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
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. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | Semiconductors & Semiconductor Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||
| Current share price (P) | $122.47 | |||||||||||||||||
| No. shares of common stock outstanding | 135,759,339 | |||||||||||||||||
| Growth rate (g) | 44.49% | |||||||||||||||||
| Earnings per share (EPS) | $3.23 | |||||||||||||||||
| Next year expected EPS | $4.67 | |||||||||||||||||
| Operating profit per share | $3.28 | |||||||||||||||||
| Sales per share | $16.87 | |||||||||||||||||
| Book value per share (BVPS) | $7.25 | |||||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||||
| Price to earnings (P/E) | 37.88 | 237.48 | 84.12 | 55.00 | 72.83 | — | 50.83 | 54.29 | 86.02 | 143.15 | 45.18 | 38.42 | 50.78 | 254.08 | 90.08 | |||
| Price to next year expected earnings | 26.21 | 226.89 | 82.81 | 40.62 | 73.43 | — | 30.45 | 36.91 | 89.30 | 132.03 | 30.12 | 29.24 | 45.67 | 227.26 | 71.07 | |||
| Price-earnings-growth (PEG) | 0.85 | 50.87 | 53.10 | 1.55 | — | — | 0.76 | 1.15 | — | 17.00 | 0.90 | 1.22 | 4.54 | 21.53 | 3.37 | |||
| Price to operating profit (P/OP) | 37.30 | 278.69 | 65.04 | 46.43 | 66.09 | — | 43.37 | 48.10 | 173.63 | 125.11 | 41.60 | 17.23 | 42.16 | 232.35 | 74.90 | |||
| Price to sales (P/S) | 7.26 | 29.72 | 17.31 | 13.57 | 26.36 | 11.74 | 18.08 | 16.98 | 28.03 | 32.70 | 25.12 | 4.81 | 14.36 | 42.29 | 18.23 | |||
| Price to book value (P/BV) | 16.90 | 16.34 | 5.64 | 18.85 | 20.72 | 5.43 | 38.67 | 31.63 | 16.05 | 22.57 | 34.48 | 10.04 | 15.61 | 32.24 | 28.16 | |||
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
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).
A comprehensive review of valuation multiples from 2019 to 2023 reveals a period of significant volatility characterized by a sharp expansion in 2020 followed by a sustained multi-year contraction. All analyzed ratios peaked in 2020, indicating a phase of high market optimism or aggressive growth expectations, before trending downward through the end of 2023.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- Both earnings-based multiples exhibit a synchronized trajectory. The P/E ratio escalated from 45.17 in 2019 to a peak of 186.32 in 2020, after which it declined steadily to 37.88 by 2023. Similarly, the P/OP ratio rose from 70.85 in 2019 to 133.91 in 2020 before contracting to 37.30 in 2023. This trend suggests a significant reduction in the premium investors were willing to pay per unit of profit over the five-year period.
- Price to Sales (P/S)
- The P/S ratio experienced a dramatic increase in 2020, reaching 32.24 from an initial 11.66 in 2019. A sharp correction occurred in 2021, bringing the ratio down to 14.12, followed by a gradual decline to 7.26 by the end of 2023. The 2023 value represents the lowest revenue multiple observed within the timeframe.
- Price to Book Value (P/BV)
- The P/BV ratio followed a pattern of expansion and subsequent compression, peaking at 51.58 in 2020 from 26.74 in 2019. The ratio decreased consistently over the following three years, ending at 16.90 in 2023. This decline indicates a reduction in the market value premium relative to the company's accounting equity.
Overall, the valuation profile shifted from a moderate baseline in 2019 to an aggressive peak in 2020, eventually settling into a compressed state by 2023. The convergence of the P/E and P/OP ratios to nearly identical levels in 2023 suggests a stabilization of the valuation relative to operational profitability.
