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
United States Steel Corp., current price multiples
| United States Steel Corp. | Freeport-McMoRan Inc. | Materials | |||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Current share price (P) | $24.67 | ||||
| No. shares of common stock outstanding | 222,963,794 | ||||
| Growth rate (g) | 12.60% | ||||
| Earnings per share (EPS) | $11.32 | ||||
| Next year expected EPS | $12.75 | ||||
| Operating profit per share | $14.17 | ||||
| Sales per share | $94.48 | ||||
| Book value per share (BVPS) | $45.83 | ||||
| Valuation Ratios (Price Multiples) | |||||
| Price to earnings (P/E) | 2.18 | 38.72 | 42.03 | ||
| Price to next year expected earnings | 1.94 | 34.82 | 38.05 | ||
| Price-earnings-growth (PEG) | 0.17 | 3.46 | 4.01 | ||
| Price to operating profit (P/OP) | 1.74 | 13.09 | 26.28 | ||
| Price to sales (P/S) | 0.26 | 3.29 | 5.17 | ||
| Price to book value (P/BV) | 0.54 | 4.51 | 6.90 | ||
Based on: 10-K (reporting date: 2022-12-31).
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 States Steel Corp., historical price multiples
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The valuation multiples from 2018 to 2022 exhibit significant volatility, reflecting fluctuations in market sentiment and financial performance. Across all metrics, the stock consistently traded at relatively low multiples, with notable troughs and peaks during the analyzed period.
- Earnings and Operating Profit Multiples
- The Price to Earnings (P/E) and Price to Operating Profit (P/OP) ratios demonstrate a closely aligned trajectory. Both ratios decreased significantly between 2018 and 2021, with the P/E falling from 3.56 to 1.48 and the P/OP falling from 3.53 to 1.25. A partial recovery occurred in 2022, as the P/E rose to 2.70 and the P/OP increased to 2.15, although both metrics remained below 2018 levels.
- Revenue Valuation
- The Price to Sales (P/S) ratio experienced instability, reaching a low of 0.12 in 2019 before peaking at 0.44 in 2020. For the subsequent two years, the ratio stabilized, settling at 0.30 in 2021 and 0.32 in 2022, indicating a more consistent relationship between share price and top-line revenue.
- Asset-Based Valuation
- The Price to Book Value (P/BV) ratio fluctuated considerably throughout the period. After a sharp decline to 0.37 in 2019, the ratio rose to 1.14 in 2020, which represents the only instance in the period where the company was valued above its book value. Subsequently, the ratio declined and remained stable below 1.0, ending 2022 at 0.67, suggesting the company continued to trade at a discount to its net asset value.
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Price to Earnings (P/E)
United States Steel Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 226,603,781 | 260,930,638 | 262,471,855 | 170,047,076 | 173,222,678 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (loss) attributable to United States Steel Corporation (in millions) | 2,524) | 4,174) | (1,165) | (630) | 1,115) | |
| Earnings per share (EPS)2 | 11.14 | 16.00 | -4.44 | -3.70 | 6.44 | |
| Share price1, 3 | 30.05 | 23.68 | 16.50 | 8.79 | 22.92 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 2.70 | 1.48 | — | — | 3.56 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Freeport-McMoRan Inc. | 17.45 | 14.75 | — | — | — | |
| P/E Ratio, Industry | ||||||
| Materials | 30.05 | 28.21 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net earnings (loss) attributable to United States Steel Corporation ÷ No. shares of common stock outstanding
= 2,524,000,000 ÷ 226,603,781 = 11.14
3 Closing price as at the filing date of United States Steel Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 30.05 ÷ 11.14 = 2.70
5 Click competitor name to see calculations.
The financial trajectory from 2018 to 2022 is characterized by significant volatility in both profitability and market valuation. A period of severe contraction in 2019 and 2020 was followed by a robust recovery in both share price and earnings per share during the final two years of the period.
