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
Procter & Gamble Co., current price multiples
| Procter & Gamble Co. | Consumer Staples | ||
|---|---|---|---|
| Selected Financial Data | |||
| Current share price (P) | $148.01 | ||
| No. shares of common stock outstanding | 2,324,433,060 | ||
| Growth rate (g) | 11.99% | ||
| Earnings per share (EPS) | $6.78 | ||
| Next year expected EPS | $7.59 | ||
| Operating profit per share | $8.50 | ||
| Sales per share | $37.44 | ||
| Book value per share (BVPS) | $23.27 | ||
| Valuation Ratios (Price Multiples) | |||
| Price to earnings (P/E) | 21.84 | 32.17 | |
| Price to next year expected earnings | 19.50 | 28.83 | |
| Price-earnings-growth (PEG) | 1.82 | 2.78 | |
| Price to operating profit (P/OP) | 17.42 | 24.23 | |
| Price to sales (P/S) | 3.95 | 1.96 | |
| Price to book value (P/BV) | 6.36 | 10.39 | |
Based on: 10-K (reporting date: 2026-06-30).
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)
Procter & Gamble Co., historical price multiples
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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).
An analysis of the valuation multiples from June 2021 through June 2026 reveals a consistent pattern of expansion followed by a contraction across all tracked metrics. Valuation ratios peaked in June 2024 before entering a downward trend, suggesting a correction in market pricing relative to fundamental financial performance during the final two years of the period.
- Price to Earnings (P/E)
- The P/E ratio showed a general upward trajectory from 24.46 in 2021, reaching a maximum of 27.11 in 2024. This growth was followed by a significant decline, with the ratio dropping to 22.52 in 2025 and further to 21.84 by June 2026, indicating a reduction in the multiple the market is willing to pay per dollar of earnings.
- Price to Operating Profit (P/OP)
- A similar trend is observed in the P/OP ratio, which climbed from 19.08 in 2021 to a peak of 21.33 in 2024. Following this peak, the ratio experienced a sharp contraction to 17.27 in 2025, remaining relatively flat at 17.42 in 2026.
- Price to Sales (P/S)
- The P/S ratio remained comparatively stable in the early years, fluctuating between 4.31 and 4.51 before peaking at 4.71 in 2024. In the subsequent two years, the ratio declined steadily, ending the period at its lowest point of 3.95 in 2026.
- Price to Book Value (P/BV)
- The P/BV ratio increased from 7.40 in 2021 to a high of 7.87 in 2024. This was followed by a notable decrease to 6.79 in 2025 and a further decline to 6.36 by June 2026, reflecting a contraction in the premium over book value.
The synchronization of the peak across all four multiples in June 2024 suggests a uniform shift in valuation sentiment. The subsequent decrease in all ratios by June 2026 indicates either a decrease in stock price or a more rapid growth in underlying fundamentals—earnings, operating profit, sales, and book value—relative to the share price.
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Price to Earnings (P/E)
Procter & Gamble Co., historical P/E calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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).
1 Data adjusted for splits and stock dividends.
2 2026 Calculation
EPS = Net earnings attributable to P&G available to common shareholders ÷ No. shares of common stock outstanding
= 15,754,000,000 ÷ 2,324,433,060 = 6.78
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2026 Calculation
P/E ratio = Share price ÷ EPS
= 148.01 ÷ 6.78 = 21.84
The financial data reveals a divergence between fundamental earnings growth and market valuation over the analyzed six-year period. While profitability demonstrated consistent expansion, the market valuation multiple experienced a cycle of expansion followed by contraction.
- Earnings per Share (EPS) Performance
- A sustained upward trend in earnings per share is observed, progressing from 5.78 US$ in 2021 to 6.78 US$ in 2026. This continuous growth indicates a steady improvement in the company's bottom-line profitability regardless of share price volatility.
- Share Price Dynamics
- The share price exhibited a growth phase from 2021 to 2024, ascending from 141.41 US$ to a peak of 168.06 US$. Following this peak, a downward reversal occurred, with the price declining to 148.01 US$ by June 30, 2026.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio showed moderate fluctuations between 2021 and 2023 before peaking at 27.11 in 2024, representing the highest valuation multiple in the series. Subsequently, a significant contraction in the multiple is evident, with the ratio falling to 22.52 in 2025 and further to 21.84 in 2026. This compression suggests that the market is paying less per dollar of earnings in the final two years despite the continued increase in EPS.
