Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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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- Statement of Comprehensive Income
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2006
- Operating Profit Margin since 2006
- Debt to Equity since 2006
- Price to Earnings (P/E) since 2006
- Aggregate Accruals
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Historical Valuation Ratios (Summary)
Mastercard Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The analysis of the financial ratios over the reported periods reveals several notable trends and fluctuations. The data encompasses key valuation multiples including Price to Earnings (P/E), Price to Operating Profit (P/OP), Price to Sales (P/S), and Price to Book Value (P/BV), measured quarterly from March 2019 through March 2023.
- Price to Earnings (P/E) Ratio
- The P/E ratio demonstrated moderate volatility over the period. Initially, it fluctuated around the low 40s through 2019 and early 2020 before peaking sharply at 52.84 in the last quarter of 2020. The peak extended into early 2021, reaching the highest observed point of 58.89. Subsequently, a downward correction occurred, bringing the ratio into the mid-30s range by late 2022 and early 2023. This pattern indicates increased investor optimism and potentially higher earnings expectations around 2020-2021, followed by more conservative valuation levels afterward.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio mirrors the trend of the P/E ratio but presents slightly less volatility. It remained in the low to mid-30s throughout 2019, dipped to a low of 29.47 in early 2020, before ascending steadily to a peak of 47.78 in the first quarter of 2021. Thereafter, it declined, stabilizing in the high 20s by the end of 2022 and early 2023. The trajectory suggests similar underlying shifts in perceived profitability and operating efficiency valuation, with a peak corresponding to post-pandemic recovery or growth expectations.
- Price to Sales (P/S) Ratio
- The P/S ratio showed an upward trend from 17 at the start of 2019 to a peak of 24.95 in Q1 2021, indicating increasing sales valuation multiples. After this apex, the ratio steadily declined to approximately 15.52 by March 2023. This decline may reflect either a tempering of sales growth expectations or a market valuation adjustment relative to revenue generation.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio exhibited a consistent increase from 50.25 in early 2019, peaking at 60.92 in Q1 2021. After experiencing some fluctuations in the mid-40s to mid-50s through late 2022, the ratio surged again sharply to 66.45 by March 2023, representing the highest value in the dataset. This pattern indicates a growing premium on the company’s net asset value, potentially due to market sentiment, tangible asset appreciation, or expectations concerning book value growth.
Overall, the ratios peaked broadly around the transition from 2020 into early 2021, consistent with a cyclical optimism or growth phase. Following this, valuation multiples largely retraced some of the gains but with the P/BV ratio maintaining a stronger recovery toward the most recent quarter. The general trend suggests that market participants adjusted their earnings, operating profit, and sales valuations downward after the peak but sustained confidence in the company's underlying book value going into 2023.
Price to Earnings (P/E)
Mastercard Inc., historical P/E calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income (in millions) | |||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
EPS
= (Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022
+ Net incomeQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Mastercard Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibits notable fluctuations over the observed periods. Starting at $254.24 in March 2019, it generally trended upwards, reaching a peak of $388.95 by March 2021. This increase corresponds with intermittent dips, for instance in September 2021 when the price reduced to $333.03 before recovering. Post-2021, the share price presents more volatility, decreasing to $319.37 in September 2022 and rebounding to approximately $373.67 by March 2023. Overall, the share price reflects growth with periodic corrections.
- Earnings Per Share (EPS)
- The earnings per share demonstrated a consistent upward trend throughout the timeframe. EPS rose from $6.10 in March 2019 to $10.19 by March 2023. Early periods show some slight volatility, particularly a decline from $8.08 in December 2019 to $6.45 in December 2020, likely impacted by broader economic conditions. However, from March 2021 onwards, the EPS steadily increased, indicating improving profitability and operational performance.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuated considerably across the quarters, starting at 41.69 in March 2019. It experienced highs during late 2020, peaking at 52.84 in December 2020, and then reaching an even higher level of 58.89 in March 2021. Following this peak, the ratio declined to a low of 31.38 by September 2022, suggesting the share price became more reasonably valued relative to earnings at that time. By March 2023, the P/E ratio increased slightly to 36.67. These movements indicate varying market sentiment and shifts in investor valuation in relation to earnings growth.