- Share Price Trend
- A substantial decline in market value occurred between 2018 and 2019, with the share price dropping from 22.92 US$ to 8.79 US$. This was followed by a consistent recovery phase, with values rising to 16.50 US$ in 2020, 23.68 US$ in 2021, and reaching a period peak of 30.05 US$ by December 31, 2022.
- Earnings Per Share (EPS) Performance
- Earnings transitioned from a positive 6.44 US$ in 2018 to negative territory for two consecutive years, recording losses of -3.70 US$ in 2019 and -4.44 US$ in 2020. A sharp reversal in profitability was observed in 2021, where EPS surged to 16.00 US$, before moderating to 11.14 US$ in 2022.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio was unavailable during 2019 and 2020 due to the absence of positive earnings. In years where the ratio was calculable, it remained notably low, shifting from 3.56 in 2018 to a low of 1.48 in 2021, and subsequently increasing to 2.70 in 2022. The persistence of these low multiples suggests a conservative market valuation relative to earnings, which is often indicative of a cyclical business profile.
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Price to Operating Profit (P/OP)
United States Steel Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 226,603,781 | 260,930,638 | 262,471,855 | 170,047,076 | 173,222,678 | |
| Selected Financial Data (US$) | ||||||
| Earnings (loss) before interest and income taxes (in millions) | 3,160) | 4,946) | (1,075) | (230) | 1,124) | |
| Operating profit per share2 | 13.95 | 18.96 | -4.10 | -1.35 | 6.49 | |
| Share price1, 3 | 30.05 | 23.68 | 16.50 | 8.79 | 22.92 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 2.15 | 1.25 | — | — | 3.53 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Freeport-McMoRan Inc. | 8.60 | 7.59 | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Materials | 18.79 | 17.73 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Earnings (loss) before interest and income taxes ÷ No. shares of common stock outstanding
= 3,160,000,000 ÷ 226,603,781 = 13.95
3 Closing price as at the filing date of United States Steel Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 30.05 ÷ 13.95 = 2.15
5 Click competitor name to see calculations.
The valuation metrics for United States Steel Corp. reveal a period of significant volatility followed by a recovery in both market price and operational profitability between 2018 and 2022.
- Share Price Trends
- A sharp contraction in market value occurred between 2018 and 2019, with the share price falling from $22.92 to $8.79. Subsequently, a consistent upward trajectory was observed, with the price recovering to $16.50 in 2020 and reaching a period peak of $30.05 by the end of 2022.
- Operating Profitability
- Operating profit per share experienced a severe downturn, shifting from a positive $6.49 in 2018 to negative values in 2019 and 2020, with the deficit reaching $4.10 per share in 2020. A substantial reversal took place in 2021, as operating profit per share surged to $18.96, before moderating to $13.95 in 2022.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio was unavailable during 2019 and 2020 due to the absence of positive operating profits. In 2021, the ratio was recorded at 1.25, indicating a low valuation multiple relative to the significant spike in earnings. By 2022, the ratio increased to 2.15, reflecting an expansion in the multiple as the share price continued to climb despite a slight decrease in operating profit per share.
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Price to Sales (P/S)
United States Steel Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 226,603,781 | 260,930,638 | 262,471,855 | 170,047,076 | 173,222,678 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 21,065) | 20,275) | 9,741) | 12,937) | 14,178) | |
| Sales per share2 | 92.96 | 77.70 | 37.11 | 76.08 | 81.85 | |
| Share price1, 3 | 30.05 | 23.68 | 16.50 | 8.79 | 22.92 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.32 | 0.30 | 0.44 | 0.12 | 0.28 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Freeport-McMoRan Inc. | 2.66 | 2.78 | — | — | — | |
| P/S Ratio, Industry | ||||||
| Materials | 3.70 | 3.83 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 21,065,000,000 ÷ 226,603,781 = 92.96
3 Closing price as at the filing date of United States Steel Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 30.05 ÷ 92.96 = 0.32
5 Click competitor name to see calculations.
The financial data from 2018 to 2022 reveals a period of significant volatility in both market valuation and operational revenue, followed by a consistent recovery phase. The relationship between the share price and sales per share fluctuates, reflecting shifts in market sentiment and fundamental performance.
