SLB N.V. (NYSE:SLB)

The price-to-earnings (P/E) ratio, calculated from share price and earnings per share, exhibits considerable fluctuation over the observed period. Initial values indicate a relatively high valuation, followed by periods of decline and subsequent recovery, though not consistently. The analysis reveals distinct phases characterized by varying investor sentiment and earnings performance.

Initial Valuation (2006-2008)

From 2006 to 2008, the P/E ratio decreased from 31.70 to 19.64. This decline occurred alongside increasing earnings per share, suggesting that while the company’s profitability improved, investor enthusiasm did not keep pace, or perhaps adjusted to expectations of future growth. The share price also increased during this period, but at a slower rate than earnings.

Volatility and Decline (2009-2016)

The period between 2009 and 2016 demonstrates significant volatility. The P/E ratio initially dropped sharply to 9.36 in 2009, likely influenced by broader economic conditions and potentially concerns about future earnings. It then experienced fluctuations, peaking at 39.75 in 2016, a substantial increase driven by a low earnings per share value (-1.21 in 2017). The negative earnings in 2017 resulted in a missing P/E ratio calculation, indicating an unprofitable year. This period highlights the sensitivity of the P/E ratio to earnings fluctuations.

Recent Trends (2017-2026)

From 2018 onwards, the P/E ratio shows a more moderate range of fluctuation. A peak of 29.69 is observed in 2021, followed by a decrease to 13.07 in 2023. The most recent values, 21.78 in 2026, suggest a stabilization, though still within a fluctuating range. Earnings per share have generally increased in this period, contributing to the observed P/E ratio movements. The missing P/E values in 2018 and 2020 correspond to negative earnings per share, rendering the ratio meaningless.

Overall, the P/E ratio demonstrates a lack of consistent trend. It is heavily influenced by both share price movements and, crucially, the company’s earnings performance. Periods of negative earnings significantly distort the ratio, making interpretation challenging. The observed fluctuations suggest that investor sentiment and market conditions play a substantial role in the company’s valuation.