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).
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Current Valuation Ratios
Enphase Energy Inc., current price multiples
| Enphase Energy Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2023-12-31).
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)
Enphase Energy Inc., historical price multiples
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2023-12-31), 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).
- Price to Earnings (P/E) Ratio
- The P/E ratio showed significant volatility over the observed period. It increased sharply from 45.17 at the end of 2019 to a peak of 186.32 in 2020, indicating heightened market expectations or possibly inflated earnings multiples. Subsequently, the ratio declined consistently over the next three years, dropping to 37.88 by the end of 2023, which suggests a normalization or improved earnings performance relative to stock price.
- Price to Operating Profit (P/OP) Ratio
- This ratio demonstrated a similar trend to P/E, with an initial substantial rise from 70.85 in 2019 to 133.91 in 2020. It then fell steadily, reaching 37.3 in 2023. This pattern indicates that the market initially anticipated strong operating profit growth, but valuation multiples have since compressed, possibly reflecting actual profitability gains or adjustments in investor sentiment.
- Price to Sales (P/S) Ratio
- The P/S ratio surged sharply from 11.66 in 2019 to 32.24 in 2020, marking an increased market premium on sales. However, unlike P/E and P/OP ratios, this metric declined more gradually, showing a steady downward trend each year to 7.26 by 2023. This reduction signifies either growth in sales driving down the multiple or a market reassessment of revenue quality or growth prospects.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio more than doubled from 26.74 in 2019 to 51.58 in 2020 before progressively descending to 16.9 in 2023. The decrease over the last few years suggests an adjustment in market valuation relative to the company's book value, implying either an increase in book value, reduced investor exuberance, or both.
- Overall Insights
- Across all valuation metrics, the year 2020 represents a peak in market valuation ratios followed by a consistent decline through 2023. This trend suggests that the market initially priced the company with exceptionally high expectations, which have since moderated. The declining multiples could reflect improvements in financial fundamentals, such as increased earnings and operating profit, or a shift toward more conservative investor expectations. Additionally, the relatively sharper decrease in the P/S and P/BV ratios compared to P/E and P/OP indicates that the company’s sales and book value growth may have contributed to compressing these valuation multiples.
Price to Earnings (P/E)
Enphase Energy Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/E Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Enphase Energy Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant volatility over the five-year period. It increased markedly from $59.09 in 2019 to a peak of $212.57 in 2022, representing a substantial growth. However, in 2023, the share price declined sharply to $122.47, indicating a reversal from the prior upward trend.
- Earnings Per Share (EPS)
- EPS showed a generally positive trend throughout the period. Starting at $1.31 in 2019, it experienced a slight decline in 2020 to $1.04 but then resumed growth, reaching $3.23 by 2023. The increase from 2021 onward was particularly pronounced, with EPS nearly tripling between 2021 and 2023.
- Price-to-Earnings Ratio (P/E)
- The P/E ratio demonstrated a declining trend after an initial surge. It escalated sharply from 45.17 in 2019 to 186.32 in 2020, then steadily decreased to 37.88 by 2023. This decline indicates that the price level relative to earnings has been moderating, likely reflecting improving earnings or market revaluation.
Price to Operating Profit (P/OP)
Enphase Energy Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income from operations (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/OP Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Enphase Energy Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant fluctuations over the five-year period. It increased sharply from $59.09 in 2019 to a peak of $193.50 in 2020, representing a more than threefold growth. This was followed by a decline to $145.69 in 2021. In 2022, the price rose again, reaching a new high of $212.57 before dropping significantly to $122.47 in 2023. Overall, the share price has remained volatile with notable peaks in 2020 and 2022.
