Union Pacific Corp. (NYSE:UNP)

An analysis of the valuation ratios from March 2022 through September 2026 reveals a cyclical pattern in earnings, profit, and sales multiples, contrasted by a general long-term compression in the book value multiple. Most valuation metrics experienced a notable trough in late 2022 before entering a period of recovery and subsequent volatility.

Price to Earnings (P/E) and Price to Operating Profit (P/OP)

The P/E and P/OP ratios exhibit highly correlated movements. Both metrics declined sharply in 2022, with the P/E reaching a minimum of 16.21 and P/OP reaching 11.53 by September 30, 2022. A recovery phase followed, leading to a peak in December 2023. After a period of relative stability through 2024 and 2025, both ratios climbed again in 2026, with the P/E peaking at 24.67 and P/OP at 17.78 in June 2026, before moderating slightly toward the end of the period.

Price to Sales (P/S)

The P/S ratio followed a similar trajectory to the earnings-based multiples. It dropped from an initial 6.77 in March 2022 to a low of 4.69 in September 2022. The ratio remained largely within the 5.3 to 6.3 range throughout 2023, 2024, and 2025. A significant upward movement occurred in 2026, reaching a period high of 7.12 in June 2026, suggesting an increase in the market's valuation of the company's revenue stream relative to its stock price.

Price to Book Value (P/BV)

Unlike the other valuation metrics, the P/BV ratio demonstrates a distinct downward trend over the analyzed timeframe. Starting at a high of 12.90 in March 2022, the ratio consistently declined, reaching its lowest point of 7.54 in September 2025. While a brief recovery to 8.75 was observed in June 2026, the ratio ended the period at 8.05, indicating a significant contraction in the premium paid over the book value of the company compared to early 2022 levels.

Overall, the data suggests that while the market's valuation of the company's income and sales capacity has remained resilient and cyclical, the valuation relative to its equity base has undergone a sustained correction.

The valuation metrics for Union Pacific Corp. from March 2022 through September 2026 exhibit a pattern of cyclical volatility, primarily driven by fluctuations in share price rather than significant shifts in underlying earnings. The Price-to-Earnings (P/E) ratio demonstrates a lack of a linear trend, instead moving through phases of contraction and expansion.

Share Price Volatility

The share price experienced a notable decline in 2022, reaching a period low of 186.45 USD in September 2022. Following this trough, the price entered a recovery phase, characterized by intermittent peaks and troughs, eventually reaching a maximum of 304.33 USD in June 2026. The overall trajectory from 2024 onwards shows a sustained upward trend in market valuation.

Earnings Per Share (EPS) Stability

Earnings per share remained relatively stable throughout the analyzed period, oscillating within a tight range between 10.44 USD and 12.82 USD. A period of slight contraction occurred between September 2023 and March 2024, followed by a consistent growth trend that began in June 2024 and continued through September 2026, peaking at 12.82 USD.

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

The P/E ratio mirrors the volatility of the share price due to the relative stability of the EPS. An initial contraction is observed from March 2022 (22.53) to September 2022 (16.21), representing the lowest valuation multiple in the series. A subsequent expansion occurred throughout 2023, peaking at 23.85 in December 2023. A second contraction phase followed, with the ratio declining to 18.51 by September 2025. The period concluded with a sharp valuation increase, peaking at 24.67 in June 2026 before moderating to 23.25 in September 2026.

The analysis indicates that the company's market valuation is highly sensitive to price movements. The divergence between the steady growth in EPS and the fluctuating P/E ratio suggests that market sentiment and external valuation drivers exerted more influence on the stock price than organic earnings growth during this timeframe.

The valuation of the common stock, as measured by the Price to Operating Profit (P/OP) ratio, exhibited significant fluctuations between March 2022 and September 2026. While operating profit per share remained relatively resilient, the variability in the P/OP ratio was primarily driven by volatility in the share price rather than fundamental shifts in operational earnings.

Share Price Volatility

A notable decline in share price occurred during 2022, falling from a high of 244.40 in March to a low of 186.45 by September. This was followed by a period of recovery and stabilization through 2023 and 2024. A substantial upward trend emerged in the latter half of 2025 and first half of 2026, with the share price reaching a peak of 304.33 in June 2026 before settling at 298.09 in September 2026.

