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).
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
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Current Valuation Ratios
United Parcel Service Inc., current price multiples
| United Parcel Service Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | Transportation | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | ||||||||||
| No. shares of common stock outstanding | ||||||||||
| Growth rate (g) | ||||||||||
| Earnings per share (EPS) | ||||||||||
| Next year expected EPS | ||||||||||
| Operating profit per share | ||||||||||
| Sales per share | ||||||||||
| Book value per share (BVPS) | ||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | ||||||||||
| Price to next year expected earnings | ||||||||||
| Price-earnings-growth (PEG) | ||||||||||
| Price to operating profit (P/OP) | ||||||||||
| Price to sales (P/S) | ||||||||||
| Price to book value (P/BV) | ||||||||||
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)
United Parcel Service Inc., historical price multiples
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio experienced a significant decrease from 104.33 in 2020 to 14.11 in 2021, indicating a sharp adjustment in market valuation relative to earnings. This ratio remained relatively stable through 2022 at 13.27, followed by an increase to 18.89 in 2023, suggesting renewed investor confidence or earnings growth expectations. In 2024, the P/E ratio slightly decreased to 17.05, reflecting a moderate correction or stabilization in the valuation.
- Price to Operating Profit (P/OP) Ratio
- This ratio showed a steady decline over the period from 18.23 in 2020 to 11.64 in 2024. After a notable drop to 14.2 in 2021 and further to 11.7 in 2022, it rose slightly to 13.86 in 2023 before decreasing again. The overall downward trend suggests improved operating profit relative to stock price or a market re-rating aligning the valuation more closely with operating performance.
- Price to Sales (P/S) Ratio
- The price to sales ratio demonstrated a downward trend, starting at 1.66 in 2020 and fluctuating modestly before reaching a low of 1.08 in 2024. This indicates that the market price per share has become less expensive relative to sales over time, potentially reflecting changes in revenue growth prospects or market valuation adjustments.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio declined dramatically from an exceptionally high 213.26 in 2020 to 12.76 in 2021, with a continued decrease to 5.9 by 2024. The sharp decline suggests a major revaluation of the company’s net asset value or book value basis, possibly due to improved asset base measurements, stronger book values, or reductions in market price over time. The steady decrease points to a normalization or correction in investor perception of the company's intrinsic asset value.
Price to Earnings (P/E)
United Parcel Service Inc., 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 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Transportation | ||||||
| P/E Ratio, Industry | ||||||
| Industrials | ||||||
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
= ÷ =
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a rising trend from 161.6 US dollars at the end of 2020 to a peak of 208.97 US dollars at the end of 2021. Following this peak, the share price decreased consistently over the subsequent three years, falling to 115.42 US dollars by the end of 2024. This indicates a considerable decline in market valuation after 2021.
- Earnings per Share (EPS)
- EPS demonstrated significant growth from 1.55 US dollars in 2020 to a high of 14.81 US dollars in 2021. Subsequently, there was a decreasing trend in EPS over the following years, dropping to 6.77 US dollars by the end of 2024. Despite this decline, EPS remained substantially higher than the 2020 level throughout the period under review.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio was extremely elevated at 104.33 in 2020, indicating a relatively high share price compared to earnings. In 2021 and 2022, the P/E ratio normalized significantly to 14.11 and 13.27 respectively, reflecting improved earnings performance relative to share price. However, in 2023 and 2024, the P/E ratio increased again to 18.89 and 17.05, suggesting that the share price decreased at a slower rate relative to earnings dilution.
- Summary
- The data reveals an initial phase of strong earnings growth and share price appreciation between 2020 and 2021, followed by a period of earnings contraction and share price decline from 2022 onward. The P/E ratio dynamics highlight an initial normalization after an overvaluation in 2020, with some revaluation occurring during the later years. Overall, the trends suggest the company experienced growth challenges and market revaluation pressures post-2021.
Price to Operating Profit (P/OP)
United Parcel Service Inc., 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 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Transportation | ||||||
| P/OP Ratio, Industry | ||||||
| Industrials | ||||||
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 profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price experienced a notable increase from $161.6 in 2020 to a peak of $208.97 in 2021. Following this peak, a consistent decline is observed over the next three years, falling to $178.46 in 2022, then to $148.64 in 2023, and further down to $115.42 in 2024. This indicates a significant downward trend in market valuation post-2021.
