SLB N.V. (NYSE:SLB)

The analysis of the given financial ratios over the specified periods reveals several notable trends and shifts in valuation metrics.

Price to Earnings (P/E) Ratio

The P/E ratio data begins from the period with a level around 40.12 and shows a general downward trend over time, reaching its lowest levels around 11.21 to 11.64 in the years 2025. There are some fluctuations in intermediate quarters, but the overall pattern depicts a consistent decrease in the P/E ratio. This suggests that the market has been valuing the company’s earnings at a progressively lower multiple, which could indicate expectations of moderated earnings growth, changes in risk perception, or market valuation adjustments.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio starts relatively high at 24.54 and follows a decreasing trajectory throughout the periods analyzed. The decrease is marked, ending at around 9.06 to 10.92 in the latest recorded quarters. The decline in this ratio indicates that the company’s operating profits are being valued at lower multiples over time, which could reflect improved operational efficiency, greater profit stability, or shifts in market sentiment toward the company's operational performance.

Price to Sales (P/S) Ratio

The Price to Sales ratio displays more volatility but generally rises in the middle periods, peaking around 2.84, before declining again toward the later periods and settling near 1.34 to 1.48. This pattern shows that initially, the company’s sales were valued higher relative to price, but this valuation has tempered over time. Such trends may indicate fluctuating sales growth expectations or changes in revenue quality or profitability margins.

Price to Book Value (P/BV) Ratio

This ratio exhibits a rising trend early on, climbing from approximately 1.37 to peaks around 4.52, before gradually decreasing to levels near 2.03 in the final periods. The initial rise suggests increased investor confidence or asset revaluation gains, while the subsequent decline could be attributed to asset depreciation, changes in book value, or a reassessment of the company's net asset value by investors.

In summary, the company's valuation ratios have generally experienced downward pressure over the observed periods, particularly in earnings and operating profit multiples. The fluctuations in sales and book value multiples suggest varying market perceptions of revenue quality and asset values. The overall trend towards lower multiples could point to tempered market expectations for growth or profitability in coming periods.

Share Price

The share price exhibited variability over the observed periods. Initially, it increased from 15.34 US$ at the end of Q1 2020 to a peak of 39.8 US$ by Q4 2021. After a plateau around 40 US$ through early 2022, the price rose further reaching a high of 57.67 US$ in Q2 2023. Subsequently, a downward trend emerged with the price dropping gradually to 34.9 US$ by Q3 2025. This suggests a period of significant growth up to mid-2023, followed by a notable decline in value toward the later quarters.

Earnings Per Share (EPS)

EPS data was not available in the early quarters but started reflecting negative values in Q4 2020 (-7.55 US$) and Q1 2021 (-2.03 US$). From Q2 2021 onward, EPS turned positive and demonstrated a steady upward trend, rising from 0.73 US$ through to a peak of around 3.18 US$ in Q1 2025. However, toward the final quarters, a slight decline was observed with EPS decreasing to 2.44 US$ by Q3 2025. This steady growth indicates improving profitability over time after overcoming initial losses, followed by a mild deceleration in the last periods.

Price to Earnings (P/E) Ratio

The P/E ratio was not reported for several early quarters but became available from Q3 2021 onward. The ratio initially registered a high of 40.12, dropping significantly to 11.21 by Q2 2025, then experiencing a slight rise to 14.3 by Q3 2025. The downward trend in P/E suggests that while earnings grew, the share price growth was comparatively moderate or that investors reassessed the valuation multiples more conservatively as time progressed.

Overall Financial Trends

The analyzed financial data shows a clear recovery from initial losses to sustained profitability, with EPS progressively increasing. The share price largely followed a growth trajectory until mid-2023 before declining. The P/E ratio decrease over time implies a market adjustment in valuation reflecting enhanced earnings stability or changes in investor sentiment. The decline in share price after 2023 despite elevated EPS could indicate external pressures, market conditions, or internal company factors not directly reflected in earnings alone.

Share Price Trend

The share price exhibited volatility over the reported quarters. It began at $15.34 and showed a gradual upward trend peaking at $56.25 by the end of 2022. Following this peak, the price generally declined, reaching approximately $34.90 by the last recorded quarter. This pattern indicates an initial phase of rapid growth followed by a correction or stabilization at a lower valuation level.

