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
Mosaic Co., current price multiples
| Mosaic Co. | Linde plc | Sherwin-Williams Co. | Chemicals | Materials | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $52.22 | |||||||
| No. shares of common stock outstanding | 345,267,189 | |||||||
| Growth rate (g) | 2.12% | |||||||
| Earnings per share (EPS) | $4.72 | |||||||
| Next year expected EPS | $4.82 | |||||||
| Operating profit per share | $7.15 | |||||||
| Sales per share | $35.79 | |||||||
| Book value per share (BVPS) | $30.71 | |||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | 11.06 | 33.99 | 30.81 | 55.11 | 40.85 | |||
| Price to next year expected earnings | 10.83 | 31.67 | 20.96 | 51.86 | 36.79 | |||
| Price-earnings-growth (PEG) | 5.22 | 4.65 | 0.66 | 8.79 | 3.70 | |||
| Price to operating profit (P/OP) | 7.30 | 26.28 | 20.76 | 41.58 | 25.67 | |||
| Price to sales (P/S) | 1.46 | 6.90 | 3.36 | 6.18 | 5.55 | |||
| Price to book value (P/BV) | 1.70 | 6.13 | 17.21 | 6.75 | 6.75 | |||
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)
Mosaic Co., 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).
The valuation multiples for the period between 2017 and 2021 exhibit diverging trends between earnings-based ratios and asset-based ratios. While earnings-based multiples generally contracted toward the end of the period, asset and sales-based multiples showed recovery and growth following a dip in 2019.
- Price to Earnings (P/E)
- A consistent downward trend is observed in the P/E ratio, which declined from 23.58 in 2018 to 10.21 by 2021. This contraction suggests a shift in market valuation relative to net income over the observed timeframe.
- Price to Operating Profit (P/OP)
- The P/OP ratio demonstrated significant volatility. After a decrease from 22.71 in 2017 to 11.94 in 2018, the ratio peaked at 27.27 in 2020 before dropping sharply to a period low of 6.74 in 2021.
- Price to Sales (P/S)
- A U-shaped pattern is evident in the P/S ratio. The ratio declined from 1.43 in 2017 to a low of 0.79 in 2019, followed by a recovery to 1.35 by the end of 2021.
- Price to Book Value (P/BV)
- The P/BV ratio followed a trajectory similar to the P/S ratio, hitting a low of 0.76 in 2019. Subsequently, a steady upward trend occurred, with the ratio increasing to 1.18 in 2020 and reaching a five-year peak of 1.57 in 2021.
In summary, the valuation profile shifted by 2021, characterized by lower multiples for earnings and operating profits but higher multiples for book value and sales compared to the 2019 trough.
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)
Mosaic Co., 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 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (loss) attributable to Mosaic (in thousands) | 1,630,600) | 666,100) | (1,067,400) | 470,000) | (107,200) | |
| Earnings per share (EPS)2 | 4.43 | 1.76 | -2.82 | 1.22 | -0.28 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 10.21 | 16.90 | — | 23.58 | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Linde plc | 38.92 | — | — | — | — | |
| Sherwin-Williams Co. | 37.32 | — | — | — | — | |
| P/E Ratio, Sector | ||||||
| Chemicals | 38.39 | — | — | — | — | |
| P/E Ratio, Industry | ||||||
| Materials | 28.21 | — | — | — | — | |
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 earnings (loss) attributable to Mosaic ÷ No. shares of common stock outstanding
= 1,630,600,000 ÷ 368,309,275 = 4.43
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 45.20 ÷ 4.43 = 10.21
5 Click competitor name to see calculations.
The financial data reveals a period of significant volatility in both earnings and equity valuation between 2017 and 2021. A pattern of cyclicality is evident, characterized by alternating periods of negative and positive earnings per share, which directly impacted the applicability of the price-to-earnings ratio.
- Earnings Performance
- Earnings per share experienced substantial fluctuations, with losses recorded in 2017 and 2019. A strong upward trajectory is observed starting in 2020, culminating in a peak of 4.43 US$ in 2021, representing a significant recovery in bottom-line profitability.
- Share Price Movement
- The share price exhibited a notable trough in 2019 at 18.47 US$ before entering a sharp growth phase. By December 31, 2021, the price reached 45.20 US$, indicating a robust increase in market valuation over the final two years of the period.
- Price to Earnings (P/E) Ratio Analysis
- The P/E ratio declined consistently during the years in which earnings were positive. From a high of 23.58 in 2018, the ratio fell to 16.90 in 2020 and further to 10.21 in 2021. This downward trend in the multiple, occurring simultaneously with a rising share price, indicates that earnings growth significantly outpaced the increase in the stock price, resulting in a lower valuation multiple relative to actual profitability.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Price to Operating Profit (P/OP)
Mosaic Co., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Operating earnings (loss) (in thousands) | 2,468,500) | 412,900) | (1,094,900) | 928,300) | 465,700) | |
| Operating profit per share2 | 6.70 | 1.09 | -2.89 | 2.41 | 1.21 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 6.74 | 27.27 | — | 11.94 | 22.71 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Linde plc | 29.87 | — | — | — | — | |
| Sherwin-Williams Co. | 27.19 | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Chemicals | 28.96 | — | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Materials | 17.73 | — | — | — | — | |
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 = Operating earnings (loss) ÷ No. shares of common stock outstanding
= 2,468,500,000 ÷ 368,309,275 = 6.70
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 45.20 ÷ 6.70 = 6.74
5 Click competitor name to see calculations.
The financial period from 2017 to 2021 is characterized by significant volatility in both operating performance and equity valuation. While share prices experienced a general upward trajectory following a dip in 2019, operating profit per share exhibited extreme fluctuations, including a period of operational loss that rendered valuation multiples temporarily inapplicable.
