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
Expedia Group Inc., current price multiples
| Expedia Group Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | Consumer Discretionary Distribution & Retail | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $150.31 | |||||||||
| No. shares of common stock outstanding | 157,097,831 | |||||||||
| Earnings per share (EPS) | $-1.71 | |||||||||
| Operating profit per share | $1.18 | |||||||||
| Sales per share | $54.73 | |||||||||
| Book value per share (BVPS) | $13.09 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to operating profit (P/OP) | 126.95 | 34.40 | 17.25 | 12.20 | 21.98 | 56.14 | 48.79 | |||
| Price to sales (P/S) | 2.75 | 3.70 | 2.33 | 1.53 | 2.46 | 4.14 | 4.29 | |||
| Price to book value (P/BV) | 11.48 | 8.25 | 55.93 | — | 16.50 | 20.14 | 16.02 | |||
Based on: 10-K (reporting date: 2021-12-31).
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)
Expedia Group Inc., historical price multiples
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The financial ratios for the company over the period from 2017 to 2021 display several noteworthy trends, particularly in valuation metrics.
- Price to Earnings (P/E) Ratio
- The P/E ratio showed a declining trend from 41.78 in 2017 to 30.43 in 2019, indicating a decreasing market valuation relative to earnings during this period. Data for 2020 and 2021 is missing, which limits full analysis for these years, but the downward movement prior to 2020 suggests either improved earnings relative to price or reduced investor expectations.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio similarly decreased from 25.26 in 2017 to 19.04 in 2019, reflecting a potential increase in operating profit relative to market price or a price correction. However, there is a dramatic increase in 2021 to 160.88, which signifies a significant shift in market valuation versus operating profit, possibly due to a sharp decline in operating profit or an extraordinary event impacting profitability and market sentiment.
- Price to Sales (P/S) Ratio
- This ratio remained relatively steady around the 1.4 to 1.7 range from 2017 through 2019 but exhibited a substantial increase to 4.05 in 2020 before slightly declining to 3.48 in 2021. The spike in 2020 indicates that the market price increased sharply relative to sales or sales decreased significantly, potentially attributable to exceptional circumstances affecting revenue generation during that year.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio showed a consistent upward trend from 3.49 in 2017 to 14.55 in 2021, with a particularly strong jump occurring between 2019 and 2020. This rising trend suggests increased market valuation relative to the company's net asset value, which might reflect optimistic investor expectations or a decrease in book value. The continued rise through 2021 accentuates this growing divergence between market price and book value.
Overall, the data reveals that valuation multiples related to price have generally become more elevated relative to earnings, operating profit, sales, and book value, particularly during and after 2020. This pattern may reflect changing market conditions, investor sentiment, or underlying performance shifts affecting profitability and asset valuation. The dramatic fluctuation in price-related ratios during 2020 and 2021 suggests the presence of extraordinary factors influencing the company's financial position and market perception.
Price to Earnings (P/E)
Expedia Group Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 155,754,357 | 143,864,551 | 139,989,125 | 147,190,304 | 151,833,402 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to Expedia Group, Inc. common stockholders (in millions) | (269) | (2,687) | 565) | 406) | 378) | |
| Earnings per share (EPS)2 | -1.73 | -18.68 | 4.04 | 2.76 | 2.49 | |
| Share price1, 3 | 192.12 | 146.51 | 122.80 | 130.80 | 104.00 | |
| Valuation Ratio | ||||||
| P/E ratio4 | — | — | 30.43 | 47.42 | 41.78 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Amazon.com Inc. | 48.08 | 78.20 | — | — | — | |
| Home Depot Inc. | 24.51 | 17.38 | — | — | — | |
| Lowe’s Cos. Inc. | 22.36 | 11.96 | — | — | — | |
| TJX Cos. Inc. | 881.78 | 17.13 | — | — | — | |
| P/E Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 40.84 | 49.11 | — | — | — | |
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | 38.75 | 72.10 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income (loss) attributable to Expedia Group, Inc. common stockholders ÷ No. shares of common stock outstanding
= -269,000,000 ÷ 155,754,357 = -1.73
3 Closing price as at the filing date of Expedia Group Inc. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 192.12 ÷ -1.73 = —
5 Click competitor name to see calculations.
The share price of the company shows a general upward trend over the five-year period, increasing from $104 at the end of 2017 to $192.12 at the end of 2021. There is a slight dip in 2019 compared to 2018, but the overall trajectory remains positive, with a significant jump noted between 2020 and 2021.
