Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
Paying user area
Try for free
Align Technology Inc. pages available for free this week:
- Statement of Comprehensive Income
- Cash Flow Statement
- Analysis of Solvency Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Align Technology Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Historical Valuation Ratios (Summary)
Align Technology Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio was not available before March 31, 2019, after which it started at 51.76 and exhibited significant volatility. It peaked at 98.33 on March 31, 2021, marking the highest valuation relative to earnings during the observed period. After this peak, the ratio generally declined, reaching 27.67 by September 30, 2022. However, it increased again to 88.07 by September 30, 2023, before dropping sharply to 41.68 at the end of the dataset. This pattern suggests fluctuating market sentiment and changes in earnings expectations over time.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio also started reporting on March 31, 2019, with a value of 44.40. It experienced a surge through 2020, reaching a maximum of 115.91 on September 30, 2020, and maintaining high levels into December 31, 2020. Subsequently, the ratio consistently decreased to the lowest value of 18.82 by September 30, 2022, indicating improved operating profitability relative to price during that period. Following that, the ratio rose again to 49.24 on September 30, 2023, then declined to 25.87 at the latest date, reflecting renewed variations in operating performance or market valuation.
- Price to Sales (P/S) Ratio
- The P/S ratio exhibited a similar trend of volatility, starting at 10.53 in March 2019, peaking at 18.15 on September 30, 2020. After this peak, it demonstrated a downward trajectory toward 3.66 by September 30, 2022, the lowest point recorded, indicating possible improvements in sales revenue or decreased market valuation. After this trough, the ratio increased moderately, reaching 7.40 on September 30, 2023, before dropping sharply to 3.97 at the end of the period.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio was available from the first observed period, starting at 18.14 on March 31, 2018. It fluctuated over the years, generally declining from 20.76 at the start of 2019 to a low of 3.83 on September 30, 2022, indicating a decrease in market price relative to book value. There were brief recoveries, such as the rise to 16.53 on June 30, 2021, but the overall long-term pattern suggests a downward adjustment in investor valuation relative to the company's net asset base. The ratio settled at 3.98 by September 30, 2023.
- Overall Observations
- Across all four valuation metrics, there is a noticeable pattern of high ratios through 2020 and early 2021, followed by a general decline into 2022, reaching notable lows in the second half of 2022. This trend could reflect changing market perceptions, profitability adjustments, or broader economic factors affecting valuation multiples. A partial recovery occurred in 2023, with valuation multiples rising but not uniformly returning to prior highs. The fluctuations suggest sensitivity to evolving financial performance and investor sentiment over the observed periods.
Price to Earnings (P/E)
Align Technology Inc., historical P/E calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Net income (loss) (in thousands) | ||||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
EPS
= (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the observed periods.
- Share Price Trend
- The share price exhibited significant volatility from March 2018 through September 2023. Initially, the price rose sharply from $255.14 in March 2018 to a peak of $708.01 in June 2021. This was followed by a marked decline, dropping to $180.93 by September 2022. Subsequently, a modest recovery occurred, with the price reaching $361.44 in June 2023 before decreasing again to $197.44 in September 2023. The overall trend suggests periods of strong investor confidence, notably in 2020 and early 2021, contrasted by sharp corrections in late 2021 and 2022.
- Earnings Per Share (EPS) Evolution
- EPS data becomes available starting from March 2019, showing a steady range in the earlier periods, between 4.7 and 5.62. A significant spike occurs in the periods from March 2020 to December 2020, with EPS values rising dramatically to a range between 21.59 and 23.98. Following this surge, EPS normalized to single-digit values across 2021 to 2023, fluctuating between 4.1 and 9.8. This pattern indicates an exceptional earnings event or accounting adjustment around 2020, followed by a return to more typical profitability levels thereafter.
- Price-to-Earnings (P/E) Ratio Variability
- The P/E ratio, available from March 2019 onward, showcases considerable variability. Early on, ratios ranged from about 38 to 69, reflecting moderate to high market expectations relative to earnings. In 2020, concurrent with the EPS spike, the P/E ratio dropped sharply, with a low of 8.7 in March 2020, indicating that the stock price was low relative to earnings at that time. Afterward, the ratio increased again, peaking at 98.33 in March 2021, suggesting heightened market valuation despite normalized earnings. Subsequent quarters reveal a downward trend in P/E, aligning with falling share prices and more stable earnings, though increased volatility is evident towards late 2022 and 2023.
In summary, the data reflect a period of strong earnings performance in 2020 that temporarily altered valuation metrics, followed by normalization of earnings and increased share price volatility. The fluctuations in P/E ratios illustrate changing market sentiment, with elevated investor expectations around early 2021 and more cautious valuation in recent quarters. The share price movements appear sensitive to these shifts, underscoring the impact of earnings and market perception on the valuation of the company.
Price to Operating Profit (P/OP)
Align Technology Inc., historical P/OP calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Income (loss) from operations (in thousands) | ||||||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
Operating profit per share
= (Income (loss) from operationsQ3 2023
+ Income (loss) from operationsQ2 2023
+ Income (loss) from operationsQ1 2023
+ Income (loss) from operationsQ4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited significant volatility over the periods analyzed. Starting at $255.14 in March 2018, it experienced fluctuations including a notable decline to $180.93 by September 2022. The share price peaked at $708.01 in June 2021 before undergoing a steady decline again to $197.44 by September 2023. Overall, the pattern shows periods of rapid appreciation followed by sharp corrections.
