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
Schlumberger Ltd., current price multiples
| Schlumberger Ltd. | Energy | ||
|---|---|---|---|
| Selected Financial Data | |||
| Current share price (P) | $35.84 | ||
| No. shares of common stock outstanding | 1,360,161,654 | ||
| Growth rate (g) | 0.20% | ||
| Earnings per share (EPS) | $3.28 | ||
| Next year expected EPS | $3.29 | ||
| Operating profit per share | $4.27 | ||
| Sales per share | $26.68 | ||
| Book value per share (BVPS) | $15.53 | ||
| Valuation Ratios (Price Multiples) | |||
| Price to earnings (P/E) | 10.93 | 14.37 | |
| Price to next year expected earnings | 10.91 | 13.19 | |
| Price-earnings-growth (PEG) | 55.26 | 1.61 | |
| Price to operating profit (P/OP) | 8.40 | 9.40 | |
| Price to sales (P/S) | 1.34 | 1.49 | |
| Price to book value (P/BV) | 2.31 | 1.81 | |
Based on: 10-K (reporting date: 2024-12-31).
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)
Schlumberger Ltd., historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Price to earnings (P/E) ratio
- The P/E ratio shows a clear declining trend from 29.69 in 2021 to 13.07 in 2024. This steady decrease suggests that the market is assigning a lower valuation per unit of earnings over time, which may indicate increased confidence in the company's earnings or a shift in market expectations regarding growth prospects or risk.
- Price to operating profit (P/OP) ratio
- This ratio also exhibits a consistent downward trend, moving from 20.2 in 2021 to 10.05 in 2024. The declining P/OP ratio aligns with the P/E ratio trend, reflecting a similar market sentiment of reduced valuation multiples relative to operating profitability. This may imply improved operating profit margins or increasing operating efficiency reported by the company.
- Price to sales (P/S) ratio
- The P/S ratio increased from 1.29 in 2020 to a peak of 2.84 in 2022, before declining to 1.61 in 2024. This pattern suggests that the market valuation relative to sales rose significantly until 2022, potentially driven by sales growth expectations or improved revenue quality. The subsequent decrease indicates a normalization or market reassessment of sales growth prospects or profitability associated with sales.
- Price to book value (P/BV) ratio
- The P/BV ratio first increased from 2.52 in 2020 to a peak of 4.52 in 2022, followed by a decline to 2.76 in 2024. This trend mirrors the P/S ratio's pattern, suggesting heightened valuation against the book value in 2022 followed by a retreat. The movement could reflect changes in asset valuations, equity strength, or shifting market perceptions of the company's net asset value.
Price to Earnings (P/E)
Schlumberger Ltd., historical P/E calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income (loss) attributable to SLB ÷ No. shares of common stock outstanding
= 4,461,000,000 ÷ 1,400,850,420 = 3.18
3 Closing price as at the filing date of Schlumberger Ltd. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 41.63 ÷ 3.18 = 13.07
The analysis of the financial data over the five-year period reveals several key trends in the company's share price, earnings per share (EPS), and price-to-earnings (P/E) ratio.
- Share Price
- The share price exhibited a strong upward trend from 2020 to 2022, increasing from $21.81 to a peak of $56.25. However, after reaching this peak, the share price experienced a decline in the subsequent two years, dropping to $51.67 in 2023 and further to $41.63 in 2024. The initial growth indicates positive market sentiment, but the recent decline may suggest market correction or emerging concerns.
- Earnings Per Share (EPS)
- The EPS showed significant improvement from 2020 to 2024. In 2020, the EPS was negative at -$7.55, indicating a loss. This reversed to positive territory in 2021 with $1.34 and continued to grow steadily over the next three years, reaching $3.18 in 2024. This consistent increase highlights improved profitability and operational performance over time.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio, which was not available for 2020 due to negative earnings, has been steadily declining from 29.69 in 2021 to 13.07 in 2024. This downward trend reflects that the market valuation relative to earnings is compressing. The decline could be a result of the share price falling faster than earnings growth, or investors adjusting their expectations about future growth prospects.
In summary, the financial indicators show that while the company improved its earnings significantly after 2020, leading to a higher share price until 2022, the subsequent decrease in share price combined with steady earnings growth has resulted in a lower P/E ratio. This pattern suggests a transition towards more stable valuation metrics as the company moves out of its loss-making phase and into sustained profitability. The declining share price in the last two years warrants attention, as it may reflect external market pressures or shifts in investor sentiment despite continued earnings growth.
