Stock Analysis on Net

Time Warner Inc. (NYSE:TWX)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Time Warner Inc., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Time Warner Inc. Annual Report.


Share Price
The share price exhibited notable volatility over the observed period, beginning at $51.93 in early 2006. It increased to a peak of $64.50 in early 2007 before experiencing a considerable decline to $22.05 by early 2009, indicating a significant drop likely linked to broader market conditions or company-specific events. Following this trough, the share price showed a generally strong recovery trend, rising steadily to reach a high point of $97.06 in early 2017, before a slight decrease to $94.37 in early 2018.
Earnings Per Share (EPS)
The EPS data reveals a fluctuating trajectory, starting at $1.93 in 2006 and increasing sharply to $5.13 in 2007. However, it dropped dramatically to negative $11.21 in 2009, signaling a substantial loss during that year. Post-2009, EPS shows consistent improvement with positive growth each year, culminating in $6.73 by early 2018. This pattern reflects a recovery and strengthening of the company's profitability following the 2009 loss.
Price to Earnings (P/E) Ratio
The P/E ratio demonstrates a variable pattern corresponding to earnings and share price changes. Initially, it stands at 26.85 in early 2006, notably decreasing to 12.58 in 2007 and stabilizing around low to mid-teens in subsequent years. The P/E ratio is unavailable for early 2009 due to negative earnings per share that year. It fluctuates thereafter, reaching highs around 19.14 in 2017, indicating periods of relatively high share valuation compared to earnings, and settling at 14.03 in 2018.
Summary of Trends
The data depicts a company undergoing a challenging period around 2009, as evidenced by significant declines in share price and negative earnings. This period is followed by a sustained recovery in both market value and profitability, with consistent EPS growth from 2010 onward. The recovery in share price after 2009 aligns with improved earnings, suggesting restored investor confidence. The P/E ratio variations reflect adjustments in market valuation, influenced by earnings performance and broader market conditions.

Comparison to Competitors

Time Warner Inc., P/E, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Media & Entertainment)

Time Warner Inc., P/E, long-term trends, comparison to sector (media & entertainment)

Microsoft Excel

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Communication Services)

Time Warner Inc., P/E, long-term trends, comparison to industry (communication services)

Microsoft Excel

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).