Union Pacific Corp. (NYSE:UNP)

The analysis of Union Pacific Corp.'s key valuation ratios over multiple quarters reveals distinct trends and fluctuations across the periods from March 2021 to September 2025.

Price to Earnings (P/E) Ratio

The P/E ratio exhibited a generally declining trend from 27.76 in March 2021 to a low of 16.21 in September 2022, suggesting a contraction in valuation relative to earnings during this interval. After this low, the ratio experienced an upward correction, peaking at 23.85 by December 2023. Thereafter, the P/E ratio stabilized mostly within the low twenties, ending at 18.51 in September 2025. This pattern implies an initial investor reevaluation leading to a more conservative earnings multiple, followed by partial recovery and subsequent relative stability.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio followed a similar overall trajectory as the P/E ratio but with some variations in magnitude. Starting at 18.84 in March 2021, it decreased steadily to 11.53 by September 2022. Subsequently, the ratio rebounded to 16.75 by December 2023 before settling between approximately 13 and 16 through 2025. This pattern indicates investors' shifting perceptions of operating profitability value, initially lowering the multiple before a moderate recovery and consistent valuation range thereafter.

Price to Sales (P/S) Ratio

The P/S ratio demonstrated a smoother downward trend from 7.5 in March 2021 to a trough of 4.69 in September 2022, reflecting a decreasing valuation relative to sales revenue over time. A rebound phase followed, with the ratio peaking around 6.31 at the end of 2023. Post 2023, the ratio modestly fluctuated between about 5.3 and 6.0, indicating a relatively stable valuation on a sales basis during the subsequent periods.

Price to Book Value (P/BV) Ratio

The P/BV ratio showed considerable volatility compared to other ratios. After an initial rise from 8.91 in March 2021 to 12.90 in March 2022, it declined sharply to below 9.00 by September 2024. Minor fluctuations followed, and the ratio reached approximately 7.54 by September 2025, its lowest point in the observed timeframe. This volatility may suggest changing investor confidence in the company's net asset value or shifts in book valuation components over time.

In summary, the valuation multiples reveal an initial period of contraction in investor valuation metrics across earnings, operating profit, and sales through mid to late 2022, followed by moderate recoveries through late 2023. Subsequently, the ratios tend to stabilize at levels lower than early 2021 peaks, indicating a recalibrated valuation benchmark. The P/BV ratio's higher volatility relative to other metrics underlines some uncertainty or changing fundamentals tied to the company's net book value over these years.

The financial data over multiple quarters reveals several notable trends in share price, earnings per share (EPS), and price-to-earnings (P/E) ratio.

Share Price

The share price exhibited fluctuations throughout the periods under review. From March 2021 to December 2021, there was a general increase from approximately $218 to $242. In 2022, the price showed a declining trend, dropping notably to around $186 in September before slightly recovering to $205 by year-end. The year 2023 displayed volatility, with prices rising to $249 in December but fluctuating significantly in other quarters. Early 2024 showed a mild decline, with prices ranging mostly between $230 and $243, and a downward adjustment was observed towards the end of the period in 2025, with prices stabilizing around $220.

Earnings Per Share (EPS)

EPS demonstrated a consistent upward trend over the entire period. Starting at $7.85 in March 2021, EPS increased steadily, surpassing $10 by the end of 2021 and continuing its upward trajectory into 2025. There were minor fluctuations but no significant declines, indicating steady growth in earnings per share, reaching approximately $11.89 by September 2025.

Price-to-Earnings (P/E) Ratio

The P/E ratio showed a declining trend from early 2021, starting at 27.76 and decreasing to as low as approximately 16.21 in September 2022, reflecting a period where share prices declined while earnings continued to rise. After this trough, the P/E ratio rose again to about 23.85 by December 2023, indicating that share prices recovered somewhat in relation to earnings. From 2024 onward, the P/E ratio tended to decline gradually, stabilizing around the 18-22 range, suggesting a moderation in market valuation relative to earnings.

Overall, while the share price experienced variability, often inversely related to EPS growth, the consistent increase in earnings per share underscores solid underlying financial performance. The P/E ratio's movements indicate shifting investor sentiment and market valuation adjustments over time. The declining P/E ratio in the latter periods, despite EPS growth, might suggest cautious market expectations or recalibration of valuation multiples.

Share Price Trend

The share price exhibited noticeable fluctuations over the observed periods. Initially, from March 2021 to December 2021, there was a consistent upward trend, rising from about $218 to $242, indicating positive market sentiment. However, in 2022, the share price saw a decline, dropping to approximately $186 by September, followed by a moderate recovery towards the end of the year to around $205. In 2023, the price experienced volatility, initially decreasing, then rising to about $249 by December. In 2024, the price stabilized somewhat in the range of $230 to $243, but it then declined gradually in 2025, fluctuating near the $215 to $220 range.