- Operating Profit Per Share (OPPS)
- The operating profit per share demonstrated a consistent upward trend from 2019 through 2022, increasing from $0.83 to $3.28, effectively quadrupling over the period. The OPPS stabilized in 2023, remaining constant at $3.28. This indicates sustained profitability growth with stabilization in the most recent year evaluated.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed marked variation across the years. It started at 70.85 in 2019 and surged to a high of 133.91 in 2020, despite the significant increase in operating profit, suggesting that the share price growth outpaced profitability enhancements during that year. Subsequently, the ratio declined steadily to 90.41 in 2021, 64.73 in 2022, and further down to 37.3 in 2023. This downward trend reflects a more favorable valuation of operating profit relative to the share price in recent years, implying improved market recognition of earnings or a decrease in price relative to operating profit.
- Overall Analysis
- The data reflects a company experiencing strong growth in operating profit per share over the observed period, with operating profit stabilizing at a high level by 2022 and 2023. Share price movements have been volatile, with sharp rises and declines, influenced both by market conditions and company performance. The decreasing P/OP ratio over the latter years suggests a shift toward more attractive valuations relative to operating profit, potentially indicating improved market efficiency or changing investor sentiment. The stabilization of operating profit combined with a lower P/OP ratio in 2023, despite the decline in share price, may reflect a reassessment of risk or future growth expectations by the market.
Price to Sales (P/S)
Enphase Energy Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net revenues (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/S Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Enphase Energy Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited considerable volatility over the five-year period. It increased sharply from $59.09 in 2019 to a peak of $193.50 in 2020, followed by a decrease to $145.69 in 2021. Subsequently, it rose again to $212.57 in 2022 before declining significantly to $122.47 in 2023. This pattern indicates fluctuations in market sentiment or external factors influencing the stock value.
- Sales per Share
- Sales per share showed a consistent upward trend from 2019 through 2022, rising from $5.07 to $17.08. In 2023, there was a minor decline to $16.87, but overall, the metric more than tripled over the five-year span, suggesting strong revenue growth on a per-share basis.
- Price-to-Sales (P/S) Ratio
- The P/S ratio peaked dramatically at 32.24 in 2020, reflecting a high market valuation relative to sales at that time. This was followed by a steady decline over the subsequent years, falling to 14.12 in 2021, 12.45 in 2022, and culminating at 7.26 in 2023. The downward trend in this ratio indicates a market valuation becoming more conservative relative to sales, despite the increase in sales per share.
Price to Book Value (P/BV)
Enphase Energy Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| P/BV Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Enphase Energy Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the five-year period.
- Share Price
- The share price demonstrated substantial fluctuation from 2019 to 2023. It started at $59.09 in 2019, surged significantly to a peak of $193.50 in 2020, indicating strong market optimism or growth expectations during that year. Following this peak, the share price declined to $145.69 in 2021 but then rose again to $212.57 in 2022, reaching its highest point in the observed timeframe. However, in 2023, the share price experienced a notable decline to $122.47, which is considerably lower than the previous peak years but still higher than the 2019 base level.
- Book Value Per Share (BVPS)
- BVPS exhibited a consistent upward trend over the period with some variation. Beginning at $2.21 in 2019, it increased to $3.75 in 2020 but then slightly decreased to $3.21 in 2021, signaling a minor setback or adjustment in book value during that year. The BVPS rebounded strongly in subsequent years, climbing to $6.05 in 2022 and further to $7.25 in 2023. This overall growth suggests an enhancement in the company’s net asset value on a per-share basis.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio, which compares market valuation to book value, showed a decreasing trend over the period, reflecting changes in both share price and book value dynamics. Starting very high at 26.74 in 2019, the ratio more than doubled to 51.58 in 2020, mostly driven by the sharp rise in share price relative to book value. Subsequently, the ratio consistently declined each year: 45.36 in 2021, 35.15 in 2022, and significantly down to 16.90 in 2023. This trend indicates a gradual market reassessment of the company’s valuation relative to its book value, possibly reflecting more conservative market sentiment or aligning valuation more closely with underlying net assets.
In summary, while the share price experienced volatility with peaks in 2020 and 2022 followed by a decrease in 2023, the book value per share steadily increased over the period, signifying strengthening net asset value. The decreasing P/BV ratio over the years suggests a market valuation that is becoming more aligned with the company's book value, indicating a moderation in investor expectations or a revaluation of the company’s growth prospects.