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
Marathon Oil Corp., current price multiples
| Marathon Oil Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | $21.47 | ||||||||
| No. shares of common stock outstanding | 677,583,502 | ||||||||
| Growth rate (g) | -8.81% | ||||||||
| Earnings per share (EPS) | $1.40 | ||||||||
| Next year expected EPS | $1.27 | ||||||||
| Operating profit per share | $1.93 | ||||||||
| Sales per share | $8.27 | ||||||||
| Book value per share (BVPS) | $15.77 | ||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | 15.38 | 32.84 | 19.15 | 22.89 | 26.04 | 26.61 | |||
| Price to next year expected earnings | 16.86 | 31.41 | 17.07 | 21.13 | 24.71 | 25.22 | |||
| Price to operating profit (P/OP) | 11.12 | 18.99 | 11.29 | 15.62 | 17.47 | 17.86 | |||
| Price to sales (P/S) | 2.60 | 2.19 | 2.59 | 2.04 | 2.55 | 2.58 | |||
| Price to book value (P/BV) | 1.36 | 2.17 | 2.37 | 2.55 | 3.45 | 3.51 | |||
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
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).
An analysis of valuation multiples from 2017 to 2021 reveals a period of significant volatility, characterized by a valuation trough in 2019 and a subsequent recovery by the end of 2021.
- Earnings and Profitability Multiples
- The Price to Earnings (P/E) and Price to Operating Profit (P/OP) ratios followed closely aligned paths. From 2018 to 2019, the P/E ratio increased from 12.46 to 16.99, while the P/OP ratio rose from 8.19 to 12.83. A lack of available data for both metrics in 2020 suggests the absence of positive earnings and operating profits for that period. By 2021, these ratios returned to positive territory, with P/E stabilizing at 16.91 and P/OP settling at 12.23.
- Sales and Book Value Multiples
- The Price to Sales (P/S) ratio showed a consistent decline from 2.95 in 2017 to a minimum of 1.61 in 2019, followed by a sharp recovery to 2.84 in 2020 and 2.86 in 2021. The Price to Book Value (P/BV) ratio exhibited a similar trend; after remaining steady between 1.10 and 1.13 in 2017 and 2018, it fell to 0.67 in 2019. A strong upward trajectory followed, with the ratio increasing to 0.83 in 2020 and peaking at 1.50 by December 31, 2021.
The data indicates that 2019 represented a low point for market valuation relative to both sales and book value. The subsequent increase in all available multiples by 2021 demonstrates a comprehensive recovery in market sentiment and a higher valuation premium attributed to the company's assets and revenue streams.
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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 | 730,765,163 | 789,075,988 | 795,849,999 | 818,504,459 | 849,755,866 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) (in millions) | 946) | (1,451) | 480) | 1,096) | (5,723) | |
| Earnings per share (EPS)2 | 1.29 | -1.84 | 0.60 | 1.34 | -6.73 | |
| Share price1, 3 | 21.89 | 11.16 | 10.25 | 16.68 | 15.18 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 16.91 | — | 16.99 | 12.46 | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | 16.81 | — | — | — | — | |
| ConocoPhillips | 14.66 | — | — | — | — | |
| Exxon Mobil Corp. | 14.11 | — | — | — | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 15.11 | — | — | — | — | |
| P/E Ratio, Industry | ||||||
| Energy | 15.67 | — | — | — | — | |
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
= 946,000,000 ÷ 730,765,163 = 1.29
3 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 21.89 ÷ 1.29 = 16.91
5 Click competitor name to see calculations.
The financial performance and market valuation exhibit significant volatility between 2017 and 2021, characterized by alternating periods of profitability and loss.
- Share Price Trends
- The share price experienced notable fluctuations, starting at 15.18 USD in 2017 and reaching a peak of 21.89 USD by the end of 2021. A significant decline occurred in 2019, where the price dropped to 10.25 USD, followed by a sustained recovery over the subsequent two years.
- Earnings Per Share (EPS) Volatility
- Earnings demonstrated an inconsistent trajectory. A substantial loss of 6.73 USD per share in 2017 was followed by a return to profitability in 2018 (1.34 USD) and 2019 (0.60 USD). This positive trend was interrupted in 2020 by a loss of 1.84 USD per share, before recovering to 1.29 USD in 2021.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio remained undefined during 2017 and 2020 due to negative earnings per share. In years of profitability, the ratio increased from 12.46 in 2018 to 16.99 in 2019. By 2021, the ratio settled at 16.91, suggesting a stabilization of the market valuation multiple relative to earnings during positive performance cycles.
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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 | 730,765,163 | 789,075,988 | 795,849,999 | 818,504,459 | 849,755,866 | |
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in millions) | 1,308) | (1,180) | 636) | 1,667) | (133) | |
| Operating profit per share2 | 1.79 | -1.50 | 0.80 | 2.04 | -0.16 | |
| Share price1, 3 | 21.89 | 11.16 | 10.25 | 16.68 | 15.18 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 12.23 | — | 12.83 | 8.19 | — | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 11.40 | — | — | — | — | |
| ConocoPhillips | 8.66 | — | — | — | — | |
| Exxon Mobil Corp. | 9.86 | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 10.13 | — | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 10.52 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= 1,308,000,000 ÷ 730,765,163 = 1.79
3 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 21.89 ÷ 1.79 = 12.23
5 Click competitor name to see calculations.
The financial data from 2017 to 2021 reveals significant volatility in both market valuation and operational profitability. The share price experienced a notable decline between 2018 and 2019, followed by a substantial recovery that culminated in a five-year peak by the end of 2021.
