Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
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- Income Statement
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- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Historical Valuation Ratios (Summary)
Time Warner Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a general increasing trend from early 2014 through 2015, rising from 13.86 to a peak of 20.1 by March 31, 2015. Subsequently, it declines steadily through 2015 into 2016, reaching a low of 13.41 by March 31, 2018. Notably, there is a brief resurgence in the latter part of 2016 and 2017, where the ratio climbs back to approximately 18.7–19.1 before falling again in early 2018.
- Price to Operating Profit (P/OP) Ratio
- This ratio also increases from 8.09 in the first quarter of 2014 to a high of 12.33 in March 2015, indicating rising market valuations relative to operating profit. It then decreases and stabilizes around the 7.67 to 10.07 range during the remainder of 2015 and into early 2016. A moderate upward shift occurs between late 2016 and 2017, approaching 10.67, but the ratio declines slightly by the first quarter of 2018 to around 9.57.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrates a steady upward progression from 1.98 in March 2014 to 2.55 in early 2015, indicating improved market valuations against sales. The ratio dips through the second half of 2015, falling to a low of 1.87, then recovers steadily throughout 2016 and 2017, reaching a peak near 2.65. The ratio decreases modestly again in early 2018 to around 2.32, suggesting some fluctuation around a generally higher valuation baseline compared to early periods.
- Price to Book Value (P/BV) Ratio
- There is a clear upward trend in this metric from 1.95 in the first quarter of 2014 to a peak of 3.09 by December 2016. This reflects increasing market valuation relative to book value over the period. Following the peak, the ratio declines gradually through 2017 and into early 2018, ending at approximately 2.46. The trend indicates a revaluation downward after reaching a significant high, though the ratio remains elevated compared to early 2014 levels.
Overall, the financial ratios indicate that market valuations relative to earnings, operating profits, sales, and book value generally increased through 2014 and early 2015, reaching their peaks during this period. Subsequently, there is evidence of a correction or normalization from late 2015 onwards, with some ratios exhibiting stabilization or moderate fluctuations around mid-2016 and 2017. By early 2018, most valuation ratios show a decline from their peaks but remain above early 2014 figures, suggesting a higher baseline market valuation compared to the beginning of the observed timeframe.
Price to Earnings (P/E)
Time Warner Inc., historical P/E calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income attributable to Time Warner Inc. shareholders (in millions) | |||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2018 Calculation
EPS
= (Net income attributable to Time Warner Inc. shareholdersQ1 2018
+ Net income attributable to Time Warner Inc. shareholdersQ4 2017
+ Net income attributable to Time Warner Inc. shareholdersQ3 2017
+ Net income attributable to Time Warner Inc. shareholdersQ2 2017)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Time Warner Inc. Quarterly or Annual Report.
4 Q1 2018 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited an overall upward trend from March 2014 to March 2018, despite some fluctuations. Starting at $66.46 in March 2014, the price increased and peaked at $85.45 in March 2015. Afterward, it experienced a decline through December 2015, reaching $66.66. From 2016 onward, the share price climbed steadily, achieving its highest value of $102.52 in June 2017, before slightly receding to $93.67 by March 2018.
Earnings per share (EPS) showed a generally positive trajectory over the periods assessed. EPS started at $4.79 in March 2014, with slight fluctuations in 2014 and early 2015. Beginning in 2016, EPS gained momentum, peaking at $6.99 in March 2018. Although minor declines occurred in some quarters—for example, in December 2016 and September 2017—the overall direction was upward, indicating improving profitability per share.
The price-to-earnings (P/E) ratio varied over time, reflecting changing investor expectations relative to earnings. Initially, the ratio moved from 13.86 in March 2014 to a high of 20.1 in March 2015, indicating increased investor valuation compared to earnings. It then declined to a low of 13.41 by March 2018, after fluctuating during the intervening years. Notably, the P/E ratio peaked again in December 2016 at 19.14, concurrent with a relatively high share price and EPS.
- Summary of Financial Trends
-
The overall increase in share price alongside an upward trend in EPS suggests improved company performance and growing investor confidence during the period analyzed. Volatility in the P/E ratio points to changing market perceptions of the company's growth prospects and earnings quality.
- Key Observations
-
The share price recovery after a dip in late 2015 indicates resilience and possibly favorable market developments or operational enhancements starting in 2016. EPS growth, particularly strong after 2015, demonstrates enhancing profitability and could be attributed to effective management or market conditions. The fluctuating P/E ratio suggests periods where the market reassessed the company’s growth potential relative to its earnings.
- Implications
-
The data encourages a perspective that, despite short-term volatility, the company showed solid financial improvement over the four-year span. Investors appeared willing to pay a higher share price relative to earnings initially but became more conservative by early 2018. This could imply maturation in earnings growth or evolving market dynamics affecting valuation multiples.
Price to Operating Profit (P/OP)
Time Warner Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Operating income (in millions) | |||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2018 Calculation
Operating profit per share
= (Operating incomeQ1 2018
+ Operating incomeQ4 2017
+ Operating incomeQ3 2017
+ Operating incomeQ2 2017)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Time Warner Inc. Quarterly or Annual Report.