- Share Price Trends
- The share price remained relatively stable between 2017 and 2018 before experiencing a sharp decline to 18.47 US$ in 2019. A strong recovery followed, with the price increasing to 29.70 US$ in 2020 and reaching a peak of 45.20 US$ by December 31, 2021.
- Operating Profit per Share (OPPS) Performance
- Operating profitability showed substantial instability. After an increase in 2018, OPPS fell to a deficit of -2.89 US$ in 2019. A recovery occurred in 2020, culminating in a significant surge to 6.70 US$ in 2021, indicating a substantial expansion in operating results toward the end of the period.
- Price to Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio exhibited erratic movement corresponding to the volatility of operating profits. The ratio decreased from 22.71 in 2017 to 11.94 in 2018. In 2019, the ratio could not be calculated due to negative operating profits. A spike to 27.27 was observed in 2020, reflecting a high market valuation relative to a modest recovery in profits. By 2021, the ratio contracted to its lowest level of 6.74; this suggests that while the share price increased, the growth in operating profit per share was disproportionately higher, leading to a more conservative valuation multiple.
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)
Mosaic Co., 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 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in thousands) | 12,357,400) | 8,681,700) | 8,906,300) | 9,587,300) | 7,409,400) | |
| Sales per share2 | 33.55 | 22.90 | 23.51 | 24.87 | 19.23 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.35 | 1.30 | 0.79 | 1.16 | 1.43 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Linde plc | 4.84 | — | — | — | — | |
| Sherwin-Williams Co. | 3.49 | — | — | — | — | |
| P/S Ratio, Sector | ||||||
| Chemicals | 4.31 | — | — | — | — | |
| P/S Ratio, Industry | ||||||
| Materials | 3.83 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 12,357,400,000 ÷ 368,309,275 = 33.55
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 45.20 ÷ 33.55 = 1.35
5 Click competitor name to see calculations.
The valuation metrics for the period between 2017 and 2021 indicate a V-shaped trajectory in the Price-to-Sales (P/S) ratio, characterized by a significant compression in the middle of the period followed by a recovery to near-baseline levels.
- Share Price Dynamics
- Equity value experienced notable volatility, starting at 27.46 US$ in 2017 and reaching a period low of 18.47 US$ in 2019. A subsequent recovery occurred, with the price ascending to 29.70 US$ in 2020 and peaking at 45.20 US$ by the end of 2021.
- Sales Performance per Share
- Revenue generation per share exhibited an overall upward trend. After an initial increase from 19.23 US$ in 2017 to 24.87 US$ in 2018, sales remained relatively stable through 2020 before experiencing a substantial surge to 33.55 US$ in 2021.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio declined from 1.43 in 2017 to a low of 0.79 in 2019. This compression indicates that the market valuation decreased more rapidly than the underlying revenue per share during that interval. Beginning in 2020, the ratio rebounded to 1.30 and concluded the period at 1.35. This return to previous levels suggests a restoration of the valuation multiple despite the significant expansion in sales per share achieved by 2021.
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)
Mosaic Co., 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 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Total Mosaic stockholders’ equity (in thousands) | 10,604,100) | 9,581,400) | 9,185,500) | 10,397,300) | 9,617,500) | |
| Book value per share (BVPS)2 | 28.79 | 25.27 | 24.25 | 26.97 | 24.97 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.57 | 1.18 | 0.76 | 1.07 | 1.10 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Linde plc | 3.38 | — | — | — | — | |
| Sherwin-Williams Co. | 28.55 | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Chemicals | 4.70 | — | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Materials | 4.66 | — | — | — | — | |
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 = Total Mosaic stockholders’ equity ÷ No. shares of common stock outstanding
= 10,604,100,000 ÷ 368,309,275 = 28.79
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 45.20 ÷ 28.79 = 1.57
5 Click competitor name to see calculations.
Between 2017 and 2021, the company's valuation experienced significant volatility, characterized by a sharp contraction in market sentiment in 2019 followed by a robust recovery and expansion through 2021. While the book value per share remained relatively stable with a gradual upward trajectory, the share price exhibited more pronounced fluctuations, leading to varying premiums and discounts relative to the accounting value.
- Price to Book Value (P/BV) Ratio Trends
- The P/BV ratio fluctuated from 1.10 in 2017 to a low of 0.76 in 2019, before climbing to a period peak of 1.57 in 2021. The decline to 0.76 indicates a period where the equity was valued by the market at a discount to its book value. Conversely, the subsequent rise suggests an increasing market premium, reflecting higher investor confidence or improved expectations of future returns on assets.
- Book Value per Share (BVPS) Performance
- The book value per share showed a general trend of growth, moving from US$ 24.97 in 2017 to US$ 28.79 in 2021. Despite a temporary dip to US$ 24.25 in 2019, the BVPS remained a stable anchor for the stock's valuation, increasing by approximately 15% over the total period analyzed.
- Correlation Between Market Price and Asset Value
- The divergence between the share price and the BVPS became most evident in 2021. While the BVPS grew by approximately 14% between 2020 and 2021, the share price surged by roughly 52% during the same interval. This disproportionate growth in market price relative to book value resulted in the expansion of the P/BV ratio from 1.18 to 1.57, marking the highest valuation multiple in the five-year series.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?