Common Stock Valuation Ratios (Price Multiples)
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).
Current Valuation Ratios
Union Pacific Corp., current price multiples
| Union Pacific Corp. | FedEx Corp. | Uber Technologies Inc. | United Airlines Holdings Inc. | United Parcel Service Inc. | Transportation | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $236.28 | |||||||||
| No. shares of common stock outstanding | 597,475,610 | |||||||||
| Growth rate (g) | 22.99% | |||||||||
| Earnings per share (EPS) | $11.29 | |||||||||
| Next year expected EPS | $13.89 | |||||||||
| Operating profit per share | $16.26 | |||||||||
| Sales per share | $40.59 | |||||||||
| Book value per share (BVPS) | $28.27 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 20.92 | 13.35 | 19.87 | 8.54 | 15.25 | 17.07 | 31.35 | |||
| Price to next year expected earnings | 17.01 | 12.27 | 28.01 | 15.30 | 8.12 | 15.33 | 29.41 | |||
| Price-earnings-growth (PEG) | 0.91 | 1.52 | — | — | 0.17 | 1.50 | 4.76 | |||
| Price to operating profit (P/OP) | 14.53 | 10.40 | 69.95 | 5.28 | 10.41 | 16.12 | 25.41 | |||
| Price to sales (P/S) | 5.82 | 0.66 | 4.45 | 0.47 | 0.97 | 1.68 | 2.53 | |||
| Price to book value (P/BV) | 8.36 | 2.10 | 9.08 | 2.12 | 5.27 | 5.34 | 7.36 | |||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Union Pacific Corp., historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The data reveals several notable trends in valuation ratios over the five-year period.
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a decline from 25.57 in 2020 to a low of 17.97 in 2022, indicating that the market valuation relative to earnings decreased during this period. Subsequently, there was a partial recovery, with the ratio increasing to 23.85 in 2023 before declining again to 21.68 in 2024. Overall, the metric suggests fluctuations in market sentiment or earnings performance, with a general downward pressure from the initial 2020 level.
- Price to Operating Profit (P/OP) Ratio
- This ratio mirrors the P/E trend to some extent, decreasing from 17.46 in 2020 to 12.68 in 2022. After 2022, it climbed to 16.75 in 2023 and then slightly declined to 15.06 in 2024. The similar pattern indicates changing investor valuation of the company's operating profitability, with an overall decline from the earliest year to the most recent.
- Price to Sales (P/S) Ratio
- The P/S ratio started at 7 in 2020 and remained nearly steady at 7.08 in 2021. It then decreased significantly to 5.05 in 2022, rebounded to 6.31 in 2023, and slightly declined to 6.03 in 2024. This pattern suggests relative shifts in sales valuation, possibly due to changes in sales volume, pricing, or market conditions that affect how sales are valued compared to price.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio increased notably from 8.07 in 2020 to a peak of 10.9 in 2021. It then gradually declined each subsequent year, reaching 10.34 in 2022, 10.29 in 2023, and significantly dropping to 8.66 in 2024. The initial rise may reflect improved investor confidence or asset revaluation, while the later decline could indicate a reassessment of the company's net assets or changing risk perceptions.
In summary, all key valuation ratios experienced a downturn around 2022, followed by partial recoveries in 2023 with some decline again in 2024. This suggests a period of valuation adjustment, possibly driven by external market factors or internal performance shifts. The overall trend points to a more conservative valuation stance in the most recent year compared to the start of the period, though with some fluctuations reflecting evolving investor assessments.
Price to Earnings (P/E)
Union Pacific Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 604,286,378 | 609,777,914 | 611,872,981 | 636,898,957 | 669,829,363 | |
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | 6,747) | 6,379) | 6,998) | 6,523) | 5,349) | |
| Earnings per share (EPS)2 | 11.17 | 10.46 | 11.44 | 10.24 | 7.99 | |
| Share price1, 3 | 242.08 | 249.45 | 205.50 | 242.39 | 204.20 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 21.68 | 23.85 | 17.97 | 23.67 | 25.57 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| FedEx Corp. | 17.21 | 16.11 | 14.80 | 15.07 | 33.43 | |
| Uber Technologies Inc. | 16.83 | 89.56 | — | — | — | |
| United Airlines Holdings Inc. | 9.58 | 5.70 | 21.74 | — | — | |
| United Parcel Service Inc. | 17.05 | 18.89 | 13.27 | 14.11 | 104.33 | |
| P/E Ratio, Sector | ||||||
| Transportation | 17.26 | 24.43 | 30.10 | 22.48 | — | |
| P/E Ratio, Industry | ||||||
| Industrials | 28.42 | 24.85 | 36.06 | 35.59 | — | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 6,747,000,000 ÷ 604,286,378 = 11.17
3 Closing price as at the filing date of Union Pacific Corp. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 242.08 ÷ 11.17 = 21.68
5 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several trends regarding share price, earnings per share (EPS), and price-to-earnings (P/E) ratio.