- Summary of Trends
- In sum, share price growth and EPS improvements suggest strengthening financial performance overall. However, the volatility in share price and P/E ratios reveals periods of market uncertainty or revaluation. The rising EPS alongside a moderating P/E ratio in later periods may point to enhanced earnings quality or more stable valuation metrics. The data collectively indicates a company that has grown earnings steadily while navigating fluctuating investor expectations and external conditions.
Price to Operating Profit (P/OP)
Mastercard Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Operating income (in millions) | |||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Operating profit per share
= (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Mastercard Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analysis reveals several important trends in the financial performance and market valuation over the examined period. The share price has experienced significant fluctuations, with a notable increase from early 2019 through the end of 2021, followed by periods of volatility and some price retracement from early 2022 to early 2023.
Operating profit per share (OP) shows a consistent upward trajectory, demonstrating gradual improvement in profitability. Starting at 7.51 USD per share in the first quarter of 2019, the metric steadily increased each quarter, reaching 13.13 USD per share by the first quarter of 2023. This indicates effective operational performance and potentially enhanced earnings capacity over time.
The Price to Operating Profit ratio (P/OP) exhibits notable variation that reflects the changing market sentiment or valuation multiples assigned to the company's profitability. This ratio initially ranged around the low-to-mid 30s but spiked significantly during some quarters, such as the fourth quarter of 2020 where it reached 41.92 and then later peaking near 47.78 in the first quarter of 2021. Following those peaks, the ratio generally declined, settling around the high 20s by early 2023.
These trends highlight a few key insights:
- Share Price Movement
- The share price increased substantially from 2019 to late 2021, possibly reflecting strong overall market conditions or investor confidence in the company’s growth. Subsequent fluctuations and a partial price correction in 2022 suggest adjustments to changing market environments and investor perceptions.
- Growth in Operating Profit per Share
- The steady rise in operating profit per share signals robust operational improvements and expanding profitability. This consistent growth points to efficient management and potentially rising revenue streams or improved cost controls over the period.
- Valuation Multiple Volatility
- The P/OP exhibited volatility, with periods of high valuation multiples coinciding with spikes in share price relative to operating profit. The peaks in 2020 and early 2021 may suggest heightened investor optimism or expectations for future growth, whereas the subsequent decline reflects a market reassessment towards more moderate valuation levels.
Overall, the data illustrates a positive financial performance trend marked by rising profitability and a dynamic market valuation that has adjusted over time to reflect changing investor expectations and market conditions.
Price to Sales (P/S)
Mastercard Inc., historical P/S calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net revenue (in millions) | |||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
Sales per share
= (Net revenueQ1 2023
+ Net revenueQ4 2022
+ Net revenueQ3 2022
+ Net revenueQ2 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Mastercard Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The share price demonstrates notable fluctuations over the observed quarterly periods. From March 2019 to December 2019, the share price increased from 254.24 US$ to 340.95 US$, indicating a strong upward trend. In 2020, the price showed volatility, initially declining to 283.69 US$ in March before recovering to 341 US$ by the year-end. The price peaked near 389 US$ in the first half of 2021, followed by a decline to approximately 319 US$ in late 2022, and then experienced a rebound to around 374 US$ by March 2023.
Sales per share exhibited a consistent upward trajectory throughout the entire period. Beginning at 14.94 US$ in March 2019, this metric rose steadily each quarter, reaching 24.07 US$ by March 2023. This growth suggests improving sales performance on a per-share basis, indicating enhanced revenue generation relative to the share count.
The price-to-sales (P/S) ratio displayed more complex dynamics. Initially, the ratio ranged from 17.02 to 20.3 between early 2019 and the end of that year, reflecting relatively stable valuation multiples. In 2020, the P/S ratio peaked at 22.14, corresponding with some share price volatility despite a slight decline in sales per share. The ratio increased further to a high of 24.95 in early 2021, consistent with elevated share prices relative to sales, before gradually declining to a low near 14.19 in late 2022. The reduction in P/S ratio indicates a shift toward more moderate valuation levels despite the continued rise in sales per share. By March 2023, the P/S ratio stabilized around 15.52, reflecting a balance between the share price and improving sales metrics.