- Share Price Trends
- The share price fluctuated from US$ 15.18 in 2017 to a high of US$ 21.89 in 2021. A significant contraction occurred in 2019, where the price dropped to US$ 10.25, representing the lowest valuation in the analyzed period before a strong upward trajectory began in 2020.
- Operating Profit per Share
- Operating profitability exhibited extreme variance, characterized by alternating periods of profit and loss. Negative values were recorded in 2017 (US$ -0.16) and 2020 (US$ -1.50). The highest operating profit per share was achieved in 2018 at US$ 2.04, followed by a decline to US$ 0.80 in 2019 and a recovery to US$ 1.79 by 2021.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio remained undefined during years of operating losses, specifically 2017 and 2020. In profitable years, the ratio showed an upward trend from 8.19 in 2018 to 12.83 in 2019. By 2021, the ratio slightly moderated to 12.23, suggesting that the increase in share price was largely supported by the recovery in operating profits.
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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 | 730,765,163 | 789,075,988 | 795,849,999 | 818,504,459 | 849,755,866 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | 5,601) | 3,097) | 5,063) | 5,902) | 4,373) | |
| Sales per share2 | 7.66 | 3.92 | 6.36 | 7.21 | 5.15 | |
| Share price1, 3 | 21.89 | 11.16 | 10.25 | 16.68 | 15.18 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 2.86 | 2.84 | 1.61 | 2.31 | 2.95 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.69 | — | — | — | — | |
| ConocoPhillips | 2.58 | — | — | — | — | |
| Exxon Mobil Corp. | 1.17 | — | — | — | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.48 | — | — | — | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.52 | — | — | — | — | |
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
= 5,601,000,000 ÷ 730,765,163 = 7.66
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
= 21.89 ÷ 7.66 = 2.86
5 Click competitor name to see calculations.
The valuation of the common stock, as measured by the Price-to-Sales (P/S) ratio, exhibited a cyclical trend between 2017 and 2021. After a period of contraction, the ratio experienced a sharp recovery, returning to levels consistent with those observed at the start of the analyzed period.
- Price-to-Sales Ratio Analysis
- A downward trend in the P/S ratio is observed from 2017 to 2019, falling from 2.95 to a low of 1.61. This contraction reversed abruptly in 2020, with the ratio climbing to 2.84, and further stabilizing at 2.86 by the end of 2021.
- Share Price Volatility
- The share price showed significant fluctuations, decreasing from 15.18 in 2017 to 10.25 in 2019. A strong bullish reversal followed, culminating in a period high of 21.89 in 2021.
- Sales per Share Performance
- Sales per share demonstrated instability, peaking at 7.21 in 2018 before dropping to a low of 3.92 in 2020. A substantial rebound occurred in 2021, with sales per share reaching 7.66, the highest value in the recorded period.
- Valuation Divergence
- A notable divergence is observed in 2020, where the P/S ratio expanded significantly to 2.84 despite sales per share reaching their lowest point of 3.92. This suggests that the market valuation increased based on factors other than immediate revenue generation during that fiscal year.
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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 | 730,765,163 | 789,075,988 | 795,849,999 | 818,504,459 | 849,755,866 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 10,686) | 10,561) | 12,153) | 12,128) | 11,708) | |
| Book value per share (BVPS)2 | 14.62 | 13.38 | 15.27 | 14.82 | 13.78 | |
| Share price1, 3 | 21.89 | 11.16 | 10.25 | 16.68 | 15.18 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.50 | 0.83 | 0.67 | 1.13 | 1.10 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.89 | — | — | — | — | |
| ConocoPhillips | 2.61 | — | — | — | — | |
| Exxon Mobil Corp. | 1.93 | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.00 | — | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 2.07 | — | — | — | — | |
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
= 10,686,000,000 ÷ 730,765,163 = 14.62
3 Closing price as at the filing date of Marathon Oil Corp. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 21.89 ÷ 14.62 = 1.50
5 Click competitor name to see calculations.
An analysis of the valuation metrics between 2017 and 2021 reveals a period of significant volatility in market sentiment relative to the underlying book value of the entity. While the book value per share remained relatively stable throughout the period, the price-to-book value ratio experienced a notable contraction before reaching a five-year peak in 2021.
- Share Price Performance
- The share price exhibited a non-linear trajectory, increasing from US$ 15.18 in 2017 to US$ 16.68 in 2018, followed by a sharp decline to US$ 10.25 in 2019. A recovery phase followed, with the price rising to US$ 11.16 in 2020 and surging to US$ 21.89 by the end of 2021.
- Book Value per Share (BVPS) Trends
- The BVPS demonstrated a gradual upward trend from US$ 13.78 in 2017 to a peak of US$ 15.27 in 2019. A contraction to US$ 13.38 was observed in 2020, with a subsequent recovery to US$ 14.62 in 2021. This indicates that the net asset value per share remained more consistent than the market valuation.
- Price to Book Value (P/BV) Ratio Analysis
- The P/BV ratio moved from 1.10 in 2017 to a low of 0.67 in 2019. The dip below the 1.0 threshold in 2019 and 2020 indicates a period where the market valued the company at a discount to its accounting book value. By the end of 2021, the ratio expanded to 1.50, representing a significant premium over the book value and the highest valuation multiple within the analyzed timeframe.
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