Operating Profit per Share (OPPS)

Operating profit per share showed a steady and generally upward trend throughout the entire period. Beginning at $11.57 in March 2021, OPPS increased consistently, reaching values above $16 by 2025. Notably, even during periods of price volatility, OPPS maintained a stable growth pattern, demonstrating overall improvement in operational profitability per share across the analyzed quarters.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio trend reflected the inverse relationship between share price and operating profit. Early on, it declined from 18.84 in March 2021 to a low near 11.53 in September 2022, indicating increasing operational profit relative to share price or decreasing valuation multiples. Subsequently, there was a partial rebound in the ratio, reaching around 16.75 by December 2023, then fluctuating mildly between 13 and 16 through 2024 and 2025. The ratio’s movement suggests periods where the market valuation either compressed or expanded relative to the operational earnings.

Overall Insights

Overall, the data reflects a company with improving operational profitability as evidenced by the rising operating profit per share. Despite this, the share price shows higher volatility and does not consistently align with the upward trend in operating profit. The P/OP ratio’s fluctuations suggest changing market perceptions or external factors impacting valuation, including periods of both undervaluation and premium relative to profit levels. These dynamics highlight a scenario where operational fundamentals strengthened steadily, while market valuation exhibited more cyclical movements.

The financial data over the quarters reveals several notable trends in the share price, sales per share, and the price-to-sales (P/S) ratio.

Share Price

The share price experienced an overall fluctuating trend between March 2021 and September 2025. Initially, there was a rise from approximately $218 in early 2021 to a peak close to $244 by March 2022. This was followed by a marked decline to around $186 by September 2022. Subsequently, the price displayed volatility but generally increased to near $249 by December 2023. From early 2024 to late 2025, the share price again showed a downward adjustment followed by some stabilization, fluctuating within the $215 to $243 range but ending near $220 in the third quarter of 2025. Overall, the share price reflects a cyclical pattern with periods of both growth and contraction.

Sales Per Share

Sales per share showed a consistent upward trend from March 2021 through the entire period. Starting at $29.06, sales per share rose steadily each quarter, reaching over $41 by September 2025. Notably, the pace of increase was strong in the earlier years but appeared to stabilize somewhat from 2023 onwards, fluctuating narrowly around the $39.5 to $41.3 range. This suggests sustained growth in sales efficiency or revenue generation per share despite some volatility in share price.

Price-to-Sales (P/S) Ratio

The P/S ratio displayed a downward trend initially, moving from a relatively high 7.5 in early 2021 down to a low of about 4.69 by September 2022. This decline corresponds with the period where share price decreased while sales per share were rising, indicating the market valuation relative to sales was becoming more conservative. Post-September 2022, the P/S ratio showed signs of recovery, reaching approximately 6.31 by December 2023, but did not return to the initial high levels. Between 2024 and late 2025, the ratio fluctuated moderately between 5.3 and 6.2, reflecting ongoing adjustment of market valuation relative to underlying sales performance.

In summary, the company exhibited robust sales growth per share throughout the period, while the share price and the P/S ratio showed more volatility. The initial decline in the P/S ratio following share price drops and rising sales suggests market reticence or revaluation of growth prospects during that time. The recovering P/S ratio after 2022 indicates improved market sentiment or valuation alignment with sales performance. The most recent data points indicate a more stabilized market valuation relative to sales, albeit at levels lower than the initial peak in early 2021.

The share price exhibited noticeable fluctuations over the period analyzed. Starting from approximately $218 at the beginning of 2021, the share price reached a peak near $244 early in 2022 before declining to a low around $186 by late 2022. Subsequently, it experienced partial recovery, surpassing $249 by the end of 2023. The price then oscillated moderately, ending near $220 in the third quarter of 2025. This pattern suggests volatility with periods of both decline and recovery, indicating varying market sentiment and possible external influences affecting the stock valuation.

The book value per share (BVPS) showed a general upward trend throughout the period. Initial values near $24.5 in early 2021 declined somewhat in the first half of 2022, dropping below $19 at one point. From late 2022 onwards, BVPS increased consistently, reaching around $29 by the third quarter of 2025. This steady growth indicates an improvement in the company's net asset value on a per-share basis, reflecting possibly enhanced asset management or retained earnings accumulation.

The price-to-book value (P/BV) ratio demonstrated a declining trend over the analyzed intervals. The ratio started at about 8.9 times in early 2021, peaked near 12.9 times in the first quarter of 2022, and then started a gradual decrease, falling to approximately 7.5 times by the third quarter of 2025. The downward trend in P/BV, despite share price volatility, aligns with the increase in BVPS, indicating that the market price, although fluctuating, became relatively less expensive compared to the book value over time. This could suggest increased investor confidence in the fundamental value of the company or a market adjustment reflecting risk perceptions and growth expectations.