- Share Price
- The share price experienced fluctuations without a consistent upward or downward trajectory. It increased from 204.2 US$ at the end of 2020 to 242.39 US$ in 2021, followed by a decline to 205.5 US$ in 2022. Thereafter, the share price rose again to 249.45 US$ in 2023 before a slight decrease to 242.08 US$ in 2024. Overall, the share price shows volatility but tends to recover after declines.
- Earnings per Share (EPS)
- The EPS demonstrated a generally positive trend, increasing from 7.99 US$ in 2020 to 11.44 US$ in 2022. There was a minor dip in 2023 to 10.46 US$, but it rebounded to 11.17 US$ in 2024. This pattern indicates steady earnings growth with a brief interruption, reflecting the company’s overall improving profitability over the period.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio showed a notable decline from 25.57 in 2020 to a low of 17.97 in 2022, indicating that the stock price may have been less elevated relative to earnings at that time. After 2022, the P/E ratio increased again to 23.85 in 2023 and then decreased slightly to 21.68 in 2024. This suggests changing investor sentiment or market conditions impacting how the stock’s price relates to its earnings.
In summary, the data reveals a company with increasing earnings per share, accompanied by share price volatility. The P/E ratio’s downward trend through 2022 followed by a subsequent rise reflects shifts in market valuation relative to earnings, possibly due to external factors or changes in investor expectations. The interplay between these metrics suggests that while the company’s profitability has generally strengthened, its market valuation has been subject to fluctuations over the analyzed time frame.
Price to Operating Profit (P/OP)
Union Pacific Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 604,286,378 | 609,777,914 | 611,872,981 | 636,898,957 | 669,829,363 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 9,713) | 9,082) | 9,917) | 9,338) | 7,834) | |
| Operating profit per share2 | 16.07 | 14.89 | 16.21 | 14.66 | 11.70 | |
| Share price1, 3 | 242.08 | 249.45 | 205.50 | 242.39 | 204.20 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 15.06 | 16.75 | 12.68 | 16.53 | 17.46 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| FedEx Corp. | 13.40 | 13.03 | 9.07 | 13.46 | 17.79 | |
| Uber Technologies Inc. | 59.27 | 152.26 | — | — | — | |
| United Airlines Holdings Inc. | 5.92 | 3.54 | 6.86 | — | — | |
| United Parcel Service Inc. | 11.64 | 13.86 | 11.70 | 14.20 | 18.23 | |
| P/OP Ratio, Sector | ||||||
| Transportation | 16.29 | 18.51 | 14.13 | 21.54 | 65.24 | |
| P/OP Ratio, Industry | ||||||
| Industrials | 23.03 | 20.78 | 19.86 | 22.38 | 68.31 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 9,713,000,000 ÷ 604,286,378 = 16.07
3 Closing price as at the filing date of Union Pacific Corp. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 242.08 ÷ 16.07 = 15.06
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited fluctuations over the observed period. Initially, there was a notable increase from 204.2 US$ in 2020 to 242.39 US$ in 2021, followed by a decline to 205.5 US$ in 2022. Subsequently, the share price rose again to 249.45 US$ in 2023 before experiencing a slight decrease to 242.08 US$ in 2024.
- Operating Profit per Share Trend
- The operating profit per share showed a generally upward trajectory. It increased from 11.7 US$ in 2020 to 14.66 US$ in 2021 and continued to rise to 16.21 US$ in 2022. There was a minor dip to 14.89 US$ in 2023, followed by a recovery to 16.07 US$ in 2024, indicating overall growth but with some variability.
- Price to Operating Profit Ratio (P/OP) Trend
- The P/OP ratio decreased significantly from 17.46 in 2020 to 12.68 in 2022, reflecting an improved valuation relative to operating profit per share during this period. However, this ratio increased again to 16.75 in 2023 and slightly decreased to 15.06 in 2024, suggesting fluctuations in market perceptions of the company’s operating profitability valuation.
- Overall Insights
- The data suggest a volatile but generally positive financial performance. The increase in operating profit per share over the years supports strengthening core profitability. Meanwhile, the share price and P/OP ratio variations indicate market adjustments to this profitability and possibly external factors influencing investor sentiment. The decline in the P/OP ratio until 2022 may point to improving earnings quality or undervaluation, with subsequent rises possibly related to share price dynamics or investor expectations.
