Time Warner Inc. (NYSE:TWX)

Price to Earnings Ratio (P/E)

The Price to Earnings ratio exhibits fluctuations throughout the analyzed period. It started at 15.65 in the earliest year, rose to a peak of 19.14 in the fourth year, and then decreased to 14.03 by the final year. This indicates variability in market valuation relative to earnings, with the highest market optimism in the fourth year and a subsequent moderation.

Price to Operating Profit Ratio (P/OP)

This ratio shows an initial increase from 8.74 to 11.46 in the second year, followed by a considerable decline to 7.67 in the third year. It then recovers somewhat to 9.96 and later slightly declines to 9.29. The trend suggests an unstable market perception of operating profit value, with notable volatility after the second year.

Price to Sales Ratio (P/S)

The Price to Sales ratio mirrors a similar volatile pattern, increasing from 1.94 to 2.5 initially, then dropping to 1.87 in the third year, and rising again to 2.56 before a slight decline to 2.35. This indicates the market's fluctuating valuation of sales revenue, with noteworthy peaks in the second and fourth years.

Price to Book Value Ratio (P/BV)

The Price to Book Value ratio increased from 1.93 to 2.8 in the second year and then declined to 2.23 in the third year. It peaked at 3.09 in the fourth year before falling to 2.59 in the final year. The pattern reflects considerable variations in market valuation relative to the company's book value, with the highest valuation observed in the fourth year followed by a decrease.

Share Price Trend

The share price demonstrated notable fluctuations over the five-year period. Initially, there was a significant increase from $64.69 in 2013 to $82.42 in 2014. However, in 2015, the share price declined to $66.66, reflecting a correction. This was followed by a substantial rise reaching a peak of $97.06 in 2016, before a slight decrease to $94.37 in 2017. Overall, the share price exhibited growth but with evident volatility.

Earnings Per Share (EPS) Trend

Earnings per share showed a consistent upward trajectory throughout the period. Starting at $4.13 in 2013, EPS increased each year, reaching $6.73 by the end of 2017. The growth was steady with moderate increments from 2013 to 2016, followed by a more pronounced increase in 2017, indicating improving profitability or earnings capacity.

Price-to-Earnings (P/E) Ratio Trend

The P/E ratio varied considerably over the years, reflecting changes in market valuation relative to earnings. Beginning at 15.65 in 2013, it rose to 17.89 in 2014 before dropping to 13.74 in 2015, indicating a more attractive valuation relative to earnings that year. The ratio peaked again at 19.14 in 2016, suggesting higher market optimism or expectations, then decreased to 14.03 in 2017, which could imply a reversion towards a more conservative valuation despite rising earnings.

Overall Insights

The company experienced increasing earnings alongside fluctuating market valuation, as reflected by the share price and P/E ratio. The share price volatility coupled with P/E ratio changes suggests shifts in investor sentiment and market conditions. The continuous EPS growth signals strengthening financial performance, while the P/E ratio adjustments may indicate evolving risk perceptions or future growth expectations among investors.

The analysis of the financial data reveals distinct trends in the share price, operating profit per share, and the price-to-operating profit ratio over the five-year period examined.

Share Price

The share price exhibited fluctuations throughout the period. Initially, there was an increase from 64.69 US$ in 2013 to 82.42 US$ in 2014, followed by a decline to 66.66 US$ in 2015. Subsequently, the price rose sharply to a peak of 97.06 US$ in 2016 before slightly decreasing to 94.37 US$ in 2017. Overall, the share price demonstrated a general upward trend with a notable peak in 2016.

Operating Profit per Share

Operating profit per share showed a consistent upward trajectory over the years. Starting at 7.40 US$ in 2013, it marginally decreased to 7.19 US$ in 2014 but then increased steadily through 2015 to 2017, reaching 10.16 US$ by the end of the period. This indicates an improvement in operating profitability on a per-share basis, suggesting enhanced operational efficiency or revenue growth relative to the number of shares outstanding.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio was variable, beginning at 8.74 in 2013 and rising to 11.46 in 2014, indicating that the share price increased disproportionately relative to operating profit per share that year. In 2015, the ratio dropped significantly to 7.67, reflecting a more favorable valuation or a relative decrease in market price compared to earnings. It then increased again to 9.96 in 2016 and decreased slightly to 9.29 in 2017. These fluctuations suggest changing market perceptions of the company's valuation pressure relative to operating profit across the time frame.

Share Price

The share price demonstrated notable volatility over the five-year period. It increased from $64.69 in 2013 to a peak of $82.42 in 2014, followed by a decline to $66.66 in 2015. Subsequently, it experienced a significant rise to $97.06 in 2016 before slightly decreasing to $94.37 in 2017. Overall, the trend indicates substantial growth with fluctuations, culminating in a higher market valuation by the end of the period compared to the beginning.

Sales Per Share

Sales per share showed a steady upward trajectory across the years. Beginning at $33.38 in 2013, it slightly dipped to $32.94 in 2014, then consistently increased each year, reaching $40.10 by 2017. This suggests improving revenue generation on a per-share basis, reflecting enhanced operational performance or growth in sales volume attributable to each share.

Price-to-Sales (P/S) Ratio

The P/S ratio fluctuated throughout the period, indicating varying market valuations relative to the company’s sales. Starting at 1.94 in 2013, it peaked at 2.50 in 2014, dropped to 1.87 in 2015, and then rose again to 2.56 in 2016 before slightly declining to 2.35 in 2017. These dynamics imply shifting investor sentiment or changes in market expectations regarding the company’s sales performance and growth prospects.

The analysis of the financial data over the five-year period reveals several notable trends and fluctuations.

Share Price

The share price exhibited variability throughout the period. It increased from $64.69 in 2013 to a peak of $97.06 in 2016, reflecting significant growth. However, there was a notable dip in 2015 to $66.66, followed by recovery in subsequent years. The overall trend indicates a general upward movement with some volatility.

Book Value per Share (BVPS)

BVPS showed relatively moderate changes compared to share price. It decreased from $33.50 in 2013 to $29.47 in 2014, remaining almost stable in 2015 at $29.89. From 2015 onwards, it displayed a gradual increase, reaching $36.39 by the end of 2017. This suggests a steady improvement in the company’s net asset value per share during the later years.

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

The P/BV ratio followed the fluctuations in share price, varying from 1.93 in 2013 to a high of 3.09 in 2016. It reached its peak in 2016, indicating that the market price significantly exceeded the book value per share at that time. The ratio dropped to 2.59 in 2017 but remained elevated compared to the initial year. This indicates that the market maintained a relatively high valuation of the company’s equity in relation to its book value.

In summary, the share price experienced considerable volatility, peaking in 2016 before slightly declining. The book value per share showed a recovery and growth phase after 2014. The P/BV ratio mirrored the share price movements, indicating changing market sentiment and valuation multiples over the period. Overall, the data shows a company with fluctuating market valuation amid improving fundamental net asset value per share in the latter years.