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
e.l.f. Beauty, Inc., current price multiples
| e.l.f. Beauty, Inc. | Procter & Gamble Co. | Consumer Staples | |||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Current share price (P) | $160.83 | ||||
| No. shares of common stock outstanding | 56,388,228 | ||||
| Growth rate (g) | 9.88% | ||||
| Earnings per share (EPS) | $2.26 | ||||
| Next year expected EPS | $2.49 | ||||
| Operating profit per share | $2.65 | ||||
| Sales per share | $18.16 | ||||
| Book value per share (BVPS) | $11.40 | ||||
| Valuation Ratios (Price Multiples) | |||||
| Price to earnings (P/E) | 71.04 | 24.58 | 40.14 | ||
| Price to next year expected earnings | 64.65 | 21.95 | 36.11 | ||
| Price-earnings-growth (PEG) | 7.19 | 2.05 | 3.60 | ||
| Price to operating profit (P/OP) | 60.59 | 19.61 | 28.59 | ||
| Price to sales (P/S) | 8.86 | 4.45 | 2.27 | ||
| Price to book value (P/BV) | 14.11 | 7.16 | 12.86 | ||
Based on: 10-K (reporting date: 2024-03-31).
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)
e.l.f. Beauty, Inc., historical price multiples
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
An analysis of the valuation multiples reveals a significant expansion in market pricing relative to fundamental financial metrics over the five-year period ending March 31, 2024. The data indicates a transition from conservative valuation levels to a high-growth premium, characterized by increased volatility in earnings-based multiples and a steady escalation in sales and book value multiples.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both earnings-based ratios exhibited extreme volatility, peaking in 2021 with the P/E reaching 236.37 and P/OP reaching 156.71. Following a correction in 2022, these ratios experienced a secondary increase, ending the period at 80.96 and 69.05 respectively. This pattern suggests that while the market valuation remains significantly higher than the 2020 baseline, it is subject to substantial fluctuations relative to bottom-line profitability.
- Price to Sales (P/S)
- A consistent upward trend is observed in the revenue multiple, which climbed from 2.93 in 2020 to 10.09 in 2024. A particularly sharp acceleration occurred between March 31, 2022, and March 31, 2023, where the ratio increased from 3.28 to 9.69. This indicates a substantial shift in investor sentiment, with the market paying a significantly higher premium for each dollar of revenue.
- Price to Book Value (P/BV)
- The book value multiple demonstrates the most aggressive growth trajectory, expanding from 3.42 in 2020 to 16.09 in 2024. Similar to the P/S ratio, a dramatic increase was recorded after 2022, as the ratio rose from 4.12 to 13.65 in 2023 and further to 16.09 in 2024. This trend reflects a market valuation that is increasingly decoupled from the company's net asset value, pointing toward high expectations for future growth and intangible value.
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Price to Earnings (P/E)
e.l.f. Beauty, Inc., historical P/E calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 55,939,080 | 53,867,072 | 52,272,764 | 51,649,915 | 50,009,051 | |
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | 127,663) | 61,530) | 21,770) | 6,232) | 17,884) | |
| Earnings per share (EPS)2 | 2.28 | 1.14 | 0.42 | 0.12 | 0.36 | |
| Share price1, 3 | 184.77 | 104.15 | 24.63 | 28.52 | 16.57 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 80.96 | 91.18 | 59.14 | 236.37 | 46.33 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 27.11 | 25.47 | 23.91 | 24.46 | — | |
| P/E Ratio, Industry | ||||||
| Consumer Staples | 29.43 | 26.62 | 25.35 | 26.07 | — | |
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 127,663,000 ÷ 55,939,080 = 2.28
3 Closing price as at the filing date of e.l.f. Beauty, Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 184.77 ÷ 2.28 = 80.96
5 Click competitor name to see calculations.
The financial data from March 31, 2020, to March 31, 2024, indicates a period of substantial growth in both market valuation and profitability, characterized by a significant expansion in the share price and a recovery in earnings performance.