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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 | 135,759,339 | 136,497,418 | 133,935,574 | 129,021,311 | 123,179,271 | |
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | 438,936) | 397,362) | 145,449) | 133,995) | 161,148) | |
| Earnings per share (EPS)2 | 3.23 | 2.91 | 1.09 | 1.04 | 1.31 | |
| Share price1, 3 | 122.47 | 212.57 | 145.69 | 193.50 | 59.09 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 37.88 | 73.02 | 134.16 | 186.32 | 45.17 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 317.27 | 96.16 | 45.54 | — | — | |
| Analog Devices Inc. | 27.14 | 31.21 | 68.31 | 41.43 | — | |
| Applied Materials Inc. | 19.63 | 13.55 | 22.05 | 22.31 | — | |
| Broadcom Inc. | 36.78 | 20.70 | 40.73 | 66.38 | — | |
| Intel Corp. | 109.27 | 14.54 | 9.85 | — | — | |
| KLA Corp. | 20.04 | 16.89 | 25.97 | — | — | |
| Lam Research Corp. | 19.26 | 13.77 | 21.03 | — | — | |
| Marvell Technology Inc. | — | — | — | — | — | |
| Micron Technology Inc. | — | 6.62 | 13.38 | 21.80 | — | |
| NVIDIA Corp. | 131.70 | 68.08 | 78.54 | — | — | |
| Qualcomm Inc. | 17.07 | 9.75 | 17.15 | 28.06 | — | |
| Texas Instruments Inc. | 22.24 | 18.88 | 20.38 | — | — | |
| P/E Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 49.31 | 23.72 | 24.87 | — | — | |
| P/E Ratio, Industry | ||||||
| Information Technology | 36.13 | 26.99 | 29.70 | — | — | |
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
= 438,936,000 ÷ 135,759,339 = 3.23
3 Closing price as at the filing date of Enphase Energy Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 122.47 ÷ 3.23 = 37.88
5 Click competitor name to see calculations.
The analysis of valuation multiples from 2019 to 2023 reveals a significant transition in market sentiment and earnings performance. While earnings per share demonstrated substantial growth in the latter half of the period, the price-to-earnings ratio experienced a sharp peak followed by a sustained and aggressive contraction.
- Price-to-Earnings (P/E) Trend
- The P/E ratio exhibited extreme volatility, escalating from 45.17 in 2019 to a peak of 186.32 in 2020. Following this peak, a consistent downward trend occurred over the subsequent three years, ending at 37.88 in 2023. This compression suggests a shift from a high-growth speculative valuation to a more conservative multiple based on realized earnings.
- Earnings Per Share (EPS) Performance
- Earnings per share remained relatively stagnant between 2019 and 2021, fluctuating within a narrow range between $1.04 and $1.31. A significant acceleration in profitability began in 2022, with EPS rising to $2.91, and further increasing to a period high of $3.23 in 2023. This indicates a strong improvement in the company's ability to generate profit per share over time.
- Share Price Dynamics and Correlation
- The share price demonstrated a non-linear relationship with earnings. Despite the steady growth in EPS from 2021 through 2023, the share price peaked in 2022 at $212.57 before declining sharply to $122.47 in 2023. The divergence in 2023, where record earnings coincided with a declining share price, served as the primary driver for the lowest P/E ratio observed in the five-year period.
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Price to Operating Profit (P/OP)
Enphase Energy Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 135,759,339 | 136,497,418 | 133,935,574 | 129,021,311 | 123,179,271 | |
| Selected Financial Data (US$) | ||||||
| Income from operations (in thousands) | 445,741) | 448,261) | 215,832) | 186,439) | 102,729) | |
| Operating profit per share2 | 3.28 | 3.28 | 1.61 | 1.45 | 0.83 | |
| Share price1, 3 | 122.47 | 212.57 | 145.69 | 193.50 | 59.09 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 37.30 | 64.73 | 90.41 | 133.91 | 70.85 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 675.69 | 100.42 | 39.48 | — | — | |
| Analog Devices Inc. | 23.53 | 26.16 | 56.12 | 33.76 | — | |
| Applied Materials Inc. | 17.58 | 11.35 | 18.85 | 18.50 | — | |
| Broadcom Inc. | 31.96 | 16.33 | 30.78 | 44.04 | — | |
| Intel Corp. | 1,984.43 | 49.91 | 10.06 | — | — | |
| KLA Corp. | 16.99 | 15.36 | 21.69 | — | — | |
| Lam Research Corp. | 16.79 | 11.79 | 18.34 | — | — | |
| Marvell Technology Inc. | 147.29 | — | — | — | — | |
| Micron Technology Inc. | — | 5.93 | 12.48 | 19.51 | — | |
| NVIDIA Corp. | 136.19 | 66.12 | 75.08 | — | — | |
| Qualcomm Inc. | 15.85 | 7.95 | 15.84 | 23.32 | — | |
| Texas Instruments Inc. | 19.75 | 16.29 | 17.67 | — | — | |
| P/OP Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 45.10 | 22.05 | 22.59 | — | — | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 30.04 | 22.89 | 26.21 | — | — | |
