Price to Earnings (P/E)
since 2011
Calculation
LyondellBasell Industries N.V., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to the Company shareholders1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 21, 2019 | 7.01 | = | 88.50 | ÷ | 12.63 | 12.63 | = | 4,688 | ÷ | 371,156,998 | |
| Feb 22, 2018 | 8.96 | = | 110.83 | ÷ | 12.37 | 12.37 | = | 4,879 | ÷ | 394,556,328 | |
| Feb 17, 2017 | 9.75 | = | 92.91 | ÷ | 9.53 | 9.53 | = | 3,836 | ÷ | 402,531,335 | |
| Feb 16, 2016 | 7.52 | = | 77.93 | ÷ | 10.36 | 10.36 | = | 4,476 | ÷ | 432,200,532 | |
| Feb 17, 2015 | 10.28 | = | 89.94 | ÷ | 8.75 | 8.75 | = | 4,174 | ÷ | 477,142,443 | |
| Feb 20, 2014 | 12.16 | = | 85.80 | ÷ | 7.06 | 7.06 | = | 3,857 | ÷ | 546,551,455 | |
| Feb 12, 2013 | 12.22 | = | 60.51 | ÷ | 4.95 | 4.95 | = | 2,848 | ÷ | 575,304,233 | |
| Feb 29, 2012 | 11.54 | = | 43.18 | ÷ | 3.74 | 3.74 | = | 2,147 | ÷ | 573,708,873 |
Based on: 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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of LyondellBasell Industries N.V. Annual Report.
Between February 2012 and February 2019, a divergence is observed between earnings growth and market valuation. While profitability per share increased consistently over the period, the multiple that the market applied to those earnings experienced a general contraction.
- Earnings per Share (EPS) Growth
- A sustained upward trajectory in earnings per share is evident, rising from 3.74 USD in 2012 to 12.63 USD by 2019. This represents a significant and nearly continuous increase in profitability over the seven-year period, with the most substantial growth occurring between 2012 and 2016.
- Share Price Performance
- The share price exhibited an overall increase from 43.18 USD in 2012 to a peak of 110.83 USD in 2018. However, a reversal occurred in 2019, with the price declining to 88.50 USD, despite the fact that earnings per share continued to grow during that same interval.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio remained relatively stable between 11.54 and 12.22 from 2012 through 2014. Starting in 2015, a downward trend in the valuation multiple began, with the ratio falling to 7.52 in 2016. Although a brief recovery to 9.75 occurred in 2017, the ratio ultimately declined to its lowest point of 7.01 by February 2019.
- Valuation Analysis
- The combination of rising earnings and a falling P/E ratio indicates a compression of the valuation multiple. The market's willingness to pay for each dollar of earnings decreased over time, suggesting that the share price growth did not keep pace with the growth in fundamental earnings, particularly in the latter half of the period analyzed.
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Comparison to Competitors
LyondellBasell Industries N.V., P/E, long-term trends, comparison to competitors
| LyondellBasell Industries N.V. | Linde plc | Sherwin-Williams Co. | |
|---|---|---|---|
| Feb 21, 2019 | 7.01 | 19.41 | 36.79 |
| Feb 22, 2018 | 8.96 | 34.48 | 21.12 |
| Feb 17, 2017 | 9.75 | 22.87 | 25.74 |
| Feb 16, 2016 | 7.52 | 18.76 | 22.74 |
| Feb 17, 2015 | 10.28 | 21.92 | 31.54 |
| Feb 20, 2014 | 12.16 | 21.31 | 26.50 |
| Feb 12, 2013 | 12.22 | 19.64 | 26.48 |
| Feb 29, 2012 | 11.54 | 19.45 | 23.80 |
Based on: 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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
Comparison to Sector (Chemicals)
LyondellBasell Industries N.V., P/E, long-term trends, comparison to sector (chemicals)
| LyondellBasell Industries N.V. | Chemicals | |
|---|---|---|
| Feb 21, 2019 | 7.01 | 22.92 |
| Feb 22, 2018 | 8.96 | 26.64 |
| Feb 17, 2017 | 9.75 | 24.11 |
| Feb 16, 2016 | 7.52 | 20.37 |
| Feb 17, 2015 | 10.28 | 25.17 |
| Feb 20, 2014 | 12.16 | 22.86 |
| Feb 12, 2013 | 12.22 | 21.50 |
| Feb 29, 2012 | 11.54 | 20.36 |
Based on: 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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
Comparison to Industry (Materials)
LyondellBasell Industries N.V., P/E, long-term trends, comparison to industry (materials)
| LyondellBasell Industries N.V. | Materials | |
|---|---|---|
| Feb 21, 2019 | 7.01 | 17.75 |
| Feb 22, 2018 | 8.96 | 22.15 |
| Feb 17, 2017 | 9.75 | — |
| Feb 16, 2016 | 7.52 | — |
| Feb 17, 2015 | 10.28 | 69.44 |
| Feb 20, 2014 | 12.16 | 17.83 |
| Feb 12, 2013 | 12.22 | 15.06 |
| Feb 29, 2012 | 11.54 | 12.60 |
Based on: 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), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).