Microsoft Excel LibreOffice Calc

United Technologies Corp. (UTX)


Common Stock Valuation Ratios (Price Multiples)

Beginner level


Current Valuation Ratios

United Technologies Corp., current price multiples

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United Technologies Corp. Boeing Co. General Dynamics Corp. Lockheed Martin Corp. Northrop Grumman Corp. Raytheon Co. Aerospace & Defense Industrials
Selected Financial Data
Current share price (P) $138.38
No. shares of common stock outstanding 865,308,981
Growth rate (g) 10.54%
 
Earnings per share (EPS) $6.40
Next year expected EPS $7.07
Operating profit per share $10.36
Sales per share $89.04
Book value per share (BVPS) $48.28
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 21.63 14.26 18.14 24.93 16.68 18.72 28.33
Price to next year expected earnings 19.56 12.06 9.31 20.19 14.59 15.20 26.08
Price-earnings-growth (PEG) 2.05 0.78 0.19 1.06 1.16 0.81 3.29
Price to operating profit (P/OP) 13.36 10.69 13.23 14.12 11.68 13.93 13.89
Price to sales (P/S) 1.55 2.25 1.26 1.89 1.66 1.91 1.80 1.95
Price to book value (P/BV) 2.87 3.66 36.15 6.35 4.56 7.91 6.40

Based on: 10-K (filing date: 2020-02-06).

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 Technologies Corp., historical price multiples

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 24.41 19.74 21.97 17.55 9.31
Price to operating profit (P/OP) 15.07 12.16 11.53 10.86 9.71
Price to sales (P/S) 1.75 1.56 1.67 1.55 1.26
Price to book value (P/BV) 3.24 2.71 3.38 3.22 2.59

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. United Technologies Corp.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. United Technologies Corp.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. United Technologies Corp.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. United Technologies Corp.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Price to Earnings (P/E)

United Technologies Corp., historical P/E calculation, comparison to benchmarks

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 865,308,981 861,748,797 799,778,295 805,861,740 836,432,010
Selected Financial Data (US$)
Net income attributable to common shareowners (in millions) 5,537  5,269  4,552  5,055  7,608 
Earnings per share (EPS)2 6.40 6.11 5.69 6.27 9.10
Share price1, 3 156.20 120.72 125.03 110.09 84.66
Valuation Ratio
P/E ratio4 24.41 19.74 21.97 17.55 9.31
Benchmarks
P/E Ratio, Competitors5
Boeing Co. 21.87 24.68 20.50 14.89
General Dynamics Corp. 15.48 14.95 21.37 18.75 13.88
Lockheed Martin Corp. 19.87 16.88 48.70 14.14 18.36
Northrop Grumman Corp. 28.70 14.48 29.23 18.21 17.15
Raytheon Co. 19.14 17.56 30.30 20.13 18.25
P/E Ratio, Sector
Aerospace & Defense 18.70 26.83 17.86 13.97
P/E Ratio, Industry
Industrials 28.09 28.48 22.75 23.39

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income attributable to common shareowners ÷ No. shares of common stock outstanding
= 5,537,000,000 ÷ 865,308,981 = 6.40

3 Closing price as at the filing date of United Technologies Corp.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 156.20 ÷ 6.40 = 24.41

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. United Technologies Corp.’s P/E ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Operating Profit (P/OP)

United Technologies Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 865,308,981 861,748,797 799,778,295 805,861,740 836,432,010
Selected Financial Data (US$)
Operating profit (in millions) 8,966  8,553  8,672  8,172  7,291 
Operating profit per share2 10.36 9.93 10.84 10.14 8.72
Share price1, 3 156.20 120.72 125.03 110.09 84.66
Valuation Ratio
P/OP ratio4 15.07 12.16 11.53 10.86 9.71
Benchmarks
P/OP Ratio, Competitors5
Boeing Co. 19.08 19.69 17.20 10.36
General Dynamics Corp. 11.61 11.22 14.90 12.86 9.85
Lockheed Martin Corp. 14.49 11.62 16.47 13.51 12.17
Northrop Grumman Corp. 16.26 12.37 17.85 12.55 11.10
Raytheon Co. 13.40 11.25 18.48 13.74 12.56
P/OP Ratio, Sector
Aerospace & Defense 13.92 16.33 13.33 10.75
P/OP Ratio, Industry
Industrials 13.78 15.57 15.55 12.60

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 8,966,000,000 ÷ 865,308,981 = 10.36

3 Closing price as at the filing date of United Technologies Corp.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 156.20 ÷ 10.36 = 15.07

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. United Technologies Corp.’s P/OP ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Sales (P/S)

United Technologies Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 865,308,981 861,748,797 799,778,295 805,861,740 836,432,010
Selected Financial Data (US$)
Net sales (in millions) 77,046  66,501  59,837  57,244  56,098 
Sales per share2 89.04 77.17 74.82 71.03 67.07
Share price1, 3 156.20 120.72 125.03 110.09 84.66
Valuation Ratio
P/S ratio4 1.75 1.56 1.67 1.55 1.26
Benchmarks
P/S Ratio, Competitors5
Boeing Co. 2.34 2.26 2.17 1.06 0.80
General Dynamics Corp. 1.37 1.38 2.01 1.77 1.31
Lockheed Martin Corp. 2.07 1.58 1.91 1.59 1.43
Northrop Grumman Corp. 1.91 1.55 2.28 1.63 1.45
Raytheon Co. 2.19 1.89 2.42 1.85 1.63
P/S Ratio, Sector
Aerospace & Defense 1.80 2.03 1.45 1.18
P/S Ratio, Industry
Industrials 1.94 2.13 1.99 1.72

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 77,046,000,000 ÷ 865,308,981 = 89.04

3 Closing price as at the filing date of United Technologies Corp.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 156.20 ÷ 89.04 = 1.75

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. United Technologies Corp.’s P/S ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Book Value (P/BV)

United Technologies Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 865,308,981 861,748,797 799,778,295 805,861,740 836,432,010
Selected Financial Data (US$)
Shareowners’ equity (in millions) 41,774  38,446  29,610  27,579  27,358 
Book value per share (BVPS)2 48.28 44.61 37.02 34.22 32.71
Share price1, 3 156.20 120.72 125.03 110.09 84.66
Valuation Ratio
P/BV ratio4 3.24 2.71 3.38 3.22 2.59
Benchmarks
P/BV Ratio, Competitors5
Boeing Co. 674.83 569.92 122.80 12.17
General Dynamics Corp. 3.97 4.26 5.44 5.05 3.83
Lockheed Martin Corp. 39.60 61.11 49.61 21.37
Northrop Grumman Corp. 7.32 5.71 8.36 7.62 6.18
Raytheon Co. 5.23 4.45 6.16 4.42 3.74
P/BV Ratio, Sector
Aerospace & Defense 7.91 10.09 7.19 5.18
P/BV Ratio, Industry
Industrials 6.35 6.01 5.41 4.16

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Shareowners’ equity ÷ No. shares of common stock outstanding
= 41,774,000,000 ÷ 865,308,981 = 48.28

3 Closing price as at the filing date of United Technologies Corp.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 156.20 ÷ 48.28 = 3.24

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. United Technologies Corp.’s P/BV ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.