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
Texas Pacific Land Corp., current price multiples
| Texas Pacific Land Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||
| Current share price (P) | $1,329.62 | ||||||||
| No. shares of common stock outstanding | 22,974,914 | ||||||||
| Growth rate (g) | 24.37% | ||||||||
| Earnings per share (EPS) | $17.66 | ||||||||
| Next year expected EPS | $21.96 | ||||||||
| Operating profit per share | $21.16 | ||||||||
| Sales per share | $27.49 | ||||||||
| Book value per share (BVPS) | $45.41 | ||||||||
| Valuation Ratios (Price Multiples) | |||||||||
| Price to earnings (P/E) | 75.31 | 34.85 | 20.59 | 23.94 | 18.78 | 18.75 | |||
| Price to next year expected earnings | 60.55 | 33.33 | 18.36 | 22.09 | 17.03 | 16.98 | |||
| Price-earnings-growth (PEG) | 3.09 | 7.64 | 1.69 | 2.86 | 1.82 | 1.80 | |||
| Price to operating profit (P/OP) | 62.85 | 20.15 | 12.15 | 16.33 | 12.61 | 12.68 | |||
| Price to sales (P/S) | 48.37 | 2.32 | 2.79 | 2.13 | 2.18 | 2.19 | |||
| Price to book value (P/BV) | 29.28 | 2.30 | 2.55 | 2.66 | 3.09 | 3.12 | |||
Based on: 10-K (reporting date: 2023-12-31).
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)
Texas Pacific Land Corp., historical price multiples
Based on: 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), 10-K (reporting date: 2019-12-31).
The valuation multiples for the period between 2019 and 2023 exhibit a distinct pattern characterized by a sharp peak in 2020 followed by a period of relative stabilization at levels significantly higher than the 2019 baseline. This synchronicity across different multiples suggests a significant volatility event in 2020, likely driven by a temporary contraction in financial fundamentals or a rapid expansion in market price premiums.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both the P/E and P/OP ratios demonstrate nearly identical trajectories. The P/E ratio escalated from 16.50 in 2019 to a peak of 48.98 in 2020, before correcting and stabilizing within a narrow range of 28.78 to 30.84 between 2021 and 2023. Similarly, the P/OP ratio rose from 13.16 in 2019 to 39.69 in 2020, subsequently settling between 21.63 and 24.48. The fact that these ratios remained elevated compared to 2019 levels suggests a sustained increase in the valuation premium applied to the company's earnings and operating performance.
- Price to Sales (P/S)
- The P/S ratio mirrors the trends observed in income-based multiples, rising from 10.72 in 2019 to a peak of 28.50 in 2020. From 2021 onward, the ratio remained elevated, fluctuating between 17.38 and 20.63, and closing at 18.48 in 2023. This indicates that the market's valuation of each dollar of revenue generated has remained approximately 72% higher than the 2019 level.
- Price to Book Value (P/BV)
- The P/BV ratio displays higher volatility and a less linear recovery than the other metrics. After increasing from 10.27 in 2019 to 17.77 in 2020, the ratio declined to 12.03 in 2021, surged again to a peak of 17.81 in 2022, and finally decreased to 11.19 by the end of 2023. This fluctuating trend suggests that the premium over book value is more susceptible to periodic market adjustments than the multiples based on sales or profit.
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Price to Earnings (P/E)
Texas Pacific Land Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 23,005,266 | 23,086,488 | 23,236,125 | 23,268,468 | 23,268,468 | |
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | 405,645) | 446,362) | 269,980) | 176,049) | 318,728) | |
| Earnings per share (EPS)2 | 17.63 | 19.33 | 11.62 | 7.57 | 13.70 | |
| Share price1, 3 | 507.46 | 596.28 | 337.37 | 370.62 | 226.07 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 28.78 | 30.84 | 29.04 | 48.98 | 16.50 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | 13.42 | 8.71 | 16.81 | — | — | |
| ConocoPhillips | 11.92 | 7.07 | 14.66 | — | — | |
| ExxonMobil Holdings Corp. | 11.49 | 8.01 | 14.11 | — | — | |
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 12.17 | 8.08 | 15.11 | — | — | |
| P/E Ratio, Industry | ||||||
| Energy | 12.48 | 8.54 | 15.67 | — | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 405,645,000 ÷ 23,005,266 = 17.63
3 Closing price as at the filing date of Texas Pacific Land Corp. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 507.46 ÷ 17.63 = 28.78
5 Click competitor name to see calculations.
The valuation metrics from 2019 to 2023 reveal a period of significant volatility followed by a stabilization of the price-to-earnings multiple. The relationship between share price appreciation and fluctuations in earnings per share has driven a notable shift in how the market valued the company over this five-year interval.