4 Q1 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- Over the reported periods, the share price exhibited notable fluctuations. From March 2014 to December 2014, there was a consistent upward movement, rising from $66.46 to $82.42. This was followed by a peak around March 2015 at $85.45, after which the share price declined sharply to $66.66 by December 2015. Subsequently, a recovery phase occurred, with prices increasing steadily to reach a high of $102.52 in June 2017. The latter part of the timeline saw a slight decrease, with share prices declining to $93.67 by March 2018. Overall, the share price demonstrated cyclical behavior with periods of growth and correction.
- Operating Profit Per Share (OPPS) Trends
- The operating profit per share maintained relatively stable and modest growth across the reporting quarters. Starting at $8.21 in March 2014, the OPPS saw minor fluctuations but generally trended upwards, culminating at $10.16 in December 2017. There was a minor dip in March 2015 to $6.93; however, this was followed by a recovery and continued growth. The data suggests consistent operational performance improvement with limited volatility compared to the share price.
- Price to Operating Profit Ratio (P/OP) Analysis
- The price to operating profit ratio displayed significant variability reflecting the interplay between share price and operating profit per share. Initially, this ratio increased from 8.09 in March 2014 to a peak of 12.33 in March 2015, indicating that the share price was increasing faster than operating profit or that valuations were becoming more expensive. Following this peak, the ratio declined to a low of 7.67 by December 2015, then generally rose again, oscillating between 8 and 10.67 up to March 2018. The upward and downward trends in this ratio suggest fluctuating market valuation sentiment relative to operational earnings performance.
- Insights
- The data reflects a company experiencing phases of market valuation shifts independent of operational income, as indicated by the differing volatility of share price and operating profit per share. The consistent growth in operating profit per share suggests a solid underlying operational performance, while the share price and P/OP ratio reveal market re-pricing periods potentially influenced by external factors or investor sentiment. The periods of elevated P/OP ratio may denote times of high market optimism, whereas reductions possibly reflect market corrections or increased risk perceptions.
Price to Sales (P/S)
Time Warner Inc., historical P/S calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Revenues (in millions) | |||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2018 Calculation
Sales per share
= (RevenuesQ1 2018
+ RevenuesQ4 2017
+ RevenuesQ3 2017
+ RevenuesQ2 2017)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Time Warner Inc. Quarterly or Annual Report.
4 Q1 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a general upward trajectory from March 2014 through June 2017, increasing from $66.46 to a peak above $102. However, fluctuations were notable within this period, with prices falling significantly in the latter part of 2015 before resuming an upward trend. After June 2017, the share price experienced a gradual decline, decreasing to approximately $93.67 by March 2018.
- Sales per Share Trends
- Sales per share showed a consistent and steady increase over the entire period. Starting at $33.62 in March 2014, sales per share rose incrementally each quarter, reaching $40.31 by March 2018. This trend suggests sustained growth in underlying sales performance despite fluctuations in other metrics.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio mirrored certain movements observed in the share price, reflecting market valuation relative to sales. Initially starting at 1.98 in March 2014, the ratio increased to a peak of approximately 2.65 in June 2017. The ratio exhibited some volatility, notably declining in latter 2015 to below 2.0 before rising again. After the peak in mid-2017, the P/S ratio trended downward to a level slightly above 2.3 by March 2018, aligning with declining share prices despite increasing sales per share.
- Overall Insights
- Over the analyzed timeframe, sales per share showed steady growth, indicating improvement in the company’s revenue-generating ability on a per-share basis. Share price and P/S ratio movements, while generally positive in the medium term, displayed volatility, suggesting fluctuating market sentiment or external factors influencing valuation. The divergence between rising sales per share and declining share price and P/S ratio after mid-2017 may point to market concerns regarding future growth prospects or other operational factors not reflected in sales alone.
Price to Book Value (P/BV)
Time Warner Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Total Time Warner Inc. shareholders’ equity (in millions) | |||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2018 Calculation
BVPS = Total Time Warner Inc. shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Time Warner Inc. Quarterly or Annual Report.
4 Q1 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The share price of the company exhibited an overall upward trend from March 2014 to March 2018, starting at $66.46 and reaching a peak near $102.52 in June 2017 before slightly declining to $93.67 by March 2018. The increase was not linear, with some periods showing declines or stabilization, notably a dip in the price throughout late 2015.
Book value per share (BVPS) showed a steady and gradual increase during the same period. It started from $34.06 in March 2014, slightly declined by the end of 2014, then consistently rose quarter by quarter to reach $38.10 by March 2018. The progression indicates a consistent build-up in the company's net value attributable to shareholders.
The price-to-book value ratio (P/BV) fluctuated notably over the observed quarters. Initially, the ratio increased from 1.95 in March 2014, peaking around 3.09 in December 2016, then declined to 2.46 by March 2018. This indicates that the market valuation relative to the company's net asset value per share increased initially, suggesting rising investor confidence or expectations, before moderating in the last quarters.
- Summary of Trends
- The share price shows growth with some volatility, peaking in mid-2017 and cooling off slightly thereafter.
- Book value per share advances steadily and consistently, reflecting ongoing strengthening of shareholder equity.
- The P/BV ratio initially rises sharply, implying increasing market optimism or premium over book value, followed by a retracement indicating a normalization of market perceptions.
Overall, the data suggests an improving fundamental position as reflected in steady BVPS growth, accompanied by fluctuating market sentiment translated in share price and valuation multiples. The moderation in price multiples towards the end of the period could imply a more cautious investor stance or a realignment of market expectations relative to company value.