- Operating Profit Per Share
- Operating profit per share data is available beginning from March 2019. Initially, it stood at $5.83 and displayed a generally increasing trend, peaking at $12.39 in September 2021. Subsequent quarters show a decline, settling around $7.34-$7.63 in mid-to-late 2023. This indicates an increase in operating profitability over the earlier periods followed by a reduction more recently, suggesting potential margin pressures or other operational challenges.
- Price to Operating Profit (P/OP) Ratio
- The Price to Operating Profit ratio indicates the valuation relative to operating profit. The ratio was high at 57.17 in June 2019 but showed considerable fluctuations, reaching extreme values such as 115.91 and 103.33 in September and December 2020, respectively. From 2021 onward, the ratio generally trended downward, hitting a low of 18.82 in September 2022, then increasing again to reach 49.24 by September 2023. This variability suggests changes in investor sentiment and market valuation relative to the company’s operating earnings over time.
- Overall Observations
- The data reveals a company experiencing substantial fluctuations both in market valuation (share price) and operating financial performance. While operating profit per share grew substantially until late 2021, market valuations as measured by the price to operating profit ratio have been volatile, with periods of overvaluation relative to earnings and subsequent corrections. Recent trends imply a moderation in operating profitability and a corresponding adjustment in market expectations.
Price to Sales (P/S)
Align Technology Inc., historical P/S calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Net revenues (in thousands) | ||||||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
Sales per share
= (Net revenuesQ3 2023
+ Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibits notable volatility over the examined periods. Beginning at $255.14 in March 2018, it reached a peak of $708.01 in June 2021, reflecting a substantial upward trend during this interval. However, after mid-2021, the share price experienced a significant decline, dropping to around $180.93 by September 2022, before a subsequent partial recovery to $361.44 in June 2023 and then a decrease again to $197.44 by September 2023. This pattern suggests phases of rapid growth followed by periods of correction or decreased investor confidence.
- Sales per Share
- Sales per share showed a generally upward trajectory from March 2019 through mid-2022, increasing from $24.58 to a peak of approximately $51.15 in June 2022. This consistent growth indicates strengthening revenue performance on a per-share basis. After mid-2022, sales per share plateau and slightly decline to stabilize around the $48 to $49 range through to September 2023, signaling a potential slowdown or stabilization in sales growth.
- Price-to-Sales (P/S) Ratio
- The P/S ratio displays considerable fluctuation across the periods. Early on, it was moderate, then rose sharply to a high of 18.15 in December 2020, indicating elevated valuation relative to sales at that time. Following this peak, the ratio generally trended downward, reaching a low of 3.66 in March 2023. The declining P/S ratio alongside share price decrease suggests market revaluation or correction relative to the company’s sales. Recent periods show a slight rebound in the ratio to around 7.4 in September 2023 but still lower than earlier peaks, indicating cautious investor sentiment or reassessment of growth prospects.
- Insights and Patterns
- The data reveals a period of rapid share price appreciation and rising sales per share until mid-2021, followed by a marked share price correction in 2022 despite relatively stable sales per share. The divergence between declining share price and steady sales per share led to a reduction in valuation multiples, as reflected in the decreasing P/S ratio. This pattern may suggest that investors are adjusting expectations regarding future growth or responding to broader market conditions. The partial recovery in share price and P/S ratio in 2023 points to some regained confidence, though levels remain subdued compared to prior highs.
Price to Book Value (P/BV)
Align Technology Inc., historical P/BV calculation (quarterly data)
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||||
| Stockholders’ equity (in thousands) | ||||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q3 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Align Technology Inc. Quarterly or Annual Report.
4 Q3 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited significant volatility over the periods analyzed. Initially, it rose from $255.14 in March 2018 to a peak of $367.92 in June 2018, before declining and fluctuating between approximately $200 and $300 through 2019 and early 2020. From mid-2020, the share price experienced a strong upward trend, reaching an all-time high of $708.01 in June 2021. Subsequently, there was a marked decline with the price reducing to around $180.93 by September 2022. In the most recent quarters, the price showed some recovery, rising to $361.44 in September 2023 but remained well below its mid-2021 peak.
- Book Value Per Share (BVPS) Trend
- BVPS demonstrated a consistent upward trend throughout the periods, indicating steady growth in the company's net asset value per share. Starting at $14.07 in March 2018, it increased gradually and more notably from 2019 onward, reaching $36.22 by March 2020. This growth continued at a steady pace, with BVPS closing near $49.64 in September 2023. The increase suggests continuous improvements in the company’s equity base over time.
- Price-to-Book Value (P/BV) Ratio Analysis
- The P/BV ratio, reflecting market valuation relative to book value, showed considerable fluctuations reflecting changes in the share price relative to the increasing BVPS. The ratio was at a high of 24.24 in June 2018, reflecting possibly an overvaluation or high growth expectations, before dropping steadily to as low as 3.83 in September 2022, coinciding with the share price trough. Periods of elevated P/BV above 10 were primarily observed around mid-2018 and again from late 2020 through early 2022, parallel with spikes in share price. More recently, the ratio stabilized around 4 to 8, indicating a more moderate market valuation relative to the book value.
- Overall Insights
- The data reveal a company with strong fundamental growth as reflected in steadily increasing book value per share. However, the market's valuation of the company has been subject to significant fluctuations, influenced by external factors or investor sentiment, as seen in the volatile share price and P/BV ratio trends. The peak share price in mid-2021 and subsequent decline paired with rising book values suggest market corrections following periods of potential overvaluation. The recent partial recovery in share price may indicate a stabilization in market perception relative to the company's underlying equity growth.