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).
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Marathon Oil Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Total Asset Turnover since 2005
- Analysis of Revenues
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Current Valuation Ratios
Marathon Oil Corp., current price multiples
| Marathon Oil Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Occidental Petroleum Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | ||||||||||
| No. shares of common stock outstanding | ||||||||||
| Growth rate (g) | ||||||||||
| Earnings per share (EPS) | ||||||||||
| Next year expected EPS | ||||||||||
| Operating profit per share | ||||||||||
| Sales per share | ||||||||||
| Book value per share (BVPS) | ||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | ||||||||||
| Price to next year expected earnings | ||||||||||
| Price to operating profit (P/OP) | ||||||||||
| Price to sales (P/S) | ||||||||||
| Price to book value (P/BV) | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
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)
Marathon Oil Corp., historical price multiples
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 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).
- Price to earnings (P/E) ratio
- The P/E ratio exhibits fluctuations over the observed periods. It was 12.46 in 2018, increased to 16.99 in 2019, and then slightly decreased to 16.91 in 2021. Data for 2017 and 2020 are not available, but the trend from available years indicates a general increase followed by stabilization near the higher level.
- Price to operating profit (P/OP) ratio
- The P/OP ratio shows an upward trajectory from 8.19 in 2018 to 12.83 in 2019, followed by a minor decline to 12.23 in 2021. This pattern suggests growing market valuation relative to operating profit through 2019, with a modest correction thereafter. The absence of data for 2017 and 2020 limits the full assessment of trend continuity.
- Price to sales (P/S) ratio
- The P/S ratio demonstrates variability across the timeline. Starting at 2.95 in 2017, it decreases steadily to 1.61 in 2019, indicating a declining market valuation relative to sales. However, it rebounds in 2020 and 2021 to 2.84 and 2.86 respectively, suggesting a recovery or improvement in valuation relative to sales in the most recent periods.
- Price to book value (P/BV) ratio
- The P/BV ratio declines from 1.10 in 2017 to a low of 0.67 in 2019, indicating a period where the market valued the company below its book value. In subsequent years, there is an upward trend to 0.83 in 2020 and more sharply to 1.50 in 2021, suggesting a strengthening market confidence and potentially improved asset valuation or profitability reflected in the share price.
Price to Earnings (P/E)
Marathon Oil Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/E Ratio, Industry | ||||||
| Energy | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated considerable volatility over the analyzed period. Beginning at $15.18 at the end of 2017, it increased moderately to $16.68 in 2018. However, it declined significantly to $10.25 by the end of 2019. A minor recovery was observed in 2020, with the price rising slightly to $11.16, followed by a substantial surge to $21.89 in 2021, representing the highest value in the five-year span.
- Earnings Per Share (EPS) Trend
- EPS exhibited marked fluctuations throughout the timeframe. In 2017, the EPS was negative at -$6.73, indicating a loss per share. A recovery occurred in 2018, with EPS turning positive at $1.34. This positive trend weakened in 2019, as EPS declined to $0.60 but remained positive. In 2020, EPS again turned negative to -$1.84, reflecting a return to losses. By 2021, EPS rebounded to $1.29, recovering to a positive position.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio was not available in 2017 and 2020, years corresponding to negative EPS values, given the standard practice of not calculating P/E when earnings are negative. For positive earnings years, the P/E ratio was 12.46 in 2018 and increased to 16.99 in 2019, indicating a higher price multiple relative to earnings. In 2021, the P/E ratio slightly decreased to 16.91, suggesting a stabilization after the prior increase. These ratios imply that the market valued the company more highly relative to its earnings in 2019 and 2021 compared to 2018.
- Overall Observations
- The data reveals a pattern of volatility in both market valuation and profitability. Despite fluctuations in EPS including two years of losses, the share price ended the period substantially higher than it began. The intermittent positive earnings and corresponding P/E ratios suggest investor confidence improved especially towards the latter years, particularly 2021. Nonetheless, the variability in profitability highlights underlying operational challenges or external factors impacting earnings over the analyzed years.
Price to Operating Profit (P/OP)
Marathon Oil Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/OP Ratio, Industry | ||||||
| Energy | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The financial data over the five-year period displays notable fluctuations in share price, operating profit per share, and the price-to-operating profit ratio. A detailed examination reveals the following trends and insights:
- Share Price (US$)
- The share price experienced moderate growth from 15.18 in 2017 to 16.68 in 2018. This was followed by a sharp decline to 10.25 in 2019, likely reflecting market or operational challenges during that year. In 2020, the price showed a slight increase to 11.16, suggesting some recovery. A significant improvement occurred in 2021, with the share price nearly doubling to 21.89, indicating renewed investor confidence or improved fundamentals.