Operating Profit Per Share

Operating profit per share was initially negative or absent in the early quarters but turned positive starting in mid-2020. Thereafter, it demonstrated consistent growth from $1.19 to a peak near $4.16 in early 2024, indicating improving operational profitability over time. A slight decline is observed in later quarters, with the figure tapering to about $3.20, suggesting some deceleration in profit growth or increased operational challenges toward the end of the period.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio revealed a general decreasing trend, falling from above 20 in several quarters down to single digits near 8.46 and 9.06 in 2025. This decline suggests a reduction in market valuation multiples relative to operating profit, implying that either the share price is becoming more reasonably valued relative to earnings or market sentiment is becoming more cautious despite growing operating profits.

Integrated Observations

The data indicate an initial growth phase marked by rising share prices and improving operating profit per share. However, as operating profit stabilized and slightly declined after peaking, the share price corrected downward. The decreasing P/OP ratio supports the view of a market adjustment to a more moderate valuation level relative to earnings. These trends point to a maturation in performance and valuation, with current metrics signaling more conservative investor expectations compared to the earlier high-growth phase.

Share Price Trends

The share price exhibited significant fluctuations over the observed periods. Initially, it rose from $15.34 to $21.81 by the end of 2020, followed by steady increases reaching a peak near $56.25 in the fourth quarter of 2022. Subsequently, the price showed a declining pattern, dropping to approximately $34.90 by the third quarter of 2025. This indicates a period of growth with strong appreciation, followed by a notable correction in recent quarters.

Sales Per Share Patterns

Sales per share data begins in the first quarter of 2021, starting at $16.95 and demonstrating consistent growth thereafter. The figure increased steadily, reaching a peak of $26.52 in the third quarter of 2025 before declining slightly to $23.59 in the last reported quarter. This growth trend reflects an improving sales performance over time, although the recent downturn merits attention.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio started at 1.29 in the first quarter of 2021 and increased to a peak of 2.84 in the first quarter of 2023, suggesting rising market valuation relative to sales during this interval. After this peak, the P/S ratio experienced a steady decline to about 1.48 by the third quarter of 2025. This trend implies that while sales were growing, market valuation has become more conservative over time, possibly reflecting changing investor sentiment or valuation adjustments.

Overall Financial Insights

The financial indicators reveal an initial phase of strong market optimism and growing sales, with share prices and P/S ratios increasing robustly until early 2023. Following this period, the data indicates a correction phase characterized by declining share prices and P/S ratios despite generally rising sales per share until mid-2025, where a slight decrease appears. The divergence between falling market valuation multiples and sales trends suggests investors may be reassessing growth prospects or risk factors.

Share Price Trends

The share price demonstrated a fluctuating upward trend from early 2020 to late 2023, rising significantly from $15.34 in March 2020 to a peak of $57.67 in June 2023. After this peak, there was a general declining trend observed through to September 2025, where the price settled around $34.90. Notable peaks occurred in December 2021 and December 2022, followed by some volatility and a general decrease starting from mid-2023.

Book Value Per Share (BVPS) Trends

Book value per share showed a steady and consistent increase throughout the entire period analyzed. Beginning from $11.21 in March 2020, it slightly dipped in June and September 2020 before gradually rising to $17.16 by September 2025. This demonstrates ongoing growth in the company's net asset value per share over time, reflecting improving underlying financial strength.

Price-to-Book Value Ratio (P/BV) Trends

The P/BV ratio exhibited significant volatility relative to the underlying steady growth of BVPS. Starting at 1.37 in March 2020, it peaked multiple times, reaching as high as 4.52 in December 2022. This spike corresponds with increased market valuations relative to book value during that period. After the peak, a downward trend is observable, with the ratio falling back to approximately 2.03 by September 2025, suggesting the market valuation compressed closer to the book value in recent periods.

Interrelationship Between Share Price, BVPS, and P/BV

The share price fluctuations are amplified relative to the steadier increase in BVPS, as reflected by the more volatile P/BV ratio. The rising BVPS indicates sustained internal value growth, while the share price and P/BV changes imply market sentiment and external factors having pronounced effects on valuation multiples. Notably, periods of share price peak correspond to elevated P/BV ratios, while a declining share price in the latter part of the timeline aligns with a falling P/BV ratio, despite the continued growth in BVPS.

Summary

The financial data reveals that the company's intrinsic value, measured by book value per share, has shown consistent improvement over the years analyzed. Market valuation, however, has fluctuated substantially, reflected in greater volatility in share price and P/BV. After robust gains and valuation expansions up to mid-2023, the latter period shows a retrenchment in market valuations, bringing the share price and P/BV ratio closer to more moderate levels despite continued growth in book value. This pattern suggests a transition from valuation inflation to a more value-aligned pricing environment.