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Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

Walt Disney Co., current price multiples

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Walt Disney Co. Charter Communications Inc. Comcast Corp. Twenty-First Century Fox Inc. Media Consumer Services
Selected Financial Data
Current share price (P) $ 112.77
No. shares of common stock outstanding 1,487,242,596
Growth rate (g) 13.25%
 
Earnings per share (EPS) $ 6.04
Next year expected EPS $ 6.84
Operating profit per share $ 9.26
Sales per share $ 37.07
Book value per share (BVPS) $ 27.78
Ratios (Price Multiples)
Price to earnings (P/E) 18.68 7.66 7.19 18.68 11.01 28.28
Price to next year expected earnings 16.49 3.30 6.30 14.83 9.49 24.61
Price-earnings-growth (PEG) 1.41 0.06 0.51 0.72 0.69 1.90
Price to operating profit (P/OP) 12.18 18.47 9.08 13.22 11.64 20.44
Price to sales (P/S) 3.04 1.82 1.93 2.74 2.34 1.75
Price to book value (P/BV) 4.06 1.94 2.38 4.26 2.98 7.19

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

Otherwise, if company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Walt Disney Co., historical price multiples

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Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014 Sep 28, 2013 Sep 29, 2012
Price to earnings (P/E) 17.28 16.65 23.41 20.31 19.83 15.18
Price to operating profit (P/OP) 11.26 11.01 14.90 13.36 13.17 9.84
Price to sales (P/S) 2.81 2.81 3.74 3.12 2.70 2.04
Price to book value (P/BV) 3.76 3.61 4.41 3.39 2.68 2.17
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. Walt Disney Co.'s P/E ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
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. Walt Disney Co.'s P/OP ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
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. Walt Disney Co.'s P/S ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.
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. Walt Disney Co.'s P/BV ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Price to Earnings (P/E)

Walt Disney Co., historical P/E calculation, comparison to benchmarks

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Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014 Sep 28, 2013 Sep 29, 2012
No. shares of common stock outstanding1 1,510,312,194 1,591,460,982 1,653,177,887 1,695,710,842 1,757,279,616 1,772,122,139
Selected Financial Data (USD $)
Net income attributable to The Walt Disney Company (Disney) (in millions) 8,980  9,391  8,382  7,501  6,136  5,682 
Earnings per share (EPS)3 5.95 5.90 5.07 4.42 3.49 3.21
Share price1, 2 102.74 98.26 118.67 89.82 69.23 48.68
Ratio
P/E ratio4 17.28 16.65 23.41 20.31 19.83 15.18
Benchmarks
P/E Ratio, Competitors
Charter Communications Inc. 9.34 24.77
Comcast Corp. 8.70 20.56 17.78 18.01 21.12
Twenty-First Century Fox Inc. 17.69 17.69 7.32 17.35 10.23
P/E Ratio, Sector
Media 11.17 19.34 17.10 19.86 17.68
P/E Ratio, Industry
Consumer Services 23.72 22.94 23.82 24.38 19.34

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Walt Disney Co.'s Annual Report.

2017 Calculations

3 EPS = Net income attributable to The Walt Disney Company (Disney) ÷ No. shares of common stock outstanding
= 8,980,000,000 ÷ 1,510,312,194 = 5.95

4 P/E ratio = Share price ÷ EPS
= 102.74 ÷ 5.95 = 17.28

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. Walt Disney Co.'s P/E ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Price to Operating Profit (P/OP)

