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) | $150.51 | ||
| No. shares of common stock outstanding | 2,342,371,488 | ||
| Growth rate (g) | 11.96% | ||
| Earnings per share (EPS) | $6.69 | ||
| Next year expected EPS | $7.50 | ||
| Operating profit per share | $8.73 | ||
| Sales per share | $35.98 | ||
| Book value per share (BVPS) | $22.20 | ||
| Valuation Ratios (Price Multiples) | |||
| Price to earnings (P/E) | 22.48 | 33.13 | |
| Price to next year expected earnings | 20.08 | 29.76 | |
| Price-earnings-growth (PEG) | 1.88 | 2.93 | |
| Price to operating profit (P/OP) | 17.24 | 23.59 | |
| Price to sales (P/S) | 4.18 | 1.88 | |
| Price to book value (P/BV) | 6.78 | 10.62 | |
Based on: 10-K (reporting date: 2025-06-30).
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: 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), 10-K (reporting date: 2020-06-30).
The financial ratios over the periods from June 30, 2020, to June 30, 2025, reflect several notable trends in valuation metrics for the company.
- Price to Earnings (P/E) Ratio
- The P/E ratio showed a decreasing trend from 25.85 in 2020 to 23.91 in 2022, indicating a gradual reduction in price relative to earnings during this period. However, it then rose to a peak of 27.11 by 2024, suggesting a temporary increase in market valuation relative to earnings. This was followed by a decline to 22.52 in 2025, the lowest value in the observed interval, indicating a potential undervaluation or earnings growth outpacing price.
- Price to Operating Profit (P/OP) Ratio
- Similarly, the P/OP ratio decreased from 21.01 in 2020 to approximately 19.08 in 2021, indicating improved valuation relative to operating profits. The ratio remained relatively stable through 2022 and 2023 with slight fluctuations, rising to 21.33 in 2024 before a notable decline to 17.27 in 2025. This latter decrease represents a significant re-rating, suggesting either enhanced operating profitability or downward adjustments in market price multiples.
- Price to Sales (P/S) Ratio
- The P/S ratio gradually declined from 4.65 in 2020 to 4.31 in 2022, reflecting a slight compression in valuation versus revenue. A moderate recovery occurred in 2023 and 2024 where the ratio peaked at 4.71, exceeding the initial level in 2020. The value again fell to 4.19 in 2025, illustrating a modest contraction in price relative to sales at the end of the period.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio exhibited a general upward trend from 7.09 in 2020 to 7.87 in 2024, signaling increased investor willingness to pay a premium over book value. This upward movement suggests growing confidence in the company's asset base or future prospects. However, in 2025, the ratio dropped sharply to 6.79, marking the lowest point observed and potentially indicating a reassessment of asset valuation or market perception.
In summary, valuation multiples displayed a pattern of initial decline followed by recovery and subsequent reduction across most metrics by 2025. The consistent decline in ratios at the end of the period may reflect changing market conditions or shifts in investor sentiment, while earlier increases suggest phases of optimism regarding earnings, operating profitability, sales, and book value. The variability in these ratios underscores the dynamic nature of the company’s valuation over the five-year horizon.
Price to Earnings (P/E)
Procter & Gamble Co., historical P/E calculation, comparison to benchmarks
Based on: 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), 10-K (reporting date: 2020-06-30).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net earnings attributable to P&G available to common shareholders ÷ No. shares of common stock outstanding
= 15,682,000,000 ÷ 2,342,371,488 = 6.69
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 150.76 ÷ 6.69 = 22.52
- Share Price
- The share price shows a generally upward trend from June 2020 to June 2024, increasing from 132.71 US dollars to a peak of 168.06 US dollars. However, in the subsequent period ending June 2025, the share price declines to 150.76 US dollars, indicating a potential correction or market adjustment after several years of growth.
- Earnings Per Share (EPS)
- EPS demonstrates continuous growth over the entire period, rising steadily from 5.13 US dollars in June 2020 to 6.69 US dollars by June 2025. This consistent increase suggests improving profitability and positive earnings momentum for the company throughout the years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuates within a moderate range. It declines from 25.85 in June 2020 to 23.91 in June 2022, indicative of investors paying slightly less for each dollar of earnings during this period. Afterward, it rises to 27.11 by June 2024, suggesting increased investor confidence or higher growth expectations. The ratio then decreases to 22.52 in June 2025, which may reflect a recalibration of market valuation relative to earnings despite the EPS increase.
- Overall Analysis
- In summary, the company’s financial indicators reveal a positive trend in earnings growth accompanied by an initially strong appreciation in share price. Despite the correction in share price in the latest period, EPS continues to grow, and the P/E ratio remains within a reasonable range, reflecting a balanced valuation environment. These patterns indicate sustained operational performance alongside market-driven adjustments in valuation.
Price to Operating Profit (P/OP)
Procter & Gamble Co., historical P/OP calculation, comparison to benchmarks
Based on: 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), 10-K (reporting date: 2020-06-30).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 20,451,000,000 ÷ 2,342,371,488 = 8.73
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 150.76 ÷ 8.73 = 17.27
- Share Price
- The share price exhibited an overall upward trend from June 30, 2020, to June 30, 2024, increasing from $132.71 to $168.06. This represents a steady growth over four years, indicating positive market sentiment or company performance. However, in the final period ending June 30, 2025, the share price declined to $150.76, suggesting a potential shift in investor confidence or external market factors impacting the stock negatively after a period of sustained growth.