- Share Price Trajectory
- A strong upward trend is observed in the share price, which climbed from 16.57 USD in 2020 to 184.77 USD in 2024. The growth accelerated sharply after March 31, 2022, reflecting a rapid increase in market capitalization over the final two years of the period.
- Earnings per Share (EPS) Analysis
- EPS exhibited a notable decline in 2021, dropping to 0.12 USD from 0.36 USD in 2020. This was followed by a consistent and aggressive recovery, with earnings rising to 0.42 USD in 2022, 1.14 USD in 2023, and peaking at 2.28 USD in 2024. This trajectory demonstrates a significant improvement in the company's ability to generate profit per share.
- Price-to-Earnings (P/E) Ratio Interpretation
- The P/E ratio showed extreme volatility, reaching a peak of 236.37 in 2021. This anomaly was driven by the contraction in EPS occurring while the share price continued to rise. Following this peak, the ratio moderated but remained elevated, ending at 80.96 in 2024. The sustained high P/E ratio suggests that the market maintains high growth expectations, valuing the company at a significant premium relative to its current earnings.
In summary, while earnings have grown substantially since 2021, the share price has increased at a faster rate. This has resulted in a valuation multiple that, although lower than the 2021 peak, remains significantly higher than the 2020 baseline, signaling strong investor confidence in future earnings potential.
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Price to Operating Profit (P/OP)
e.l.f. Beauty, Inc., historical P/OP calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 55,939,080 | 53,867,072 | 52,272,764 | 51,649,915 | 50,009,051 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in thousands) | 149,678) | 68,143) | 29,770) | 9,400) | 29,950) | |
| Operating profit per share2 | 2.68 | 1.27 | 0.57 | 0.18 | 0.60 | |
| Share price1, 3 | 184.77 | 104.15 | 24.63 | 28.52 | 16.57 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 69.05 | 82.33 | 43.25 | 156.71 | 27.67 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 21.33 | 20.19 | 19.41 | 19.08 | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Staples | 20.96 | 19.82 | 18.28 | 19.01 | — | |
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 149,678,000 ÷ 55,939,080 = 2.68
3 Closing price as at the filing date of e.l.f. Beauty, Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 184.77 ÷ 2.68 = 69.05
5 Click competitor name to see calculations.
Between March 31, 2020, and March 31, 2024, a significant appreciation in market valuation is observed, characterized by a substantial increase in share price and a recovery followed by an expansion of operating profitability.
- Share Price Trajectory
- The share price exhibited a strong upward trend, rising from 16.57 USD in 2020 to 184.77 USD in 2024. The most aggressive growth phase occurred between 2022 and 2024, during which the price surged from 24.63 USD to 184.77 USD.
- Operating Profit Per Share Evolution
- Operating profit per share experienced a sharp decline from 0.60 USD in 2020 to 0.18 USD in 2021. This was followed by a period of consistent and accelerating growth, with the value increasing to 0.57 USD in 2022, 1.27 USD in 2023, and reaching 2.68 USD by March 31, 2024.
- Price to Operating Profit (P/OP) Dynamics
- The P/OP ratio demonstrated high volatility throughout the period. An extreme peak of 156.71 was recorded in 2021, driven by the convergence of an increasing share price and a significant contraction in operating profit per share. The ratio normalized to 43.25 in 2022 as profitability recovered. A secondary expansion to 82.33 occurred in 2023, followed by a moderation to 69.05 in 2024, indicating that the growth in operating profit began to keep pace with the rising market valuation.
