Sysco Corp. (NYSE:SYY)

The share price of the company remained relatively stable from 2005 to 2008, fluctuating slightly around the low 30s US dollars, before experiencing a notable dip in 2009 to 25.33 US dollars. After 2009, the share price displayed a generally upward trend, increasing substantially and reaching a peak of 74.54 US dollars in 2018. Following the peak, there was some volatility, with a decline to 57.5 US dollars in 2020, likely reflecting market uncertainties, but the price rebounded strongly in subsequent years, reaching 83.63 US dollars in 2022 before slightly declining to 69.76 US dollars in 2023 and recovering again to 76.67 US dollars in 2024.

Book value per share (BVPS) showed a consistent increase from 4.4 US dollars in 2005 to a peak of 8.98 US dollars in 2014, indicating growth in the underlying net asset value per share. However, after 2014, BVPS experienced a significant decline, dropping sharply to 6.27 US dollars in 2016 and continuing to decrease to 2.28 US dollars in 2020. After 2020, book value per share slightly recovered but remained well below the earlier peak, ending at 3.78 US dollars in 2024.

The price-to-book value (P/BV) ratio reveals marked changes in market valuation relative to book value. From 2005 to about 2010, the P/BV ratio was steadily declining from 7.31 to approximately 4.23, reflecting a market correction or improvement in book value relative to share price. From 2010 onward, the P/BV ratio initially decreased and then showed a pronounced upward trend, escalating from 4.42 in 2015 to over 30 in 2022. This sharp rise indicates that the market price grew significantly faster than the book value, suggesting heightened investor optimism, possibly driven by expectations of future earnings growth or intangible assets not reflected in book value. The ratio settled back somewhat in 2023 and 2024 to around 20, still considerably elevated compared to earlier years.

Overall, while the share price exhibited strong growth and volatility, the book value per share declined after a mid-cycle peak, creating a notable divergence between market valuation and book value. The increasing P/BV ratio in recent years highlights a stronger market premium over book value, potentially implying market perceptions of the company’s intangible value or growth prospects outweighing traditional asset measures.

Share Price

Stable around low 30s from 2005 to 2008, declining in 2009, then exhibiting an overall upward trajectory with peaks and volatile swings post-2018.

Book Value per Share (BVPS)

Increasing until 2014 reaching around 9 US dollars, then sharply declining to about 2.3 US dollars in 2020, with modest recovery but remaining below peak levels.

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

Decreasing from 7.31 in 2005 to about 4 in 2010, then rising dramatically post-2015 to exceed 30 in 2022, indicating the market price outpaced the book value significantly.