- Operating Profit Per Share
- Operating profit per share demonstrated consistent growth across all periods, starting at $6.32 in June 2020 and reaching $8.73 by June 2025. The increases were gradual but steady each year, reflecting improvements in operating profitability on a per-share basis. This indicates efficient operational management and possibly improved margins or revenue growth contributing to higher earnings per share from operations.
- Price-to-Operating Profit Ratio (P/OP)
- The Price-to-Operating Profit ratio showed some fluctuation but remained largely stable between 19 and 21 from 2020 to 2024. The ratio decreased from 21.01 in 2020 to 19.08 in 2021, indicating that the share price grew at a slower pace than operating profit per share during that time. It then increased upward to 21.33 by 2024, before a marked drop to 17.27 in 2025. This decline in the last period suggests that while operating profit per share increased significantly, the market price did not keep pace, potentially implying a valuation adjustment or increased investor caution.
- Overall Insights
- Across the timeframe, the company demonstrated improving operational profitability on a per-share basis, which generally fostered growth in the share price. However, the last analysed period saw a divergence with a declining share price and a lower P/OP ratio despite rising operating profit, which may merit further investigation into underlying causes such as broader market conditions, sector-specific risks, or other company-specific developments.
Price to Sales (P/S)
Procter & Gamble Co., historical P/S calculation, comparison to benchmarks
Based on: 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), 10-K (reporting date: 2020-06-30).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 84,284,000,000 ÷ 2,342,371,488 = 35.98
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 150.76 ÷ 35.98 = 4.19
- Share Price
- The share price demonstrated a general upward trend from June 30, 2020, to June 30, 2024, increasing from $132.71 to $168.06. This indicates a positive market valuation over the period. However, in the last reported period ending June 30, 2025, the share price declined to $150.76, suggesting a recent pullback or market adjustment.
- Sales per Share
- Sales per share showed consistent growth over the entire timeframe, rising steadily from $28.54 in 2020 to $35.98 in 2025. The incremental increases each year reflect ongoing revenue growth relative to the number of outstanding shares, with the rate of growth slightly decelerating in the later years.
- Price-to-Sales Ratio (P/S)
- The P/S ratio declined from 4.65 in 2020 to 4.31 in 2022, indicating a relative decrease in valuation compared to sales. It then increased to 4.71 by 2024, suggesting greater market optimism or valuation expansion relative to sales. In the final period of 2025, the ratio dropped again to 4.19, aligning with the decrease in share price despite continued sales growth.
- Overall Insights
- The data suggests that while the company's underlying sales per share have steadily increased, market valuation as reflected by share price and P/S ratio has been more volatile. The recent decrease in share price and P/S ratio after reaching a peak in 2024 may indicate concerns or caution among investors despite improving sales metrics. The consistent sales growth underscores operational strength, but the valuation shifts highlight sensitivity to market conditions or investor sentiment.
Price to Book Value (P/BV)
Procter & Gamble Co., historical P/BV calculation, comparison to benchmarks
Based on: 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), 10-K (reporting date: 2020-06-30).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Shareholders’ equity attributable to Procter & Gamble ÷ No. shares of common stock outstanding
= 52,012,000,000 ÷ 2,342,371,488 = 22.20
3 Closing price as at the filing date of Procter & Gamble Co. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 150.76 ÷ 22.20 = 6.79
The analysis of the financial data over the six-year period reveals several notable trends regarding the share price, book value per share (BVPS), and price-to-book value ratio (P/BV) of the company.
- Share Price
- The share price demonstrated a general upward trend from 132.71 US$ in June 2020 to a peak of 168.06 US$ in June 2024, representing a significant appreciation of approximately 26.7% over four years. However, there was a decline in the final year observed, dropping to 150.76 US$ in June 2025, indicating a correction or market adjustment after the peak.
- Book Value Per Share (BVPS)
- Book value per share showed a consistent and gradual increase throughout the period, rising from 18.71 US$ in June 2020 to 22.2 US$ in June 2025. This steady growth suggests that the company’s net asset value per share improved year-over-year, reflecting potentially enhanced equity strength and retained earnings accumulation.
- Price-to-Book Value Ratio (P/BV)
- The price-to-book value ratio fluctuated within a relatively narrow range but displayed an overall trend with an initial increase from 7.09 in June 2020 to a peak of 7.87 in June 2024. This indicates that the market valuation relative to the book value was rising, possibly signaling growing investor optimism or improved market perceptions of the company’s future earnings potential during that time. In June 2025, the ratio declined to 6.79, corresponding with the share price decrease, suggesting a revaluation or adjustment in market expectations.
Overall, the data indicate positive growth in intrinsic value as measured by BVPS, alongside share price appreciation until mid-2024, followed by a correction in the subsequent year. The P/BV ratio trends support the interpretation of fluctuating but generally strong investor confidence throughout the period, with a recent modest moderation in valuation multiples.