Procter & Gamble Co. (NYSE:PG)

The analysis of the financial data reveals several key trends in the company's market valuation and earnings performance over the period from 2005 to 2024.

Share Price (US$)

The share price shows a general upward trajectory throughout the period, increasing from $55.64 in August 2005 to $168.06 in August 2024. This reflects a substantial appreciation in market value, nearly tripling over the nineteen-year span. The growth is relatively steady with some fluctuations, including a notable dip in 2009 coinciding with broader market conditions. After 2013, the share price consistently remains above $80, with strong gains observed particularly from 2018 onwards, indicating renewed investor confidence.

Earnings per Share (EPS) (US$)

EPS exhibits variability over the years, with values ranging from a low of $1.45 in 2019 to a high of $6.2 in 2024. Initial fluctuations are observed between 2005 and 2014, where EPS values oscillate without a clear upward or downward trend. Starting from 2015, EPS generally improves, suggesting enhanced profitability or operational efficiency. A sharp decline is visible in 2019, followed by a strong rebound, reaching the highest recorded EPS in the final year of observation. This pattern indicates some episodic challenges but overall positive earnings growth over the long term.

Price-to-Earnings (P/E) Ratio

The P/E ratio varies significantly, fluctuating from a low of 11.54 in 2009 to a high of 78.69 in 2019. The lower ratios around 2009 may reflect undervaluation or improved earnings relative to price during a market downturn. Post-2010, the ratio generally rises, sometimes substantially, which might indicate increasing market expectations for future earnings growth or overvaluation at certain points. The peak in 2019 corresponds with a very low EPS, suggesting that the high P/E was driven by depressed earnings rather than share price inflation. Following this peak, the P/E declines and stabilizes in the mid-20s by 2024, aligning with improved earnings performance.

Overall, the data suggest a company that has experienced significant growth in market value supported by improving earnings over the long term, with periodic volatility reflecting economic cycles and possibly company-specific factors. The fluctuating P/E ratios imply changes in market sentiment and valuation perceptions, correlating with the company's varying earnings performance. The recent strong EPS numbers coupled with high but more stable share prices point toward a mature phase of positive earnings momentum and sustained investor confidence.