Price to Operating Profit (P/OP)
since 2005
Calculation
Procter & Gamble Co., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Aug 5, 2024 | 21.33 | = | 168.06 | ÷ | 7.88 | 7.88 | = | 18,545 | ÷ | 2,354,050,987 | |
| Aug 4, 2023 | 20.19 | = | 155.28 | ÷ | 7.69 | 7.69 | = | 18,134 | ÷ | 2,357,306,187 | |
| Aug 5, 2022 | 19.41 | = | 144.72 | ÷ | 7.45 | 7.45 | = | 17,813 | ÷ | 2,389,553,883 | |
| Aug 6, 2021 | 19.08 | = | 141.41 | ÷ | 7.41 | 7.41 | = | 17,986 | ÷ | 2,427,424,874 | |
| Aug 6, 2020 | 21.01 | = | 132.71 | ÷ | 6.32 | 6.32 | = | 15,706 | ÷ | 2,486,086,692 | |
| Aug 6, 2019 | 52.12 | = | 114.28 | ÷ | 2.19 | 2.19 | = | 5,487 | ÷ | 2,502,259,668 | |
| Aug 7, 2018 | 15.00 | = | 82.64 | ÷ | 5.51 | 5.51 | = | 13,711 | ÷ | 2,488,011,390 | |
| Aug 7, 2017 | 16.71 | = | 91.44 | ÷ | 5.47 | 5.47 | = | 13,955 | ÷ | 2,550,014,230 | |
| Aug 9, 2016 | 17.07 | = | 85.99 | ÷ | 5.04 | 5.04 | = | 13,441 | ÷ | 2,668,751,125 | |
| Aug 7, 2015 | 17.37 | = | 75.48 | ÷ | 4.35 | 4.35 | = | 11,790 | ÷ | 2,712,561,733 | |
| Aug 8, 2014 | 14.34 | = | 80.95 | ÷ | 5.65 | 5.65 | = | 15,288 | ÷ | 2,707,652,337 | |
| Aug 8, 2013 | 15.54 | = | 82.17 | ÷ | 5.29 | 5.29 | = | 14,481 | ÷ | 2,738,760,542 | |
| Aug 8, 2012 | 13.83 | = | 66.72 | ÷ | 4.83 | 4.83 | = | 13,292 | ÷ | 2,754,274,536 | |
| Aug 10, 2011 | 10.16 | = | 58.51 | ÷ | 5.76 | 5.76 | = | 15,818 | ÷ | 2,747,768,202 | |
| Aug 13, 2010 | 10.60 | = | 59.82 | ÷ | 5.64 | 5.64 | = | 16,021 | ÷ | 2,838,474,868 | |
| Aug 14, 2009 | 9.48 | = | 52.37 | ÷ | 5.52 | 5.52 | = | 16,123 | ÷ | 2,918,890,075 | |
| Aug 28, 2008 | 12.61 | = | 71.01 | ÷ | 5.63 | 5.63 | = | 17,083 | ÷ | 3,034,310,829 | |
| Aug 28, 2007 | 13.07 | = | 64.70 | ÷ | 4.95 | 4.95 | = | 15,450 | ÷ | 3,120,750,759 | |
| Aug 29, 2006 | 14.67 | = | 61.20 | ÷ | 4.17 | 4.17 | = | 13,249 | ÷ | 3,175,086,100 | |
| Aug 29, 2005 | 12.53 | = | 55.64 | ÷ | 4.44 | 4.44 | = | 10,927 | ÷ | 2,461,253,748 |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
- Share Price Trend
- The share price exhibited a general upward trajectory over the observed period, starting at $55.64 in 2005 and reaching $168.06 by 2024. This growth was accompanied by some fluctuations, including a notable dip around 2009 to $52.37, likely influenced by broader market conditions. After this trough, the share price steadily increased with occasional minor pullbacks, particularly noticeable around 2013 and 2018, before resuming an upward trend.
- Operating Profit per Share Analysis
- The operating profit per share demonstrated variability across the years, with values beginning at $4.44 in 2005 and experiencing fluctuations thereafter. A peak was observed in 2008 at $5.63, followed by a slight decline and some inconsistency, notably dropping to $2.19 in 2019. However, from 2019 onward, there was a marked recovery and upward trend, culminating at $7.88 in 2024, which represents the highest value in the series. This indicates improved operational profitability in recent years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed a considerable increase over time, moving from 12.53 in 2005 to 21.33 in 2024. After reaching a low of 9.48 in 2009, the ratio rose steadily, reflecting a higher share price relative to operating profit per share. Significant increases took place especially after 2015, suggesting either heightened market expectations or a premium valuation of earnings. The spike to 52.12 in 2019 is an outlier connected to the sharp drop in operating profit per share that year, which inflated the ratio temporarily. Following this peak, the ratio stabilized but remained elevated compared to earlier years, indicative of sustained investor confidence or a higher valuation multiple attributed to operating profits.
- Overall Insights
- Over the years, the data depict a company with growing market valuation, as evidenced by the rising share price, despite fluctuations in operating profitability. The operant profit per share's volatility, particularly the sharp decline in 2019 and subsequent recovery, suggests periods of operational challenges and successful turnaround efforts. The increasing P/OP ratio indicates a progressively higher market valuation relative to operating profits, which may reflect positive investor sentiment, expectations of future growth, or changes in market dynamics affecting valuation metrics.