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
= 445,741,000 ÷ 135,759,339 = 3.28
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
= 122.47 ÷ 3.28 = 37.30
5 Click competitor name to see calculations.
An analysis of the five-year period reveals a significant divergence between operational growth and market valuation. While operating profits per share demonstrated a consistent upward trajectory, the price-to-operating profit (P/OP) multiple experienced a substantial contraction following a peak in 2020.
- Operating Profitability
- Operating profit per share grew steadily from 0.83 USD in 2019 to 3.28 USD by 2022, maintaining that level through 2023. This represents a cumulative increase in operational earnings per share of approximately 295% over the period analyzed.
- Share Price Volatility
- The share price exhibited considerable volatility, increasing from 59.09 USD in 2019 to a peak of 212.57 USD in 2022, before experiencing a sharp correction to 122.47 USD by the end of 2023.
- Valuation Multiple Compression
- The P/OP ratio reached a maximum of 133.91 in 2020, signaling an era of aggressive market pricing relative to earnings. Following this peak, a consistent downward trend is observed, with the ratio declining to 90.41 in 2021, 64.73 in 2022, and concluding at 37.30 in 2023. This trend indicates a significant compression in the valuation multiple, as the market attributed a lower price to each unit of operating profit over time.
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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 | 135,759,339 | 136,497,418 | 133,935,574 | 129,021,311 | 123,179,271 | |
| Selected Financial Data (US$) | ||||||
| Net revenues (in thousands) | 2,290,786) | 2,330,853) | 1,382,049) | 774,425) | 624,333) | |
| Sales per share2 | 16.87 | 17.08 | 10.32 | 6.00 | 5.07 | |
| Share price1, 3 | 122.47 | 212.57 | 145.69 | 193.50 | 59.09 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 7.26 | 12.45 | 14.12 | 32.24 | 11.66 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 11.95 | 5.38 | 8.76 | — | — | |
| Analog Devices Inc. | 7.31 | 7.14 | 12.98 | 9.03 | — | |
| Applied Materials Inc. | 5.08 | 3.43 | 5.63 | 4.69 | — | |
| Broadcom Inc. | 14.46 | 7.00 | 9.55 | 7.40 | — | |
| Intel Corp. | 3.40 | 1.85 | 2.48 | — | — | |
| KLA Corp. | 6.47 | 6.09 | 7.80 | — | — | |
| Lam Research Corp. | 4.99 | 3.68 | 5.62 | — | — | |
| Marvell Technology Inc. | 5.92 | 12.40 | 10.92 | — | — | |
| Micron Technology Inc. | 4.94 | 1.87 | 2.83 | 2.73 | — | |
| NVIDIA Corp. | 21.33 | 24.67 | 20.41 | — | — | |
| Qualcomm Inc. | 3.45 | 2.85 | 4.62 | 6.20 | — | |
| Texas Instruments Inc. | 8.26 | 8.25 | 8.63 | — | — | |
| P/S Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 8.21 | 5.92 | 6.30 | — | — | |
| P/S Ratio, Industry | ||||||
| Information Technology | 7.31 | 6.01 | 6.97 | — | — | |
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
= 2,290,786,000 ÷ 135,759,339 = 16.87
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
= 122.47 ÷ 16.87 = 7.26
5 Click competitor name to see calculations.
The financial data indicates a period of significant volatility in market valuation contrasted with a steady expansion in revenue generation per share between 2019 and 2023. While the underlying sales capacity per share grew consistently for the majority of the period, the market multiple applied to those sales experienced a sharp peak followed by a sustained contraction.
- Sales per Share Performance
- A strong upward trajectory in sales per share is observed from 2019 to 2022, increasing from 5.07 US$ to 17.08 US$. This represents a substantial growth in the company's ability to generate revenue on a per-share basis. A slight plateau occurred in 2023, with sales per share dipping marginally to 16.87 US$, suggesting a stabilization of revenue growth.
