:LMT)

The valuation ratios exhibit varied trends over the observed period. Generally, the ratios demonstrate increased volatility in later periods, particularly from the beginning of 2024 onwards. Initial values generally decreased through the first three quarters of 2023 before experiencing increases and fluctuations in subsequent quarters.

Price to Earnings (P/E)

The Price to Earnings ratio began at 19.45 and generally decreased to a low of 15.35 by December 2023. Subsequently, the ratio increased, peaking at 28.55 by December 2025. A notable increase is observed between March 2024 and June 2025, suggesting a shift in investor expectations regarding future earnings.

Price to Operating Profit (P/OP)

The Price to Operating Profit ratio followed a similar pattern to the P/E ratio, declining from 13.61 to 12.49 by December 2023. It then increased, reaching 18.58 in September 2025 and remaining relatively stable at 18.53 by the end of the period. This suggests a correlation between market valuation and operating profitability.

Price to Sales (P/S)

The Price to Sales ratio showed a more moderate fluctuation. It started at 1.84, decreased to 1.57 by December 2023, and then increased to 1.91 by December 2025. The ratio experienced a dip to 1.33 in June 2025, before recovering. This indicates a relatively stable relationship between price and revenue generation.

Price to Book Value (P/BV)

The Price to Book Value ratio demonstrated the most significant increase throughout the period. Starting at 12.08, it rose consistently to 21.31 by December 2025. This substantial increase suggests a growing premium placed on the company’s net asset value by investors, potentially reflecting increased confidence in future growth or a re-evaluation of asset quality. The largest increases occurred between March 2024 and December 2025.

Overall, the observed trends suggest a strengthening of market valuation relative to earnings, operating profit, sales, and book value, particularly in the latter part of the analyzed period. The increasing ratios may indicate growing investor optimism or a potential overvaluation, depending on underlying business fundamentals not reflected in these ratios alone.

The price-to-earnings (P/E) ratio exhibited fluctuations over the observed period, spanning from March 2022 to December 2025. Initially, the ratio demonstrated a degree of volatility, followed by a period of relative stability, and then a renewed increase towards the end of the analyzed timeframe.

Initial Period (Mar 27, 2022 – Dec 31, 2022)

The P/E ratio began at 19.45 and experienced an increase to 22.00 before decreasing to 19.28. It then rose again to 20.48 by the end of 2022, indicating moderate fluctuations during this timeframe. This period suggests a dynamic relationship between share price and earnings per share.

Decreasing Trend (Mar 26, 2023 – Sep 24, 2023)

A notable downward trend in the P/E ratio was observed from March 2023 through September 2023, declining from 22.32 to 15.71. This decrease coincided with an increase in earnings per share, suggesting that earnings growth was not fully reflected in the share price, or that the share price did not increase at the same rate as earnings.

Stabilization and Subsequent Increase (Dec 31, 2023 – Dec 31, 2025)

Following the decline, the P/E ratio stabilized around the 16 to 20 range for the first three quarters of 2024. However, a clear upward trend emerged in the latter part of 2024 and continued into 2025, culminating in a ratio of 28.55 by December 2025. This increase suggests growing investor optimism or a potential overvaluation relative to earnings. The share price increased more rapidly than earnings per share during this period.

Overall Volatility

The P/E ratio’s range expanded over the period, moving from a low of 15.35 to a high of 28.55. This indicates increasing volatility in the market’s valuation of the company’s earnings. The most significant changes occurred in the latter half of the observation period.

In summary, the P/E ratio demonstrated a complex pattern of fluctuations, a period of decline, and a subsequent increase. These movements suggest shifts in investor sentiment and the relative valuation of the company’s stock based on its earnings.

The Price to Operating Profit (P/OP) ratio for the observed period exhibits fluctuations, generally trending upward with notable variations. Initial values indicate a ratio around 13.61, followed by a decrease to 11.97 before stabilizing and increasing over subsequent quarters.

Initial Period (Mar 27, 2022 – Dec 31, 2022)

The P/OP ratio began at 13.61 and experienced a decline to 11.97, then demonstrated a recovery, reaching 14.06 by the end of 2022. This period suggests some volatility, potentially influenced by market conditions or investor sentiment.

Ascending Trend (Mar 26, 2023 – Sep 24, 2023)

From the first quarter of 2023 through the third quarter of 2023, the P/OP ratio increased from 15.02 to 12.87, indicating a growing premium investors were willing to pay for each dollar of operating profit. This could be attributed to positive company performance or broader market optimism.

Peak and Subsequent Decline (Sep 29, 2024 – Dec 31, 2024)

The ratio peaked at 15.88 in September 2024, before experiencing a significant decrease to 15.35 by the end of the year. This suggests a potential correction or shift in investor expectations.

Recent Fluctuations (Mar 30, 2025 – Dec 31, 2025)

The most recent period shows further volatility, with the P/OP ratio decreasing to 16.10 in March 2025, increasing to 18.58 in September 2025, and settling at 18.53 by the end of 2025. This indicates ongoing uncertainty or responsiveness to short-term events.

