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 Petroleum Corp., current price multiples
| Marathon Petroleum Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | $149.56 | ||||||||
| No. shares of common stock outstanding | 321,388,952 | ||||||||
| Growth rate (g) | 8.12% | ||||||||
| Earnings per share (EPS) | $30.12 | ||||||||
| Next year expected EPS | $32.57 | ||||||||
| Operating profit per share | $45.16 | ||||||||
| Sales per share | $461.68 | ||||||||
| Book value per share (BVPS) | $75.93 | ||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | 4.97 | 34.05 | 20.17 | 24.08 | 18.65 | 18.57 | |||
| Price to next year expected earnings | 4.59 | 32.57 | 17.98 | 22.22 | 16.91 | 16.82 | |||
| Price-earnings-growth (PEG) | 0.61 | 7.47 | 1.66 | 2.88 | 1.81 | 1.79 | |||
| Price to operating profit (P/OP) | 3.31 | 19.69 | 11.90 | 16.43 | 12.52 | 12.57 | |||
| Price to sales (P/S) | 0.32 | 2.27 | 2.73 | 2.14 | 2.17 | 2.17 | |||
| Price to book value (P/BV) | 1.97 | 2.25 | 2.50 | 2.68 | 3.07 | 3.10 | |||
Based on: 10-K (reporting date: 2023-12-31).
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 Petroleum Corp., historical price multiples
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).
The valuation multiples for Marathon Petroleum Corp. between 2019 and 2023 demonstrate a divergent trend between asset-based valuation and earnings-based multiples. While earnings and operating profit multiples experienced significant volatility and an overall decline from 2019 levels, the market premium over book value exhibited consistent and substantial growth throughout the period.
- Price to Earnings (P/E)
- A marked compression in the P/E ratio is observed, falling from 11.68 in 2019 to a low of 3.85 in 2022. Although the ratio recovered to 6.24 by December 31, 2023, it remained significantly lower than the 2019 baseline, suggesting a lower multiple attributed to earnings during the latter part of the period.
- Price to Operating Profit (P/OP)
- The P/OP ratio exhibited high volatility, peaking at 9.79 in 2021 before dropping sharply to 2.60 in 2022. By the end of 2023, the ratio moderated to 4.16, reflecting unstable market valuations relative to the company's operating performance.
- Price to Sales (P/S)
- The P/S ratio fluctuated within a narrow range, increasing from 0.25 in 2019 to a peak of 0.51 in 2020. It subsequently stabilized, ending the period at 0.41 in 2023, indicating a relatively consistent relationship between market capitalization and total revenue.
- Price to Book Value (P/BV)
- A strong and continuous upward trend is evident in the P/BV ratio. Starting at 0.91 in 2019, which indicated the stock was trading below its book value, the ratio climbed steadily each year to reach 2.48 by December 31, 2023. This represents a significant increase in the market's valuation of the company's net assets.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to Earnings (P/E)
Marathon Petroleum Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 361,358,732 | 445,546,907 | 565,212,958 | 651,274,842 | 649,503,967 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to MPC (in millions) | 9,681) | 14,516) | 9,738) | (9,826) | 2,637) | |
| Earnings per share (EPS)2 | 26.79 | 32.58 | 17.23 | -15.09 | 4.06 | |
| Share price1, 3 | 167.16 | 125.52 | 74.46 | 54.62 | 47.42 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 6.24 | 3.85 | 4.32 | — | 11.68 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | 13.42 | 8.71 | 16.81 | — | — | |
| ConocoPhillips | 11.92 | 7.07 | 14.66 | — | — | |
| Exxon Mobil Corp. | 11.49 | 8.01 | 14.11 | — | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 12.17 | 8.08 | 15.11 | — | — | |
| P/E Ratio, Industry | ||||||
| Energy | 12.48 | 8.54 | 15.67 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income (loss) attributable to MPC ÷ No. shares of common stock outstanding
= 9,681,000,000 ÷ 361,358,732 = 26.79
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 167.16 ÷ 26.79 = 6.24
5 Click competitor name to see calculations.
An analysis of valuation multiples reveals a significant divergence between consistent share price appreciation and highly volatile earnings performance from 2019 to 2023.