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Price to Sales (P/S)
e.l.f. Beauty, Inc., historical P/S calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 55,939,080 | 53,867,072 | 52,272,764 | 51,649,915 | 50,009,051 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in thousands) | 1,023,932) | 578,844) | 392,155) | 318,110) | 282,851) | |
| Sales per share2 | 18.30 | 10.75 | 7.50 | 6.16 | 5.66 | |
| Share price1, 3 | 184.77 | 104.15 | 24.63 | 28.52 | 16.57 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 10.09 | 9.69 | 3.28 | 4.63 | 2.93 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 4.71 | 4.46 | 4.31 | 4.51 | — | |
| P/S Ratio, Industry | ||||||
| Consumer Staples | 1.67 | 1.45 | 1.54 | 1.61 | — | |
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 1,023,932,000 ÷ 55,939,080 = 18.30
3 Closing price as at the filing date of e.l.f. Beauty, Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 184.77 ÷ 18.30 = 10.09
5 Click competitor name to see calculations.
The valuation metrics indicate a period of significant expansion in market valuation and fundamental growth between March 31, 2020, and March 31, 2024. The most prominent trend is the aggressive escalation of the Price-to-Sales (P/S) ratio, which suggests a substantial increase in the premium investors are willing to pay for each dollar of revenue.
- Share Price Trajectory
- A rapid upward trend in share price is observed, moving from 16.57 US$ in 2020 to 184.77 US$ by 2024. While there was a slight contraction between 2021 and 2022, the subsequent growth was exponential, with the price increasing more than fourfold between March 2022 and March 2023 alone.
- Sales per Share Growth
- Revenue performance per share demonstrated consistent year-over-year growth throughout the five-year period. Sales per share rose from 5.66 US$ in 2020 to 18.30 US$ in 2024. The growth rate accelerated notably in the final two years, with the most significant jump occurring between 2023 and 2024, where sales per share increased by approximately 70%.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio evolved from a moderate 2.93 in 2020 to a high of 10.09 in 2024. A period of relative stability was noted between 2020 and 2022, with the ratio fluctuating between 2.93 and 4.63. However, a valuation pivot occurred in 2023, as the ratio surged to 9.69, maintaining this elevated level into 2024. This suggests that the increase in share price significantly outpaced the growth in sales per share, reflecting heightened market expectations for future earnings or a shift in the company's perceived risk and growth profile.
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Price to Book Value (P/BV)
e.l.f. Beauty, Inc., historical P/BV calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 55,939,080 | 53,867,072 | 52,272,764 | 51,649,915 | 50,009,051 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | 642,572) | 411,017) | 312,429) | 269,646) | 242,171) | |
| Book value per share (BVPS)2 | 11.49 | 7.63 | 5.98 | 5.22 | 4.84 | |
| Share price1, 3 | 184.77 | 104.15 | 24.63 | 28.52 | 16.57 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 16.09 | 13.65 | 4.12 | 5.46 | 3.42 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Procter & Gamble Co. | 7.87 | 7.83 | 7.42 | 7.40 | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Staples | 9.43 | 8.14 | 8.11 | 8.15 | — | |
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 642,572,000 ÷ 55,939,080 = 11.49
3 Closing price as at the filing date of e.l.f. Beauty, Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 184.77 ÷ 11.49 = 16.09
5 Click competitor name to see calculations.
A significant expansion in the Price to Book Value (P/BV) ratio is observed between March 31, 2020, and March 31, 2024. The ratio increased from 3.42 to 16.09, indicating a substantial shift in market valuation relative to the company's accounting book value.
- Share Price Dynamics
- The share price exhibited exponential growth, particularly after March 31, 2022. The price rose from 24.63 in 2022 to 184.77 in 2024. This rapid acceleration in market price is the primary driver behind the escalating P/BV ratio.
- Book Value per Share (BVPS) Progression
- BVPS demonstrated a consistent and linear upward trend, increasing from 4.84 in 2020 to 11.49 in 2024. While the book value grew steadily, the rate of increase was significantly lower than that of the share price.
- P/BV Ratio Interpretation
- The P/BV ratio remained relatively stable, fluctuating between 3.42 and 5.46 from 2020 to 2022. A sharp divergence occurred in 2023, with the ratio jumping to 13.65 and further increasing to 16.09 by 2024. This suggests that the market is attributing a high premium to the company's intangible assets, brand equity, or future earnings potential rather than its tangible net asset base.
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