- Operating Profit per Share Dynamics
- Operating profit per share showed a substantial increase from $8.86 in 2020 to $14.72 in 2021, continuing to rise slightly to $15.25 in 2022. However, from 2022 onwards, the operating profit per share decreased to $10.72 in 2023 and further declined to $9.91 in 2024. This suggests a peak in operating profitability in 2022, followed by a contraction in subsequent years.
- Price-to-Operating Profit (P/OP) Ratio Analysis
- The P/OP ratio decreased significantly from 18.23 in 2020 to 14.2 in 2021 and further to 11.7 in 2022, indicating a relative increase in operating profit valuation compared to share price during this period. There was a reversal in trend in 2023 when the ratio rose to 13.86, before falling again to 11.64 in 2024. These fluctuations reflect changes in market sentiment and valuation multiples relative to operating profit performance.
- Summary Insights
- Overall, the data reveals that while operating profit per share improved substantially up to 2022, there was a subsequent reduction alongside a marked decline in share price from its peak in 2021. The P/OP ratio's volatility further underscores shifts in investor valuation perspective, with an initial compression of the ratio reflecting increased profitability, followed by mixed signals in later years. The combination of decreasing share price and contracting operating profit after 2022 may warrant attention regarding underlying operational or market challenges.
Price to Sales (P/S)
United Parcel Service Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Transportation | ||||||
| P/S Ratio, Industry | ||||||
| Industrials | ||||||
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 = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated an initial increase from $161.60 in 2020 to a peak of $208.97 in 2021. Following this peak, a consistent decline was observed over the subsequent three years, decreasing to $178.46 in 2022, $148.64 in 2023, and further to $115.42 in 2024.
- Sales Per Share Trend
- Sales per share showed an upward movement from $97.61 in 2020 to $116.84 in 2022. However, this growth plateaued and slightly reversed from 2023 onwards, settling at approximately $106.62 by 2024, indicating slowing revenue growth or possible market challenges affecting sales.
- Price to Sales Ratio (P/S) Trend
- The P/S ratio initially increased from 1.66 in 2020 to 1.87 in 2021, reflecting potentially higher market valuation relative to sales. Afterward, a steady decline was evident, with the ratio dropping to 1.53 in 2022, then 1.39 in 2023, and further to 1.08 by 2024. This trend suggests a decreasing market valuation relative to sales, possibly due to reduced investor confidence or market correction following the prior peak.
- Overall Insights
- The data reveal a peak in market valuation during 2021, followed by a downward correction in share price and valuation multiples despite relatively stable sales per share after 2022. The divergence between declining share price and plateauing sales per share implies that market expectations for growth may have diminished or that external factors affected the company's perceived value. The P/S ratio's decline underscores this adjustment in investor sentiment, indicating a more cautious outlook on the company's future revenue growth or profitability prospects.
Price to Book Value (P/BV)
United Parcel Service Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Equity for controlling interests (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Transportation | ||||||
| P/BV Ratio, Industry | ||||||
| Industrials | ||||||
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 = Equity for controlling interests ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price initially exhibited an upward trend, increasing from $161.60 at the end of 2020 to a peak of $208.97 in 2021. Subsequently, it experienced a consistent decline over the following three years, decreasing to $178.46 in 2022, $148.64 in 2023, and further down to $115.42 by the end of 2024. This pattern suggests initial investor optimism followed by diminishing market confidence or external factors negatively impacting the stock value.
- Book Value Per Share (BVPS)
- BVPS showed significant growth from a very low base of $0.76 at the end of 2020 to $16.38 in 2021, continuing to increase to $23.04 in 2022. However, after 2022, BVPS experienced a slight decline, falling to $20.30 in 2023 and marginally lower to $19.57 in 2024. This indicates improvement in the company's net asset value per share initially, followed by some diminishment or stabilization in the latter years.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio dramatically decreased from an extremely high 213.26 in 2020 to 12.76 in 2021, alongside the increase in book value and initial rise in share price. The ratio continued to decline in the following years—7.75 in 2022, 7.32 in 2023, and reaching 5.9 in 2024. This trend implies that the market valuation relative to the company's book value has been progressively compressing, which aligns with the falling share price against a relatively stabilized book value per share.