- Share Price Volatility
- The share price exhibited high variance, rising sharply from 59.09 US$ in 2019 to a peak of 212.57 US$ in 2022. However, a significant correction occurred by December 31, 2023, with the price falling to 122.47 US$. This volatility indicates shifting investor sentiment regardless of the steady increase in revenue.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio reached an extreme peak of 32.24 in 2020, reflecting a period of aggressive market valuation. Following this peak, a consistent downward trend is observed, with the ratio falling to 14.12 in 2021, 12.45 in 2022, and finally 7.26 in 2023. This compression suggests that the market is now valuing each dollar of sales significantly lower than in previous years, bringing the 2023 valuation below the 2019 baseline of 11.66.
The divergence between the growth in sales per share and the decline in the P/S ratio highlights a valuation decompression. Despite the company successfully scaling its revenue per share over the five-year period, the multiple the market is willing to pay for those sales has diminished, indicating a transition toward a more conservative valuation framework.
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Price to Book Value (P/BV)
Enphase Energy Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 135,759,339 | 136,497,418 | 133,935,574 | 129,021,311 | 123,179,271 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | 983,624) | 825,573) | 430,168) | 483,993) | 272,212) | |
| Book value per share (BVPS)2 | 7.25 | 6.05 | 3.21 | 3.75 | 2.21 | |
| Share price1, 3 | 122.47 | 212.57 | 145.69 | 193.50 | 59.09 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 16.90 | 35.15 | 45.36 | 51.58 | 26.74 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Advanced Micro Devices Inc. | 4.85 | 2.32 | 19.21 | — | — | |
| Analog Devices Inc. | 2.53 | 2.35 | 2.50 | 4.22 | — | |
| Applied Materials Inc. | 8.23 | 7.25 | 10.60 | 7.63 | — | |
| Broadcom Inc. | 21.59 | 10.23 | 10.50 | 7.40 | — | |
| Intel Corp. | 1.75 | 1.15 | 2.05 | — | — | |
| KLA Corp. | 23.25 | 40.04 | 15.98 | — | — | |
| Lam Research Corp. | 10.58 | 10.10 | 13.64 | — | — | |
| Marvell Technology Inc. | 2.24 | 3.52 | 3.84 | — | — | |
| Micron Technology Inc. | 1.74 | 1.15 | 1.79 | 1.50 | — | |
| NVIDIA Corp. | 26.03 | 24.95 | 20.14 | — | — | |
| Qualcomm Inc. | 5.72 | 7.00 | 15.59 | 24.00 | — | |
| Texas Instruments Inc. | 8.57 | 11.33 | 11.87 | — | — | |
| P/BV Ratio, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 6.26 | 5.10 | 6.17 | — | — | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 11.29 | 10.25 | 12.35 | — | — | |
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
= 983,624,000 ÷ 135,759,339 = 7.25
3 Closing price as at the filing date of Enphase Energy Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 122.47 ÷ 7.25 = 16.90
5 Click competitor name to see calculations.
The financial data reveals a divergent trend between the company's intrinsic accounting value and its market valuation over the five-year period from 2019 to 2023. While the book value per share has shown consistent growth, the market price has experienced significant volatility, leading to a substantial compression of the Price to Book Value (P/BV) multiple.
- Book Value per Share (BVPS) Growth
- A sustained upward trajectory in the book value per share is observed, increasing from 2.21 USD in 2019 to 7.25 USD by the end of 2023. Despite a slight contraction in 2021, the overall trend indicates a steady accumulation of equity and an improvement in the company's net asset position per share.
- Share Price Volatility
- The market price exhibited high volatility throughout the period. A sharp increase occurred between 2019 and 2020, with the price rising from 59.09 USD to 193.50 USD. Following a correction in 2021, the price reached a peak of 212.57 USD in 2022, before declining significantly to 122.47 USD in 2023.
- Price to Book Value (P/BV) Multiple Analysis
- The P/BV ratio peaked in 2020 at 51.58, reflecting a period of aggressive market valuation relative to book value. From that peak, a consistent downward trend is observed, with the ratio falling to 16.90 by 2023. This compression is the result of two converging factors: the simultaneous increase in the denominator (BVPS) and the decrease in the numerator (Share Price) during the final year of the sequence.
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