- Share Price Trends
- A sharp decline is observed in 2019, where the share price dropped from US$ 22.92 to US$ 8.79. Following this low, a sustained upward trajectory occurred over the subsequent three years, with the price ascending to US$ 16.50 in 2020, US$ 23.68 in 2021, and reaching a five-year peak of US$ 30.05 by December 31, 2022.
- Sales per Share Dynamics
- Operational revenue per share remained relatively stable between 2018 and 2019 before experiencing a severe contraction in 2020, falling to US$ 37.11. A robust recovery followed this trough, with sales per share rebounding to US$ 77.70 in 2021 and further increasing to US$ 92.96 in 2022, representing the highest revenue level within the analyzed period.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio exhibited substantial volatility, reaching a period low of 0.12 in 2019 and a period high of 0.44 in 2020. The peak in 2020 is particularly notable as it resulted from a sharp decrease in sales per share occurring simultaneously with a recovering share price, indicating a market valuation that anticipated recovery ahead of actual revenue growth. For the years 2021 and 2022, the ratio stabilized between 0.30 and 0.32, suggesting a more consistent correlation between market capitalization and top-line performance.
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Price to Book Value (P/BV)
United States Steel Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 226,603,781 | 260,930,638 | 262,471,855 | 170,047,076 | 173,222,678 | |
| Selected Financial Data (US$) | ||||||
| Total United States Steel Corporation stockholders’ equity (in millions) | 10,218) | 9,010) | 3,786) | 4,092) | 4,202) | |
| Book value per share (BVPS)2 | 45.09 | 34.53 | 14.42 | 24.06 | 24.26 | |
| Share price1, 3 | 30.05 | 23.68 | 16.50 | 8.79 | 22.92 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 0.67 | 0.69 | 1.14 | 0.37 | 0.94 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Freeport-McMoRan Inc. | 3.89 | 4.54 | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Materials | 4.93 | 4.66 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Total United States Steel Corporation stockholders’ equity ÷ No. shares of common stock outstanding
= 10,218,000,000 ÷ 226,603,781 = 45.09
3 Closing price as at the filing date of United States Steel Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 30.05 ÷ 45.09 = 0.67
5 Click competitor name to see calculations.
The analysis of price-to-book value (P/BV) ratios from 2018 to 2022 reveals a period of significant volatility in both market valuation and net asset value per share. Although the share price exhibited a recovery trend following a low in 2019, the P/BV ratio remained predominantly below 1.0 for the majority of the period, indicating that the equity was largely traded at a discount to its accounting book value.
- Book Value Per Share (BVPS) Trends
- BVPS experienced a notable contraction in 2020, falling to 14.42 USD. This was followed by a period of aggressive growth, with the value rising to 34.53 USD in 2021 and further increasing to 45.09 USD by December 31, 2022. This trajectory indicates a substantial strengthening of the company's net asset position relative to outstanding shares toward the end of the analyzed period.
- Share Price Dynamics
- The market price of the common stock demonstrated a V-shaped recovery. After a decline from 22.92 USD in 2018 to a low of 8.79 USD in 2019, the price ascended steadily, reaching a peak of 30.05 USD by the end of 2022.
- P/BV Ratio Volatility and Valuation
- The P/BV ratio fluctuated significantly, reaching a period low of 0.37 in 2019 and a peak of 1.14 in 2020. By 2022, the ratio settled at 0.67. The fact that the P/BV ratio decreased between 2020 and 2022, despite a rising share price, is attributed to the book value per share growing at a faster rate than the market price of the stock.
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