- Share Price Appreciation
- The share price exhibited a steady and strong upward trajectory, increasing from 47.42 USD in 2019 to 167.16 USD by the end of 2023. This represents a sustained increase in market valuation over the five-year period.
- Earnings Volatility
- Earnings per share (EPS) experienced extreme fluctuations, dropping from 4.06 USD in 2019 to a deficit of -15.09 USD in 2020. A sharp recovery followed, with EPS peaking at 32.58 USD in 2022 before declining slightly to 26.79 USD in 2023.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio reflects a period of significant compression following the 2019 high of 11.68. After an undefined period in 2020 due to negative earnings, the ratio fell to 4.32 in 2021 and reached a low of 3.85 in 2022, suggesting that earnings growth outpaced share price growth during the post-pandemic recovery. In 2023, the ratio rose to 6.24, driven by continued share price gains occurring simultaneously with a moderate contraction in earnings.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to Operating Profit (P/OP)
Marathon Petroleum Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 361,358,732 | 445,546,907 | 565,212,958 | 651,274,842 | 649,503,967 | |
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in millions) | 14,514) | 21,469) | 4,300) | (12,247) | 5,576) | |
| Operating profit per share2 | 40.17 | 48.19 | 7.61 | -18.80 | 8.59 | |
| Share price1, 3 | 167.16 | 125.52 | 74.46 | 54.62 | 47.42 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 4.16 | 2.60 | 9.79 | — | 5.52 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 9.48 | 6.12 | 11.40 | — | — | |
| ConocoPhillips | 7.61 | 4.57 | 8.66 | — | — | |
| Exxon Mobil Corp. | 7.62 | 5.65 | 9.86 | — | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 8.17 | 5.60 | 10.13 | — | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 8.44 | 5.95 | 10.52 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= 14,514,000,000 ÷ 361,358,732 = 40.17
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 167.16 ÷ 40.17 = 4.16
5 Click competitor name to see calculations.
An analysis of the valuation metrics reveals a period of substantial share price appreciation coupled with significant volatility in operational profitability between 2019 and 2023.
- Share Price Trajectory
- A consistent and strong upward trend is observed in the share price, which increased from 47.42 US$ in 2019 to 167.16 US$ by the end of 2023. This represents a steady growth in market valuation over the five-year period.
- Operating Profitability Trends
- Operating profit per share exhibited extreme fluctuations. After beginning at 8.59 US$ in 2019, profitability collapsed in 2020 to a deficit of 18.80 US$ per share. A recovery phase began in 2021, leading to a peak of 48.19 US$ per share in 2022, followed by a slight contraction to 40.17 US$ in 2023.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio demonstrates the evolving relationship between market pricing and operational earnings. The ratio was non-calculable in 2020 due to negative operating profits. In 2021, the ratio reached a peak of 9.79, indicating that the share price grew faster than the initial recovery of operating profits. A significant compression occurred in 2022, with the ratio dropping to 2.60 as operating profit per share surged, drastically outpacing the share price increase. By 2023, the ratio moderate to 4.16, reflecting a combination of continued share price growth and a slight decrease in operating profitability.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to Sales (P/S)
Marathon Petroleum Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 361,358,732 | 445,546,907 | 565,212,958 | 651,274,842 | 649,503,967 | |
| Selected Financial Data (US$) | ||||||
| Sales and other operating revenues (in millions) | 148,379) | 177,453) | 119,983) | 69,779) | 123,949) | |
| Sales per share2 | 410.61 | 398.28 | 212.28 | 107.14 | 190.84 | |
| Share price1, 3 | 167.16 | 125.52 | 74.46 | 54.62 | 47.42 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.41 | 0.32 | 0.35 | 0.51 | 0.25 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.46 | 1.31 | 1.69 | — | — | |
| ConocoPhillips | 2.33 | 1.68 | 2.58 | — | — | |
| Exxon Mobil Corp. | 1.24 | 1.12 | 1.17 | — | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.41 | 1.24 | 1.48 | — | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.46 | 1.31 | 1.52 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Sales and other operating revenues ÷ No. shares of common stock outstanding
= 148,379,000,000 ÷ 361,358,732 = 410.61
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 167.16 ÷ 410.61 = 0.41
5 Click competitor name to see calculations.
The financial trajectory from 2019 to 2023 is characterized by a consistent appreciation in share price and significant volatility in sales per share, which collectively influenced the Price-to-Sales (P/S) ratio.