- Share Price Evolution
- An overall upward trend in share price is observed, increasing from 226.07 US$ in 2019 to a peak of 596.28 US$ in 2022. Although a moderate decline occurred in 2023 to 507.46 US$, the price remained substantially higher than the 2019 and 2020 levels.
- Earnings Per Share (EPS) Performance
- Earnings demonstrated a sharp contraction in 2020, falling to 7.57 US$ from 13.70 US$ in the previous year. A recovery phase followed, with EPS rising to 11.62 US$ in 2021 and peaking at 19.33 US$ in 2022, before experiencing a slight retraction to 17.63 US$ in 2023.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio experienced a dramatic spike in 2020, reaching 48.98. This expansion was the result of a simultaneous increase in share price and a decrease in earnings. Subsequent years show a correction and stabilization of the multiple, with the P/E ratio remaining consistent between 28.78 and 30.84 from 2021 through 2023, indicating a alignment between market price and earnings capacity after the 2020 anomaly.
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Price to Operating Profit (P/OP)
Texas Pacific Land Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 23,005,266 | 23,086,488 | 23,236,125 | 23,268,468 | 23,268,468 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in thousands) | 486,053) | 562,307) | 362,393) | 217,251) | 399,573) | |
| Operating profit per share2 | 21.13 | 24.36 | 15.60 | 9.34 | 17.17 | |
| Share price1, 3 | 507.46 | 596.28 | 337.37 | 370.62 | 226.07 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 24.02 | 24.48 | 21.63 | 39.69 | 13.16 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | 9.48 | 6.12 | 11.40 | — | — | |
| ConocoPhillips | 7.61 | 4.57 | 8.66 | — | — | |
| ExxonMobil Holdings Corp. | 7.62 | 5.65 | 9.86 | — | — | |
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 8.17 | 5.60 | 10.13 | — | — | |
| P/OP Ratio, Industry | ||||||
| Energy | 8.44 | 5.95 | 10.52 | — | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 486,053,000 ÷ 23,005,266 = 21.13
3 Closing price as at the filing date of Texas Pacific Land Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 507.46 ÷ 21.13 = 24.02
5 Click competitor name to see calculations.
Between 2019 and 2023, the share price exhibited a significant overall upward trajectory, rising from 226.07 to 507.46. This growth was accompanied by volatility in operating profit per share, which experienced a sharp contraction in 2020 before recovering to a peak in 2022 and slightly moderating in 2023.
- Price to Operating Profit (P/OP) Volatility
- The P/OP ratio demonstrated substantial fluctuation, most notably in 2020 when it surged to 39.69. This spike was driven by a divergence where the share price increased despite a decline in operating profit per share from 17.17 to 9.34, indicating a temporary expansion of the valuation multiple.
- Valuation Stabilization
- Following the 2020 peak, the P/OP ratio transitioned to a period of relative stability. From 2021 through 2023, the ratio remained within a tight corridor between 21.63 and 24.48, suggesting that the market reached a more consistent consensus on the valuation of the company's operating earnings.
- Correlation Between Profitability and Price
- A positive correlation is observable between the peak operating profit per share of 24.36 in 2022 and the peak share price of 596.28 in the same year. The subsequent moderate decrease in both metrics in 2023 maintained the P/OP ratio at 24.02, reflecting a proportional adjustment in market price relative to operational performance.