Walt Disney Co., historical P/OP calculation, comparison to benchmarks

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Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014 Sep 28, 2013 Sep 29, 2012
No. shares of common stock outstanding1 1,510,312,194 1,591,460,982 1,653,177,887 1,695,710,842 1,757,279,616 1,772,122,139
Selected Financial Data (USD $)
Operating income (in millions) 13,775  14,202  13,171  11,400  9,236  8,763 
Operating profit per share3 9.12 8.92 7.97 6.72 5.26 4.94
Share price1, 2 102.74 98.26 118.67 89.82 69.23 48.68
Ratio
P/OP ratio4 11.26 11.01 14.90 13.36 13.17 9.84
Benchmarks
P/OP Ratio, Competitors
Charter Communications Inc. 22.51 35.52 16.26 20.50 14.61
Comcast Corp. 10.98 10.61 9.07 10.12 10.62
Twenty-First Century Fox Inc. 8.37 8.59 10.30 14.27 13.51
P/OP Ratio, Sector
Media 11.81 12.02 11.61 12.25 12.09
P/OP Ratio, Industry
Consumer Services 17.15 14.94 14.41 13.89 13.77

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Walt Disney Co.'s Annual Report.

2017 Calculations

3 Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,775,000,000 ÷ 1,510,312,194 = 9.12

4 P/OP ratio = Share price ÷ Operating profit per share
= 102.74 ÷ 9.12 = 11.26

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. Walt Disney Co.'s P/OP ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Price to Sales (P/S)

Walt Disney Co., historical P/S calculation, comparison to benchmarks

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Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014 Sep 28, 2013 Sep 29, 2012
No. shares of common stock outstanding1 1,510,312,194 1,591,460,982 1,653,177,887 1,695,710,842 1,757,279,616 1,772,122,139
Selected Financial Data (USD $)
Revenues (in millions) 55,137  55,632  52,465  48,813  45,041  42,278 
Sales per share3 36.51 34.96 31.74 28.79 25.63 23.86
Share price1, 2 102.74 98.26 118.67 89.82 69.23 48.68
Ratio
P/S ratio4 2.81 2.81 3.74 3.12 2.70 2.04
Benchmarks
P/S Ratio, Competitors
Charter Communications Inc. 2.22 3.01 1.86 2.19 1.63
Comcast Corp. 2.34 2.22 1.95 2.19 2.23
Twenty-First Century Fox Inc. 1.83 1.78 2.10 2.46 2.62
P/S Ratio, Sector
Media 2.37 2.45 2.54 2.53 2.42
P/S Ratio, Industry
Consumer Services 1.47 1.30 1.28 1.17 1.15

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Walt Disney Co.'s Annual Report.

2017 Calculations

3 Sales per share = Revenues ÷ No. shares of common stock outstanding
= 55,137,000,000 ÷ 1,510,312,194 = 36.51

4 P/S ratio = Share price ÷ Sales per share
= 102.74 ÷ 36.51 = 2.81

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. Walt Disney Co.'s P/S ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Price to Book Value (P/BV)

Walt Disney Co., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014 Sep 28, 2013 Sep 29, 2012
No. shares of common stock outstanding1 1,510,312,194 1,591,460,982 1,653,177,887 1,695,710,842 1,757,279,616 1,772,122,139
Selected Financial Data (USD $)
Total Disney Shareholder's equity (in millions) 41,315  43,265  44,525  44,958  45,429  39,759 
Book value per share (BVPS)3 27.36 27.19 26.93 26.51 25.85 22.44
Share price1, 2 102.74 98.26 118.67 89.82 69.23 48.68
Ratio
P/BV ratio4 3.76 3.61 4.41 3.39 2.68 2.17
Benchmarks
P/BV Ratio, Competitors
Charter Communications Inc. 2.36 2.17 136.37 87.92
Comcast Corp. 2.88 3.31 2.78 2.86 2.84
Twenty-First Century Fox Inc. 3.32 3.57 3.53 4.50 4.27
P/BV Ratio, Sector
Media 3.02 3.12 3.69 3.48 3.10
P/BV Ratio, Industry
Consumer Services 6.03 5.14 5.26 4.41 4.01

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Walt Disney Co.'s Annual Report.

2017 Calculations

3 BVPS = Total Disney Shareholder's equity ÷ No. shares of common stock outstanding
= 41,315,000,000 ÷ 1,510,312,194 = 27.36

4 P/BV ratio = Share price ÷ BVPS
= 102.74 ÷ 27.36 = 3.76

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. Walt Disney Co.'s P/BV ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017.