Price to Earnings (P/E)
since 2011
Calculation
Marathon Petroleum Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to MPC1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2024 | 6.24 | = | 167.16 | ÷ | 26.79 | 26.79 | = | 9,681 | ÷ | 361,358,732 | |
| Feb 23, 2023 | 3.85 | = | 125.52 | ÷ | 32.58 | 32.58 | = | 14,516 | ÷ | 445,546,907 | |
| Feb 24, 2022 | 4.32 | = | 74.46 | ÷ | 17.23 | 17.23 | = | 9,738 | ÷ | 565,212,958 | |
| Feb 26, 2021 | — | = | 54.62 | ÷ | -15.09 | -15.09 | = | -9,826 | ÷ | 651,274,842 | |
| Feb 28, 2020 | 11.68 | = | 47.42 | ÷ | 4.06 | 4.06 | = | 2,637 | ÷ | 649,503,967 | |
| Feb 28, 2019 | 15.03 | = | 62.01 | ÷ | 4.13 | 4.13 | = | 2,780 | ÷ | 673,619,190 | |
| Feb 28, 2018 | 8.89 | = | 64.06 | ÷ | 7.21 | 7.21 | = | 3,432 | ÷ | 476,059,729 | |
| Feb 24, 2017 | 22.49 | = | 50.03 | ÷ | 2.22 | 2.22 | = | 1,174 | ÷ | 527,782,929 | |
| Feb 26, 2016 | 6.35 | = | 34.22 | ÷ | 5.39 | 5.39 | = | 2,852 | ÷ | 529,227,453 | |
| Feb 27, 2015 | 11.36 | = | 52.50 | ÷ | 4.62 | 4.62 | = | 2,524 | ÷ | 546,125,760 | |
| Feb 28, 2014 | 11.72 | = | 42.00 | ÷ | 3.58 | 3.58 | = | 2,112 | ÷ | 589,128,462 | |
| Feb 28, 2013 | 8.11 | = | 41.44 | ÷ | 5.11 | 5.11 | = | 3,389 | ÷ | 662,867,852 | |
| Feb 29, 2012 | 6.05 | = | 20.78 | ÷ | 3.44 | 3.44 | = | 2,389 | ÷ | 695,228,266 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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), 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 Marathon Petroleum Corp. Annual Report.
An analysis of the financial metrics from February 2012 to February 2024 reveals a general upward trajectory in share price coupled with significant volatility in earnings per share, leading to fluctuating price-to-earnings (P/E) ratios.
- Share Price Dynamics
- A long-term growth trend is observed in the share price, which rose from 20.78 US$ in 2012 to 167.16 US$ by 2024. The most aggressive acceleration occurred between 2021 and 2024, where the price increased from 54.62 US$ to 167.16 US$, representing a substantial expansion in market valuation over a three-year period.
- Earnings per Share (EPS) Volatility
- Earnings exhibit considerable instability. While EPS remained relatively stable between 2012 and 2016, a sharp decline occurred in 2017 (2.22 US$), followed by a recovery. A critical inflection point is noted in 2021, where EPS fell to -15.09 US$, resulting in a non-calculable P/E ratio. Subsequently, a period of exceptional profitability emerged between 2022 and 2024, with EPS peaking at 32.58 US$ in 2023.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio demonstrates erratic behavior, peaking at 22.49 in 2017 during a period of diminished earnings. Conversely, from 2022 to 2024, a pattern of P/E compression is evident. Despite the record-high share prices, the P/E ratios remained low, ranging between 3.85 and 6.24. This suggests that the surge in share price was heavily supported by the massive increase in actual earnings rather than speculative expansion.
The relationship between the share price and earnings indicates that while the market valuation has increased significantly over the twelve-year period, the current valuation multiples are lower than historical peaks, reflecting a transition toward earnings-driven growth in the most recent fiscal years.
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Comparison to Competitors
Marathon Petroleum Corp., P/E, long-term trends, comparison to competitors
| Marathon Petroleum Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Feb 28, 2024 | 6.24 | 13.42 | 11.92 | 11.49 |
| Feb 23, 2023 | 3.85 | 8.71 | 7.07 | 8.01 |
| Feb 24, 2022 | 4.32 | 16.81 | 14.66 | 14.11 |
| Feb 26, 2021 | — | — | — | — |
| Feb 28, 2020 | 11.68 | 70.06 | 8.77 | 15.64 |
| Feb 28, 2019 | 15.03 | 15.30 | 12.60 | 16.15 |
| Feb 28, 2018 | 8.89 | 22.83 | — | 16.28 |
| Feb 24, 2017 | 22.49 | — | — | 42.80 |
| Feb 26, 2016 | 6.35 | 35.02 | — | 20.96 |
| Feb 27, 2015 | 11.36 | 10.61 | 12.03 | 11.56 |
| Feb 28, 2014 | 11.72 | 10.04 | 8.91 | 12.71 |
| Feb 28, 2013 | 8.11 | 8.61 | 8.49 | 8.94 |
| Feb 29, 2012 | 6.05 | 7.96 | 7.60 | 10.03 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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), 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 (Oil, Gas & Consumable Fuels)
Marathon Petroleum Corp., P/E, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Marathon Petroleum Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Feb 28, 2024 | 6.24 | 12.17 |
| Feb 23, 2023 | 3.85 | 8.08 |
| Feb 24, 2022 | 4.32 | 15.11 |
| Feb 26, 2021 | — | — |
| Feb 28, 2020 | 11.68 | 20.13 |
| Feb 28, 2019 | 15.03 | 15.32 |
| Feb 28, 2018 | 8.89 | 21.22 |
| Feb 24, 2017 | 22.49 | 162.35 |
| Feb 26, 2016 | 6.35 | 33.10 |
| Feb 27, 2015 | 11.36 | 11.30 |
| Feb 28, 2014 | 11.72 | 11.25 |
| Feb 28, 2013 | 8.11 | 8.78 |
| Feb 29, 2012 | 6.05 | 8.96 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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), 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 (Energy)
Marathon Petroleum Corp., P/E, long-term trends, comparison to industry (energy)
| Marathon Petroleum Corp. | Energy | |
|---|---|---|
| Feb 28, 2024 | 6.24 | 12.48 |
| Feb 23, 2023 | 3.85 | 8.54 |
| Feb 24, 2022 | 4.32 | 15.67 |
| Feb 26, 2021 | — | — |
| Feb 28, 2020 | 11.68 | 37.93 |
| Feb 28, 2019 | 15.03 | 15.94 |
| Feb 28, 2018 | 8.89 | 26.50 |
| Feb 24, 2017 | 22.49 | 354.83 |
| Feb 26, 2016 | 6.35 | 33.85 |
| Feb 27, 2015 | 11.36 | 11.97 |
| Feb 28, 2014 | 11.72 | 11.81 |
| Feb 28, 2013 | 8.11 | 9.43 |
| Feb 29, 2012 | 6.05 | 9.63 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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), 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).