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Price to Sales (P/S)
Texas Pacific Land Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 23,005,266 | 23,086,488 | 23,236,125 | 23,268,468 | 23,268,468 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in thousands) | 631,595) | 667,422) | 450,958) | 302,554) | 490,496) | |
| Sales per share2 | 27.45 | 28.91 | 19.41 | 13.00 | 21.08 | |
| Share price1, 3 | 507.46 | 596.28 | 337.37 | 370.62 | 226.07 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 18.48 | 20.63 | 17.38 | 28.50 | 10.72 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.46 | 1.31 | 1.69 | — | — | |
| ConocoPhillips | 2.33 | 1.68 | 2.58 | — | — | |
| ExxonMobil Holdings Corp. | 1.24 | 1.12 | 1.17 | — | — | |
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.41 | 1.24 | 1.48 | — | — | |
| P/S Ratio, Industry | ||||||
| Energy | 1.46 | 1.31 | 1.52 | — | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 631,595,000 ÷ 23,005,266 = 27.45
3 Closing price as at the filing date of Texas Pacific Land Corp. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 507.46 ÷ 27.45 = 18.48
5 Click competitor name to see calculations.
An analysis of valuation multiples between 2019 and 2023 reveals significant volatility in the Price-to-Sales (P/S) ratio, primarily driven by divergent movements between equity pricing and revenue per share.
- Share Price and Sales Trends
- The share price exhibited an overall upward trajectory, increasing from 226.07 in 2019 to a peak of 596.28 in 2022, before adjusting to 507.46 in 2023. Concurrently, sales per share demonstrated a cyclical pattern, dropping sharply to 13.00 in 2020 before recovering to 28.91 by 2022 and ending the period at 27.45.
- Price-to-Sales (P/S) Ratio Volatility
- The P/S ratio experienced a substantial spike in 2020, reaching 28.50. This expansion was the result of share price appreciation occurring simultaneously with a marked decline in sales per share. Following this peak, the ratio corrected to 17.38 in 2021.
- Valuation Stabilization
- From 2021 through 2023, the P/S ratio stabilized within a range of 17.38 to 20.63. This indicates a realignment of market valuation relative to revenue generation, although the ratio remains significantly elevated compared to the 10.72 recorded in 2019.
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Price to Book Value (P/BV)
Texas Pacific Land Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 23,005,266 | 23,086,488 | 23,236,125 | 23,268,468 | 23,268,468 | |
| Selected Financial Data (US$) | ||||||
| Total equity (in thousands) | 1,043,196) | 772,887) | 651,711) | 485,184) | 512,137) | |
| Book value per share (BVPS)2 | 45.35 | 33.48 | 28.05 | 20.85 | 22.01 | |
| Share price1, 3 | 507.46 | 596.28 | 337.37 | 370.62 | 226.07 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 11.19 | 17.81 | 12.03 | 17.77 | 10.27 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | 1.78 | 1.94 | 1.89 | — | — | |
| ConocoPhillips | 2.65 | 2.75 | 2.61 | — | — | |
| ExxonMobil Holdings Corp. | 2.02 | 2.29 | 1.93 | — | — | |
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | 2.00 | 2.21 | 2.00 | — | — | |
| P/BV Ratio, Industry | ||||||
| Energy | 2.08 | 2.30 | 2.07 | — | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Total equity ÷ No. shares of common stock outstanding
= 1,043,196,000 ÷ 23,005,266 = 45.35
3 Closing price as at the filing date of Texas Pacific Land Corp. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 507.46 ÷ 45.35 = 11.19
5 Click competitor name to see calculations.
The valuation of common stock relative to book value between 2019 and 2023 is characterized by a steady increase in underlying book value juxtaposed with high volatility in market pricing. The resulting price-to-book multiples indicate a consistent and substantial premium attributed to the company's assets over the analyzed period.
- Book Value Per Share (BVPS) Trend
- A positive trajectory in book value per share is evident, increasing from 22.01 US$ in 2019 to 45.35 US$ by 2023. Following a marginal decline in 2020 to 20.85 US$, the BVPS grew consistently each year, more than doubling over the five-year span and indicating a strengthening of the company's equity base.
- Share Price Performance
- The share price experienced significant volatility, rising from 226.07 US$ in 2019 to a peak of 596.28 US$ in 2022, before concluding the period at 507.46 US$ in 2023. The overall upward trend in price suggests strong market demand, though the fluctuations indicate periodic adjustments in investor sentiment.
- Price to Book Value (P/BV) Ratio Analysis
- The P/BV ratio remained elevated throughout the period, fluctuating between a low of 10.27 in 2019 and peaks of 17.77 in 2020 and 17.81 in 2022. These high multiples suggest that the market values the company far above its accounting book value, likely reflecting the intrinsic value of assets not fully captured on the balance sheet. A notable contraction of the ratio to 11.19 occurred in 2023, which coincided with the highest recorded BVPS, indicating a normalization of the valuation premium relative to the expanded asset base.
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