- Share Price Appreciation
- A continuous upward trend in share price is observed, rising from 47.42 USD in 2019 to 167.16 USD by the end of 2023. This represents a substantial increase in market valuation over the five-year period.
- Sales per Share Performance
- Sales per share exhibited a sharp decline in 2020, falling to 107.14 USD from 190.84 USD in the previous year. This was followed by a robust recovery and expansion, with values climbing to 410.61 USD by 2023, indicating a significant increase in revenue generation per share following the 2020 contraction.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio fluctuated within a range of 0.25 to 0.51. A peak occurred in 2020 at 0.51, driven by the contraction in sales per share while the share price remained resilient. Between 2021 and 2022, the ratio compressed to a low of 0.32 as revenue growth began to outpace the rise in share price. By 2023, the ratio increased to 0.41, reflecting a moderate expansion in the market's valuation of each dollar of sales.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to Book Value (P/BV)
Marathon Petroleum Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 361,358,732 | 445,546,907 | 565,212,958 | 651,274,842 | 649,503,967 | |
| Selected Financial Data (US$) | ||||||
| Total MPC stockholders’ equity (in millions) | 24,404) | 27,715) | 26,206) | 22,199) | 33,694) | |
| Book value per share (BVPS)2 | 67.53 | 62.20 | 46.36 | 34.09 | 51.88 | |
| Share price1, 3 | 167.16 | 125.52 | 74.46 | 54.62 | 47.42 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 2.48 | 2.02 | 1.61 | 1.60 | 0.91 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.78 | 1.94 | 1.89 | — | — | |
| ConocoPhillips | 2.65 | 2.75 | 2.61 | — | — | |
| Exxon Mobil Corp. | 2.02 | 2.29 | 1.93 | — | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.00 | 2.21 | 2.00 | — | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 2.08 | 2.30 | 2.07 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Total MPC stockholders’ equity ÷ No. shares of common stock outstanding
= 24,404,000,000 ÷ 361,358,732 = 67.53
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 167.16 ÷ 67.53 = 2.48
5 Click competitor name to see calculations.
A consistent upward trajectory is observed in the valuation multiples from 2019 to 2023, characterized by a transition from a discount to book value to a significant market premium. The Price to Book Value (P/BV) ratio rose steadily from 0.91 in 2019 to 2.48 by the end of 2023, indicating increasing investor confidence and a higher market valuation of the company's net assets over time.
- Price to Book Value (P/BV) Expansion
- The P/BV ratio experienced its most significant relative increase between 2019 and 2020, jumping from 0.91 to 1.60. This shift marks a transition from the stock trading below its accounting value to trading at a premium. The ratio continued to expand through 2023, reaching 2.48, which suggests that the market is attributing higher value to the company's intangible assets, future earning potential, or operational efficiency relative to its tangible equity.
- Share Price Appreciation
- The market price per share demonstrated uninterrupted growth throughout the five-year period. Starting at 47.42 USD in 2019, the price increased to 167.16 USD by 2023. The acceleration of this growth is particularly evident between 2021 and 2023, where the share price more than doubled, serving as the primary driver for the expanding P/BV multiple.
- Book Value per Share (BVPS) Volatility and Recovery
- The book value per share exhibited a non-linear trend, characterized by a sharp decline in 2020 to 34.09 USD from 51.88 USD in 2019. However, a strong recovery followed, with BVPS climbing steadily to 67.53 USD by 2023. While the book value grew significantly from its 2020 low, the rate of share price appreciation substantially outpaced the growth of the book value, resulting in the observed rise in the P/BV ratio.
The divergence between the growth rates of the share price and the book value per share indicates that the market valuation is no longer anchored strictly to the balance sheet. The expansion of the P/BV ratio suggests a shift in investor perception, where the company is valued more on its capacity to generate returns than on the liquidation value of its assets.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?