Operating Profit per Share Trends

Operating profit per share demonstrated a high degree of stability, oscillating within a narrow range between 14.89 and 17.78. After a slight downward trajectory that bottomed out in December 2023, a consistent growth pattern was observed from March 2024 through September 2026, indicating steady operational performance improvement over the final three years of the period.

Price to Operating Profit (P/OP) Ratio Analysis

The P/OP ratio experienced two distinct cycles of contraction and expansion. The first contraction occurred in 2022, reaching a minimum of 11.53 in September. A recovery phase led the ratio to 16.75 by December 2023. A second period of compression occurred between March 2024 and September 2025, with the ratio dipping to 13.09. The final period saw a sharp expansion, peaking at 17.78 in June 2026, reflecting an increase in the premium the market was willing to pay relative to operating profits.

In summary, the divergence between the steady growth of operating profits and the more erratic movements of the share price suggests that the P/OP ratio was influenced heavily by market sentiment and external pricing factors. The trend concludes with both operating profits and the valuation ratio at levels significantly higher than the 2022 troughs.

The Price to Sales (P/S) ratio for Union Pacific Corp. exhibited significant volatility between March 2022 and September 2026, characterized by an initial contraction, a period of stabilization, and a subsequent expansion. While sales per share demonstrated a consistent long-term upward trajectory, the P/S ratio was primarily driven by fluctuations in the equity market valuation of the shares.

Price to Sales (P/S) Ratio Trends

A notable decline occurred in 2022, with the ratio falling from 6.77 in March to a period low of 4.69 by September. This contraction was followed by a recovery phase throughout 2023, where the ratio fluctuated between 4.93 and 6.31. From March 2024 through September 2025, the ratio remained relatively stable, oscillating within a narrow band between 5.31 and 6.17. A final peak was observed in June 2026, reaching 7.12, before moderating to 6.72 by the end of the analyzed period.

Sales per Share Performance

Revenue efficiency per share showed a steady and linear growth pattern. Starting at 36.09 US$ in March 2022, sales per share increased to 44.36 US$ by September 2026. This represents a consistent expansion of the underlying revenue base, providing a stable denominator for the valuation ratio and indicating sustained operational growth regardless of share price volatility.

Share Price Influence

The share price acted as the primary driver of P/S ratio variance. The price experienced a significant dip in late 2022, reaching 186.45 US$, which correlated with the lowest P/S ratio of 4.69. A strong bullish trend emerged between December 2025 and June 2026, with the price ascending from 252.62 US$ to a peak of 304.33 US$. This surge in market valuation outpaced the growth in sales per share, resulting in the expansion of the P/S ratio to its highest point of 7.12.

Correlation Analysis

The divergence between the linear growth of sales per share and the non-linear movements of the share price indicates that the P/S ratio is more reflective of investor sentiment and market multiples than operational revenue shifts. The increase in the ratio toward the end of the period suggests a higher market premium being attributed to each dollar of revenue generated.

The valuation metrics exhibit a clear divergence between the steady growth of equity per share and the volatility of the market price, resulting in a sustained compression of the Price to Book Value (P/BV) ratio over the analyzed period.

Book Value per Share (BVPS) Trends

A consistent long-term upward trajectory is observed in the BVPS, which rose from 18.94 in March 2022 to 37.05 by September 2026. This represents a substantial expansion of the net asset value per share. Aside from a marginal decline in the first quarter of 2025, the growth remained steady, indicating a consistent increase in the company's retained equity.

Share Price Volatility

The market price demonstrated significant fluctuations. After an initial decline from 244.40 in March 2022 to a low of 186.45 in September 2022, the price entered a period of moderate volatility between 2023 and 2024. A strong bullish trend emerged in 2025 and 2026, with the price reaching a peak of 304.33 in June 2026 before stabilizing near 298.09 by the end of the period.

P/BV Ratio Compression

The P/BV ratio experienced a significant overall decline, falling from 12.90 in March 2022 to 8.05 in September 2026. The ratio transitioned from double-digit valuations to a stabilized single-digit range starting in 2024, where it largely fluctuated between 7.54 and 8.75. This compression indicates that the growth in book value outperformed the growth in share price over the long term, leading to a lower valuation multiple relative to the company's accounting equity.