Price to Operating Profit (P/OP)
since 2005
Calculation
National Oilwell Varco Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating profit (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 19, 2016 | — | = | 29.30 | ÷ | -1.04 | -1.04 | = | -390 | ÷ | 375,800,956 | |
| Feb 17, 2015 | 6.26 | = | 55.13 | ÷ | 8.81 | 8.81 | = | 3,613 | ÷ | 409,935,076 | |
| Feb 14, 2014 | 9.57 | = | 76.42 | ÷ | 7.99 | 7.99 | = | 3,423 | ÷ | 428,526,178 | |
| Feb 22, 2013 | 8.17 | = | 68.10 | ÷ | 8.34 | 8.34 | = | 3,557 | ÷ | 426,639,780 | |
| Feb 23, 2012 | 12.46 | = | 86.23 | ÷ | 6.92 | 6.92 | = | 2,937 | ÷ | 424,224,491 | |
| Feb 23, 2011 | 13.66 | = | 79.39 | ÷ | 5.81 | 5.81 | = | 2,447 | ÷ | 421,070,856 | |
| Feb 26, 2010 | 7.86 | = | 43.47 | ÷ | 5.53 | 5.53 | = | 2,315 | ÷ | 418,452,756 | |
| Mar 2, 2009 | 3.43 | = | 23.97 | ÷ | 6.99 | 6.99 | = | 2,918 | ÷ | 417,375,125 | |
| Feb 29, 2008 | 10.88 | = | 62.30 | ÷ | 5.73 | 5.73 | = | 2,044 | ÷ | 356,988,724 | |
| Feb 27, 2007 | 10.73 | = | 33.91 | ÷ | 3.16 | 3.16 | = | 1,111 | ÷ | 351,607,276 | |
| Mar 6, 2006 | 21.93 | = | 29.92 | ÷ | 1.36 | 1.36 | = | 477 | ÷ | 349,441,532 |
Based on: 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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of National Oilwell Varco Inc. Annual Report.
The Price to Operating Profit (P/OP) ratio demonstrates significant fluctuations in valuation relative to operational earnings over the observed period. A general trend of volatility is evident, reflecting both cyclical shifts in operational performance and corresponding market reactions.
- Share Price Trends
- Share prices experienced a period of rapid appreciation from 2006 to 2008, peaking at 62.30 US$, followed by a sharp correction to 23.97 US$ in 2009. A subsequent recovery phase led to a peak of 86.23 US$ in 2012, before a sustained decline returned the price to 29.30 US$ by 2016.
- Operating Profit Per Share Performance
- Operating profit per share exhibited steady growth from 1.36 US$ in 2006 to 6.99 US$ in 2009. This upward trend generally persisted through 2015, reaching a maximum of 8.81 US$. However, a severe operational reversal occurred in 2016, where profit transitioned to a loss of -1.04 US$ per share.
- P/OP Ratio Dynamics
- The P/OP ratio began at a high of 21.93 in 2006, indicating a high market premium. A significant valuation contraction occurred in 2009, where the ratio dropped to 3.43; this was driven by a sharp decline in share price while operating profits continued to rise. From 2010 to 2015, the ratio fluctuated between 6.26 and 13.66, suggesting a period of relative stabilization. The ratio is not calculable for 2016 due to the negative operating profit recorded for that period.
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