Overall, the data reflects a strong and consistent growth in sales per share, while the share price and P/S ratio show more volatility influenced by broader market conditions and investor sentiment. The declining trend in the P/S ratio in the latter period may suggest a market adjustment to more sustainable valuation levels amid continued operational growth.
- Share Price Trend
- Strong growth through 2019, volatility and a brief decline during 2020, recovery with peaks in 2021, followed by a dip and rebound in 2022–2023.
- Sales per Share Trend
- Consistent quarter-over-quarter growth, increasing from under 15 US$ to over 24 US$, indicating ongoing improvement in revenue per share.
- Price-to-Sales Ratio Trend
- Relatively stable in 2019, peaked in early 2020 and 2021, then gradually declined toward mid-2022, signaling a revaluation toward more moderate levels despite increased sales.
Price to Book Value (P/BV)
Mastercard Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Total Mastercard Incorporated stockholders’ equity (in millions) | |||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||
| CrowdStrike Holdings Inc. | |||||||||||||||||||||||
| Datadog Inc. | |||||||||||||||||||||||
| International Business Machines Corp. | |||||||||||||||||||||||
| Intuit Inc. | |||||||||||||||||||||||
| Microsoft Corp. | |||||||||||||||||||||||
| Oracle Corp. | |||||||||||||||||||||||
| Palantir Technologies Inc. | |||||||||||||||||||||||
| Palo Alto Networks Inc. | |||||||||||||||||||||||
| Salesforce Inc. | |||||||||||||||||||||||
| ServiceNow Inc. | |||||||||||||||||||||||
| Synopsys Inc. | |||||||||||||||||||||||
| Workday Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2023 Calculation
BVPS = Total Mastercard Incorporated stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Mastercard Inc. Quarterly or Annual Report.
4 Q1 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price showed an overall upward trajectory from March 2019 through March 2023, beginning at $254.24 and reaching $373.67 at the end of the observed period. There was notable volatility, with a significant peak at $388.95 in March 2021, followed by a decline to $319.37 in September 2022 before a recovery near $370 by the first quarter of 2023. Periods of increase were often succeeded by corrective declines, indicating short-term fluctuations within the longer-term upward trend.
- Book Value Per Share (BVPS) Movement
- BVPS exhibited moderate fluctuation throughout the quarters, starting at $5.06 in March 2019 and increasing to a peak near $7.48 in December 2021. After this peak, BVPS declined gradually, falling to $5.62 by March 2023. This pattern suggests that while the company's net asset base per share strengthened substantially during 2021, there was a relative erosion or adjustment in book value over the subsequent quarters.
- Price-to-Book Value (P/BV) Ratio Behavior
- The P/BV ratio was consistently high, indicative of market valuation well above the book value per share. Initially at 50.25 in March 2019, the ratio generally fluctuated around a high range with peaks above 60, most notably reaching 66.45 in March 2023. This elevated ratio highlights strong investor confidence and possibly growth expectations beyond the tangible book value, albeit reflecting significant valuation multiple variability across quarters.
- Relationship Between Share Price, BVPS, and P/BV Ratios
- The share price increases often outpaced growth in BVPS, leading to rising P/BV ratios, particularly during periods of bullish market sentiment. In some quarters, the share price appreciation was accompanied by more modest growth or declines in BVPS, amplifying the valuation multiples. The elevated P/BV ratios underscore a market perception of sustained quality and growth prospects beyond the book value arithmetic.
- Summary Insights
- The data reflects an overall growth in market valuation and book value during the early to mid-phase of the timeline, with a peak in tangible book strength near the end of 2021. Post-2021, while the book value saw declines, the market valuation remained relatively strong, as evidenced by consistent P/BV ratio elevation. This suggests that investor sentiment remains positive despite the moderation in underlying book value, possibly reflecting expectations of future earnings power or intangible asset value not captured in book value.