Overall, the P/OP ratio demonstrates a general tendency to increase over the observed timeframe, although punctuated by periods of decline. The ratio’s movement appears to be sensitive to quarterly earnings and broader market dynamics. The recent fluctuations suggest a period of increased investor scrutiny or changing perceptions of the company’s future profitability.

Comparison to Initial Values

The P/OP ratio at the end of the period (18.53) is notably higher than the initial value (13.61), indicating a substantial increase in the market’s valuation of the company’s operating profits over the observed timeframe.

Continued monitoring of this ratio, alongside other valuation metrics, is recommended to gain a more comprehensive understanding of the company’s financial health and investor sentiment.

The price-to-sales (P/S) ratio exhibited fluctuations over the observed period, spanning from March 2022 to December 2025. Initially, the ratio decreased from 1.84 to a low of 1.61 before showing some volatility and then increasing to 1.92 in March 2023. Subsequent quarters saw a decline to 1.57 by December 2023, followed by a rebound to 1.91 by December 2025.

Initial Decline (Mar 2022 - Jun 2022)

The P/S ratio experienced a decrease from 1.84 to 1.61 during the first two quarters of the period. This suggests a relative decrease in the market value assigned to each dollar of sales during this time. This could be due to various factors, including broader market corrections or company-specific concerns impacting investor sentiment.

Volatility and Peak (Sep 2022 - Mar 2023)

Following the initial decline, the ratio demonstrated volatility, moving between 1.75 and 1.92. The peak of 1.92 in March 2023 indicates a period where investors were willing to pay a higher premium for each dollar of sales, potentially reflecting positive expectations regarding future growth or profitability.

Subsequent Decline (Mar 2023 - Dec 2023)

A downward trend was observed from March 2023 to December 2023, with the P/S ratio decreasing from 1.92 to 1.57. This suggests a cooling of investor enthusiasm or a reassessment of the company’s sales potential. The decline could also be attributed to increased competition or macroeconomic headwinds.

Recent Recovery (Dec 2023 - Dec 2025)

The ratio showed a recovery in the latter part of the period, increasing from 1.57 to 1.91 by December 2025. This indicates renewed investor confidence and a willingness to pay a higher price relative to sales. The recovery may be linked to positive company performance, favorable industry developments, or improved market conditions.

Sales per Share Trend

Throughout the period, sales per share generally increased, moving from 247.08 to 326.18. This upward trend in sales per share is consistent with the overall fluctuations in the P/S ratio, as the denominator of the ratio increased over time. The P/S ratio’s movements reflect how investor valuation adjusted in relation to this increasing sales per share.

Overall, the P/S ratio demonstrated a cyclical pattern, with periods of decline, volatility, and recovery. The ratio’s movements appear to be influenced by a combination of factors, including investor sentiment, company performance, and broader market conditions. The recent recovery to 1.91 suggests a positive outlook, but continued monitoring is warranted to assess the sustainability of this trend.

The Price to Book Value (P/BV) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio decreased from 12.08 to 9.05 between March 27, 2022, and June 26, 2022, before exhibiting a modest recovery to 9.46 by September 25, 2022. A subsequent increase to 12.67 was noted by December 31, 2022.

Initial Fluctuations (Mar 27, 2022 – Dec 31, 2022)

The P/BV ratio experienced volatility during this period, moving between a low of 9.05 and a high of 12.67. This suggests shifting investor sentiment regarding the company’s valuation relative to its net asset value. The initial decline may reflect broader market corrections or company-specific concerns, while the later increase could indicate renewed confidence.

From March 26, 2023, through June 25, 2023, the P/BV ratio remained relatively stable, fluctuating between 12.31 and 13.16. However, a notable increase occurred between June 25, 2023, and September 29, 2024, peaking at 19.35. This period coincides with a significant rise in the share price, while the book value per share experienced more moderate growth.

Significant Increase (Jun 25, 2023 – Sep 29, 2024)

The substantial increase in the P/BV ratio during this timeframe indicates that the market was placing a considerably higher premium on the company’s net assets. This could be attributed to positive earnings announcements, optimistic future growth prospects, or a general increase in market risk appetite. The ratio’s peak of 19.35 suggests a potentially overvalued position relative to historical levels.

Following the peak, the P/BV ratio experienced a sharp decline to 17.00 by December 31, 2024, and continued to fluctuate between 16.20 and 18.33 through September 28, 2025. The most recent observation, December 31, 2025, shows a further increase to 21.31. This final increase suggests a renewed positive outlook, potentially driven by recent performance or anticipated future developments.

Recent Trends (Dec 31, 2024 – Dec 31, 2025)

The P/BV ratio’s recent behavior demonstrates continued volatility, although it has generally trended upwards from the low point in late 2024. The final value of 21.31 represents the highest point in the observed period, indicating a substantial premium placed on the company’s book value. This warrants further investigation to determine the sustainability of this valuation.

Overall, the P/BV ratio has exhibited a dynamic pattern over the analyzed period, reflecting changes in market perception and company performance. The ratio’s movement suggests that the company’s valuation relative to its book value is sensitive to market conditions and investor expectations.