Price to Operating Profit (P/OP)
Schlumberger Ltd., historical P/OP calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 5,804,000,000 ÷ 1,400,850,420 = 4.14
3 Closing price as at the filing date of Schlumberger Ltd. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 41.63 ÷ 4.14 = 10.05
The financial data from 2020 to 2024 reveals significant changes in Schlumberger Ltd.'s market performance and profitability metrics.
- Share Price
- The share price exhibited a strong upward trend from 2020 to 2022, rising from $21.81 to a peak of $56.25. However, this was followed by a decline in both 2023 and 2024, bringing the price down to $51.67 and then further to $41.63. Despite the decrease in the last two years, the 2024 share price remains notably higher than the 2020 figure.
- Operating Profit per Share
- The operating profit per share showed a marked improvement over the five-year period. Initially negative at -$7.90 in 2020, it turned positive in 2021 with $1.97, followed by a steady increase through 2022 to 2024, reaching $4.14. This progression indicates a recovery and strengthening of operational profitability.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio data is missing for 2020 but shows a declining trend from 20.2 in 2021 to 10.05 in 2024. The reduction in this ratio implies that the share price has become increasingly more aligned with or less expensive relative to its operating profit per share over time, reflecting potentially improving market perceptions of value or operational efficiency gains.
Overall, the data suggests a recovery and improvement in operational profitability alongside fluctuations in market valuation, with the share price peaking and then partially retracting, while operating profit grew steadily. The declining P/OP ratio points to a more favorable valuation relative to operating profit metrics by the end of the analyzed period.
Price to Sales (P/S)
Schlumberger Ltd., historical P/S calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 36,289,000,000 ÷ 1,400,850,420 = 25.90
3 Closing price as at the filing date of Schlumberger Ltd. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 41.63 ÷ 25.90 = 1.61
- Share Price
- The share price exhibited a notable upward trend from 2020 through 2022, rising from $21.81 to a peak of $56.25. Subsequently, there was a decline in 2023 to $51.67, followed by a further decrease in 2024 to $41.63. Overall, the share price more than doubled from 2020 to 2024, despite the recent downward movement.
- Sales Per Share
- Sales per share showed a consistent increase over the five-year period. Beginning at $16.95 in 2020, the figure dropped slightly in 2021 to $16.34 but recovered and rose steadily to $19.78 in 2022, and continued increasing through 2023 and 2024 to reach $25.90. This steady growth suggests improving revenue generation on a per-share basis.
- Price-to-Sales (P/S) Ratio
- The P/S ratio increased significantly from 1.29 in 2020 to 2.84 in 2022, indicating investors were willing to pay more for each dollar of sales during this period. However, from 2022 onwards, the ratio decreased to 2.23 in 2023 and further to 1.61 in 2024. This downward trend may reflect market reassessment of the company’s valuation relative to its sales performance.
- Overall Trends and Insights
- The data suggests that while sales per share have consistently increased, indicating operational growth, the market valuation reflected by the share price and P/S ratio has experienced more volatility. The peak in share price and P/S ratio in 2022 followed by declines implies fluctuations in market sentiment or external factors influencing investor confidence. Despite the share price decline in recent years, the P/S ratio in 2024 remains above the 2020 level, indicating better sales performance is still being valued more positively than at the start of the period.
Price to Book Value (P/BV)
Schlumberger Ltd., historical P/BV calculation, comparison to benchmarks
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total SLB stockholders’ equity ÷ No. shares of common stock outstanding
= 21,130,000,000 ÷ 1,400,850,420 = 15.08
3 Closing price as at the filing date of Schlumberger Ltd. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 41.63 ÷ 15.08 = 2.76
- Share Price
- The share price exhibited a strong upward trend from 2020 through 2022, increasing from $21.81 to a peak of $56.25. However, the price declined in the following two years, dropping to $51.67 in 2023 and further to $41.63 in 2024. Despite the recent decline, the share price remained significantly above the 2020 level.
- Book Value per Share (BVPS)
- BVPS demonstrated consistent growth throughout the five-year period, rising steadily from $8.67 in 2020 to $15.08 in 2024. This reflects a stable accumulation of net assets on a per-share basis over time, indicating ongoing value creation at the book level.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio rose sharply from 2.52 in 2020 to its highest point of 4.52 in 2022, suggesting increasing investor optimism and a premium placed on the company's book value. Subsequently, the ratio declined to 3.65 in 2023 and 2.76 in 2024, indicating a moderation in the market valuation relative to book value. This movement reflects both the share price decrease and the continued increase in BVPS.