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Price to Operating Profit (P/OP)
Procter & Gamble Co., historical P/OP calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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).
1 Data adjusted for splits and stock dividends.
2 2026 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 19,748,000,000 ÷ 2,324,433,060 = 8.50
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 148.01 ÷ 8.50 = 17.42
The valuation of common stock relative to operating profit exhibits a period of expansion followed by a sharp correction and subsequent stabilization. Between June 2021 and June 2024, there was a consistent increase in the price-to-operating profit (P/OP) multiple, which grew from 19.08 to a peak of 21.33. This trend reversed significantly in 2025, with the ratio contracting to 17.27, before stabilizing slightly at 17.42 in 2026.
- Share Price Trends
- An upward trajectory was observed from June 2021 through June 2024, with the share price rising from 141.41 to a maximum of 168.06. This growth phase was followed by a decline in 2025 and 2026, with the price ending the period at 148.01.
- Operating Profit per Share Performance
- Operating profit per share demonstrated steady growth for the majority of the analyzed period. Values increased incrementally from 7.41 in 2021 to a peak of 8.73 in 2025. A marginal decrease to 8.50 was recorded in 2026.
- P/OP Ratio Analysis
- The expansion of the P/OP ratio until 2024 indicates that the share price grew at a faster rate than the operating profit per share, leading to a higher valuation premium. A significant divergence occurred in 2025; while operating profit per share reached its highest point, the share price declined, resulting in a substantial compression of the multiple. By 2026, the ratio remained relatively flat, suggesting a period of valuation consolidation.
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Price to Sales (P/S)
Procter & Gamble Co., historical P/S calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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).
1 Data adjusted for splits and stock dividends.
2 2026 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 87,032,000,000 ÷ 2,324,433,060 = 37.44
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= 148.01 ÷ 37.44 = 3.95
The valuation of the company relative to its sales exhibits a period of stability and moderate expansion followed by a distinct contraction. While sales per share increased consistently over the six-year period, the price-to-sales (P/S) ratio experienced a peak in 2024 before entering a downward trend.
- Sales per Share Performance
- A consistent upward trajectory is observed in sales per share, which rose from 31.36 US$ in 2021 to 37.44 US$ by 2026. This represents steady growth in the revenue generated per outstanding share throughout the analyzed period.
- Share Price Movement
- The share price increased incrementally from 141.41 US$ in 2021 to a peak of 168.06 US$ in 2024. Following this peak, a reversal occurred, with the price declining to 150.76 US$ in 2025 and further to 148.01 US$ by 2026.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio remained relatively stable between 2021 and 2024, fluctuating between 4.31 and 4.71. However, a notable compression of the multiple occurred in the final two years, with the ratio dropping to 4.19 in 2025 and reaching a period low of 3.95 in 2026. This decline indicates that the market valuation of the company's sales decreased even as the actual sales per share continued to grow.
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Price to Book Value (P/BV)
Procter & Gamble Co., historical P/BV calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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).
1 Data adjusted for splits and stock dividends.
2 2026 Calculation
BVPS = Shareholders’ equity attributable to Procter & Gamble ÷ No. shares of common stock outstanding
= 54,081,000,000 ÷ 2,324,433,060 = 23.27
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= 148.01 ÷ 23.27 = 6.36
The Price to Book Value (P/BV) ratio exhibits a non-linear trajectory over the observed period, characterized by a moderate valuation expansion through 2024 followed by a significant contraction in the subsequent two years.
- Share Price Trends
- The market price per share demonstrated a growth phase between June 2021 and June 2024, rising from 141.41 US$ to a peak of 168.06 US$. Following this peak, a downward trend occurred, with the price retreating to 148.01 US$ by June 2026.
- Book Value per Share (BVPS) Growth
- A consistent and uninterrupted increase in the book value per share is observed. BVPS grew from 19.11 US$ in 2021 to 23.27 US$ in 2026, indicating a steady strengthening of the company's underlying equity position per share throughout the entire duration.
- P/BV Ratio Analysis
- The P/BV ratio increased from 7.40 in 2021 to a maximum of 7.87 in 2024, driven by share price appreciation that outpaced the growth of the book value. However, from 2024 to 2026, the ratio experienced a sharp decline to 6.36. This compression is the result of a decoupling where the share price decreased while the book value continued to rise, leading to a lower market premium relative to the company's accounting value.
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