Price to Sales (P/S)
Union Pacific Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 604,286,378 | 609,777,914 | 611,872,981 | 636,898,957 | 669,829,363 | |
| Selected Financial Data (US$) | ||||||
| Operating revenues (in millions) | 24,250) | 24,119) | 24,875) | 21,804) | 19,533) | |
| Sales per share2 | 40.13 | 39.55 | 40.65 | 34.23 | 29.16 | |
| Share price1, 3 | 242.08 | 249.45 | 205.50 | 242.39 | 204.20 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 6.03 | 6.31 | 5.05 | 7.08 | 7.00 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| FedEx Corp. | 0.85 | 0.71 | 0.61 | 0.94 | 0.62 | |
| Uber Technologies Inc. | 3.77 | 4.53 | 2.16 | 3.90 | 9.07 | |
| United Airlines Holdings Inc. | 0.53 | 0.28 | 0.36 | 0.63 | 1.11 | |
| United Parcel Service Inc. | 1.08 | 1.39 | 1.53 | 1.87 | 1.66 | |
| P/S Ratio, Sector | ||||||
| Transportation | 1.70 | 1.78 | 1.42 | 2.03 | 2.19 | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.29 | 2.06 | 1.80 | 2.07 | 2.14 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Operating revenues ÷ No. shares of common stock outstanding
= 24,250,000,000 ÷ 604,286,378 = 40.13
3 Closing price as at the filing date of Union Pacific Corp. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 242.08 ÷ 40.13 = 6.03
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited volatility over the period under review. It increased from $204.20 at the end of 2020 to a peak of $249.45 in 2023, before experiencing a slight decline to $242.08 in 2024. Despite this fluctuation, the overall movement shows a positive trajectory when comparing the initial and final values.
- Sales Per Share Trend
- Sales per share displayed a clear upward trend, rising consistently from $29.16 in 2020 to $40.13 in 2024. This steady increase suggests an improvement in the company's revenue generation ability relative to its share count over the five-year span.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio demonstrated some variation, starting at 7.00 in 2020 and maintaining a similar level of 7.08 in 2021. It then declined sharply to 5.05 in 2022 before partially recovering to 6.31 in 2023 and slightly decreasing to 6.03 in 2024. This indicates that the market valuation relative to sales per share fluctuated, with a notable drop in 2022 and a gradual correction thereafter.
- Overall Insights
- The financial data reveals a pattern where sales per share consistently improved, which reflects positively on operational performance or revenue growth. Meanwhile, the share price trends and P/S ratio movements suggest varying market sentiment or valuation multiples during the period. The decline in P/S ratio during 2022 despite increasing sales per share could indicate market concerns or broader economic influences affecting the stock's valuation. The partial recovery in both share price and P/S ratio in the subsequent years points to restored investor confidence or improved market conditions.
Price to Book Value (P/BV)
Union Pacific Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 604,286,378 | 609,777,914 | 611,872,981 | 636,898,957 | 669,829,363 | |
| Selected Financial Data (US$) | ||||||
| Common shareholders’ equity (in millions) | 16,890) | 14,788) | 12,163) | 14,161) | 16,958) | |
| Book value per share (BVPS)2 | 27.95 | 24.25 | 19.88 | 22.23 | 25.32 | |
| Share price1, 3 | 242.08 | 249.45 | 205.50 | 242.39 | 204.20 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 8.66 | 10.29 | 10.34 | 10.90 | 8.07 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| FedEx Corp. | 2.70 | 2.45 | 2.27 | 3.26 | 2.35 | |
| Uber Technologies Inc. | 7.70 | 15.02 | 9.36 | 4.71 | 8.24 | |
| United Airlines Holdings Inc. | 2.38 | 1.60 | 2.32 | 3.06 | 2.85 | |
| United Parcel Service Inc. | 5.90 | 7.32 | 7.75 | 12.76 | 213.26 | |
| P/BV Ratio, Sector | ||||||
| Transportation | 5.40 | 6.69 | 5.91 | 6.92 | 8.09 | |
| P/BV Ratio, Industry | ||||||
| Industrials | 6.68 | 6.85 | 5.50 | 5.44 | 5.89 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Common shareholders’ equity ÷ No. shares of common stock outstanding
= 16,890,000,000 ÷ 604,286,378 = 27.95
3 Closing price as at the filing date of Union Pacific Corp. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 242.08 ÷ 27.95 = 8.66
5 Click competitor name to see calculations.
The analysis of the annual financial data reveals several notable trends over the five-year period from 2020 to 2024.
- Share Price
- The share price experienced fluctuations throughout the years. Starting at $204.20 in 2020, it rose significantly to $242.39 in 2021 but then declined to $205.50 in 2022. Subsequently, it increased again to $249.45 in 2023 before slightly decreasing to $242.08 in 2024. Overall, the share price shows a pattern of volatility with an upward trend when comparing the start and end points.
- Book Value Per Share (BVPS)
- The book value per share displayed a declining trend from 2020 through 2022, moving from $25.32 down to $19.88. However, the trend reversed thereafter, with BVPS increasing to $24.25 in 2023 and continuing to rise to $27.95 in 2024. This suggests an initial decrease in net asset value per share, followed by recovery and growth in the latter years.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio started at 8.07 in 2020 and peaked at 10.90 in 2021, indicating that the market price was highly valued relative to book value that year. This ratio remained elevated but slightly declined to 10.34 in 2022 and 10.29 in 2023. By 2024, the ratio decreased more noticeably to 8.66, pointing to a reduced premium of share price over book value. The decline in P/BV in 2024 corresponds with the rise in BVPS and a marginal decrease in share price.
In summary, the data indicates that while the share price has demonstrated volatility, the underlying book value per share initially declined but recovered strongly in the last two years. The price-to-book ratio trends suggest that the market's valuation premium over book value was highest around 2021 and has somewhat normalized by 2024.