Price to Earnings (P/E)
since 2005
Calculation
Monsanto Co., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income attributable to Monsanto Company1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 27, 2017 | 23.67 | = | 121.52 | ÷ | 5.13 | 5.13 | = | 2,260 | ÷ | 440,199,969 | |
| Oct 19, 2016 | 33.60 | = | 102.49 | ÷ | 3.05 | 3.05 | = | 1,336 | ÷ | 437,982,595 | |
| Oct 29, 2015 | 17.82 | = | 93.73 | ÷ | 5.26 | 5.26 | = | 2,314 | ÷ | 439,837,164 | |
| Oct 29, 2014 | 19.82 | = | 112.18 | ÷ | 5.66 | 5.66 | = | 2,740 | ÷ | 484,073,332 | |
| Oct 23, 2013 | 22.80 | = | 107.62 | ÷ | 4.72 | 4.72 | = | 2,482 | ÷ | 525,837,818 | |
| Oct 19, 2012 | 23.19 | = | 88.69 | ÷ | 3.83 | 3.83 | = | 2,045 | ÷ | 534,598,091 | |
| Nov 14, 2011 | 24.78 | = | 74.39 | ÷ | 3.00 | 3.00 | = | 1,607 | ÷ | 535,409,098 | |
| Oct 27, 2010 | 29.14 | = | 60.25 | ÷ | 2.07 | 2.07 | = | 1,109 | ÷ | 536,392,459 | |
| Oct 27, 2009 | 18.42 | = | 71.27 | ÷ | 3.87 | 3.87 | = | 2,109 | ÷ | 545,055,022 | |
| Oct 24, 2008 | 19.48 | = | 71.95 | ÷ | 3.69 | 3.69 | = | 2,024 | ÷ | 547,941,657 | |
| Oct 26, 2007 | 51.87 | = | 94.28 | ÷ | 1.82 | 1.82 | = | 993 | ÷ | 546,319,136 | |
| Nov 2, 2006 | 34.83 | = | 44.17 | ÷ | 1.27 | 1.27 | = | 689 | ÷ | 543,300,591 | |
| Nov 8, 2005 | 66.46 | = | 31.56 | ÷ | 0.47 | 0.47 | = | 255 | ÷ | 536,968,150 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Monsanto Co. Annual Report.
An analysis of the financial metrics between 2005 and 2017 reveals a significant expansion in both share price and earnings per share, accompanied by a general normalization of the Price to Earnings (P/E) ratio after an initial period of high volatility.
- Share Price and Earnings Growth
- The share price exhibited a long-term upward trajectory, increasing from 31.56 US$ in 2005 to 121.52 US$ by 2017. This growth was supported by a substantial increase in Earnings per Share (EPS), which rose from 0.47 US$ in 2005 to a peak of 5.66 US$ in 2014. While a notable contraction in EPS occurred in 2016, falling to 3.05 US$, the figure recovered to 5.13 US$ in the final reporting period.
- P/E Ratio Volatility and Compression
- The P/E ratio began at a high of 66.46 in 2005, indicating a period of premium valuation or low initial earnings. A significant compression occurred between 2005 and 2008, with the ratio dropping to 19.48. From 2008 through 2015, the P/E ratio remained relatively stable, fluctuating within a tighter range between 17.82 and 24.78, suggesting a more mature valuation alignment with earnings.
- Correlation Between EPS and Valuation
- A distinct divergence is observed in 2016, where the P/E ratio spiked to 33.60. This increase was not driven by an increase in share price—which rose modestly from 93.73 US$ to 102.49 US$—but rather by a sharp decline in EPS from 5.26 US$ to 3.05 US$. By 2017, the ratio returned to 23.67 as EPS recovered, returning the valuation to the historical average established after 2008.
Overall, the data demonstrates a transition from a high-multiple valuation environment to a more stable earnings-driven valuation, despite intermittent volatility in annual earnings.
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Comparison to Competitors
Monsanto Co., P/E, long-term trends, comparison to competitors
| Monsanto Co. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Oct 27, 2017 | 23.67 | 29.95 | 22.90 |
| Oct 19, 2016 | 33.60 | 34.99 | 25.43 |
| Oct 29, 2015 | 17.82 | 37.99 | 29.79 |
| Oct 29, 2014 | 19.82 | 26.62 | 25.06 |
| Oct 23, 2013 | 22.80 | 34.54 | 22.64 |
| Oct 19, 2012 | 23.19 | 59.24 | 19.06 |
| Nov 14, 2011 | 24.78 | 44.68 | 20.42 |
| Oct 27, 2010 | 29.14 | 47.67 | 17.69 |
| Oct 27, 2009 | 18.42 | 14.94 | 17.13 |
| Oct 24, 2008 | 19.48 | 72.71 | 14.90 |
| Oct 26, 2007 | 51.87 | — | 18.66 |
| Nov 2, 2006 | 34.83 | — | 14.66 |
| Nov 8, 2005 | 66.46 | — | 18.11 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Durables & Apparel)
Monsanto Co., P/E, long-term trends, comparison to sector (consumer durables & apparel)
| Monsanto Co. | Consumer Durables & Apparel | |
|---|---|---|
| Oct 27, 2017 | 23.67 | 23.37 |
| Oct 19, 2016 | 33.60 | 26.06 |
| Oct 29, 2015 | 17.82 | 30.35 |
| Oct 29, 2014 | 19.82 | 25.21 |
| Oct 23, 2013 | 22.80 | 23.81 |
| Oct 19, 2012 | 23.19 | 22.14 |
| Nov 14, 2011 | 24.78 | 21.73 |
| Oct 27, 2010 | 29.14 | 18.58 |
| Oct 27, 2009 | 18.42 | 17.07 |
| Oct 24, 2008 | 19.48 | 15.84 |
| Oct 26, 2007 | 51.87 | 18.66 |
| Nov 2, 2006 | 34.83 | 14.66 |
| Nov 8, 2005 | 66.46 | 18.11 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Discretionary)
Monsanto Co., P/E, long-term trends, comparison to industry (consumer discretionary)
| Monsanto Co. | Consumer Discretionary | |
|---|---|---|
| Oct 27, 2017 | 23.67 | 47.03 |
| Oct 19, 2016 | 33.60 | 29.19 |
| Oct 29, 2015 | 17.82 | 24.70 |
| Oct 29, 2014 | 19.82 | 29.48 |
| Oct 23, 2013 | 22.80 | 26.50 |
| Oct 19, 2012 | 23.19 | 20.90 |
| Nov 14, 2011 | 24.78 | 11.38 |
| Oct 27, 2010 | 29.14 | 17.54 |
| Oct 27, 2009 | 18.42 | 18.66 |
| Oct 24, 2008 | 19.48 | 303.41 |
| Oct 26, 2007 | 51.87 | 24.33 |
| Nov 2, 2006 | 34.83 | 117.34 |
| Nov 8, 2005 | 66.46 | 17.54 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).