- Operating Profit per Share (US$)
- Operating profit per share was negative in 2017 at -0.16, marking a period of operating losses. It then rebounded strongly to positive 2.04 in 2018, signifying improved operational efficiency or better market conditions. The upward trend continued in 2019, albeit at a lower value of 0.8, indicating diminished profitability. In 2020, the figure returned to negative territory at -1.5, highlighting operational challenges possibly linked to external factors such as market disruptions. In 2021, operating profit per share recovered to 1.79, demonstrating a return to profitability.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio data is incomplete but provides insight for 2018, 2019, and 2021. In 2018, the ratio was 8.19, suggesting the share price was trading at a moderate premium relative to operating profit. In 2019, this ratio increased significantly to 12.83 despite diminished operating profit per share, indicating potentially higher market expectations or share price valuation relative to earnings. Data for 2020 is missing, coinciding with negative operating profit, making the ratio undefined. In 2021, the ratio slightly declined to 12.23, reflecting the combination of a higher share price and improved operating profits but still reflecting relatively high valuation levels compared to operating earnings.
In summary, the analysis shows volatility in operational performance reflected by fluctuating operating profits per share, with periods of loss followed by recovery. The share price largely follows these trends but exhibits stronger gains in 2021, potentially signaling improved market sentiment. The price-to-operating profit ratio suggests periods of elevated investor expectations relative to earnings, particularly in 2019 and 2021. These patterns may warrant further investigation into external factors impacting operations and market perceptions throughout this timeframe.
Price to Sales (P/S)
Marathon Oil Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/S Ratio, Industry | ||||||
| Energy | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price showed moderate growth from 2017 through 2018, increasing from $15.18 to $16.68. However, it experienced a significant decline in 2019 to $10.25, followed by a slight recovery in 2020 to $11.16. A strong rebound occurred in 2021, with the share price nearly doubling to $21.89, indicating a volatile yet upward trend in the latter year.
- Sales per Share
- Sales per share increased considerably between 2017 and 2018, rising from $5.15 to $7.21. The figure then decreased slightly in 2019 to $6.36, followed by a substantial drop in 2020 to $3.92. In 2021, sales per share recovered strongly to $7.66, surpassing previous years and aligning with the sharp increase observed in the share price.
- Price-to-Sales Ratio (P/S)
- The P/S ratio declined from 2.95 in 2017 to 1.61 in 2019, reflecting a combination of decreasing share price and fluctuating sales per share during this period. In 2020, despite lower sales per share, the P/S ratio increased to 2.84, indicating a relatively higher valuation of the stock compared to its sales. The ratio steadied in 2021 at 2.86, showing a consistent valuation trend in line with the recovery of both sales per share and share price.
Price to Book Value (P/BV)
Marathon Oil Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/BV Ratio, Industry | ||||||
| Energy | ||||||
Based on: 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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited moderate fluctuations over the five-year period. It increased from $15.18 at the end of 2017 to $16.68 in 2018, followed by a decline to $10.25 in 2019. In 2020, the share price showed slight recovery to $11.16, and then a substantial rise to $21.89 by the end of 2021. Overall, the share price demonstrated a U-shaped trend with a notable increase in the final year.
- Book Value Per Share (BVPS)
- Book value per share showed a generally stable trend with moderate fluctuations. It increased from $13.78 in 2017 to $15.27 in 2019, indicating growth in net asset value per share. However, in 2020, there was a decline to $13.38, followed by a moderate recovery to $14.62 in 2021. The BVPS remained within a relatively narrow range, reflecting steady book value despite some volatility.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio demonstrated considerable variability in relation to share price and book value trends. It remained slightly above 1.0 in 2017 and 2018 (1.10 and 1.13 respectively), suggesting that the market price was marginally higher than book value. In 2019, the ratio dropped significantly to 0.67, indicating the share price was substantially undervalued relative to book value. It then recovered somewhat to 0.83 in 2020. By 2021, the ratio increased sharply to 1.50, reflecting a share price considerably above book value, which may suggest increased market optimism or anticipated future growth.