Earnings per share (EPS) exhibit variability and a marked decline in the latter years. From 2017 through 2019, EPS rose from $2.49 to $4.04, indicating improving profitability. However, there is a sharp reversal in 2020, with EPS plunging to -$18.68 and remaining negative at -$1.73 in 2021. This suggests a substantial loss during the pandemic period, with only partial recovery by the end of 2021.
The price-to-earnings (P/E) ratio shows a fluctuating pattern, increasing from 41.78 in 2017 to 47.42 in 2018, then declining to 30.43 in 2019. P/E data for 2020 and 2021 are unavailable, likely due to negative earnings in those years, making the ratio undefined or not meaningful. The elevated P/E ratios prior to 2020 indicate strong investor expectations relative to earnings, but this metric ceases to be applicable amid net losses.
In summary, the financial data reveal a company that experienced steady share price growth alongside rising earnings up to 2019, followed by a significant profitability downturn in 2020 and 2021. The negative EPS during the pandemic years correspond with the lack of P/E data, while the share price fully recovered and surpassed previous levels by 2021, possibly reflecting market optimism regarding a return to profitability or other external factors.
Price to Operating Profit (P/OP)
Expedia Group Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 155,754,357 | 143,864,551 | 139,989,125 | 147,190,304 | 151,833,402 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | 186) | (2,719) | 903) | 714) | 625) | |
| Operating profit per share2 | 1.19 | -18.90 | 6.45 | 4.85 | 4.12 | |
| Share price1, 3 | 192.12 | 146.51 | 122.80 | 130.80 | 104.00 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 160.88 | — | 19.04 | 26.96 | 25.26 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Amazon.com Inc. | 64.48 | 72.85 | — | — | — | |
| Home Depot Inc. | 17.25 | 12.33 | — | — | — | |
| Lowe’s Cos. Inc. | 13.52 | 8.11 | — | — | — | |
| TJX Cos. Inc. | 137.02 | 12.69 | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 39.89 | 39.83 | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | 40.49 | 58.11 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 186,000,000 ÷ 155,754,357 = 1.19
3 Closing price as at the filing date of Expedia Group Inc. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 192.12 ÷ 1.19 = 160.88
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated an overall increasing trend from 2017 to 2021. It rose from 104 US dollars in 2017 to 192.12 US dollars in 2021, reflecting substantial growth. Notably, there was a slight decline in 2019 compared to 2018, but the price recovered significantly in 2020 and 2021.
- Operating Profit Per Share
- Operating profit per share increased steadily from 4.12 US dollars in 2017 to 6.45 US dollars in 2019, indicating improved profitability. However, this was followed by a sharp decline to a negative value of -18.9 US dollars in 2020, suggesting significant operational challenges during that year. In 2021, the operating profit per share rebounded but remained relatively low at 1.19 US dollars, indicating partial recovery yet still below the earlier peak.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio followed a generally decreasing trend from 25.26 in 2017 to 19.04 in 2019, corresponding to rising operating profits and somewhat stable share prices. Data for 2020 is missing, likely due to the negative operating profit that year, making this ratio indeterminate. In 2021, the ratio spiked dramatically to 160.88, indicating that the share price was very high relative to the modest operating profit per share, suggesting market optimism despite relatively weak operating performance.
Price to Sales (P/S)
Expedia Group Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 155,754,357 | 143,864,551 | 139,989,125 | 147,190,304 | 151,833,402 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | 8,598) | 5,199) | 12,067) | 11,223) | 10,060) | |
| Sales per share2 | 55.20 | 36.14 | 86.20 | 76.25 | 66.26 | |
| Share price1, 3 | 192.12 | 146.51 | 122.80 | 130.80 | 104.00 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 3.48 | 4.05 | 1.42 | 1.72 | 1.57 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Amazon.com Inc. | 3.41 | 4.32 | — | — | — | |
| Home Depot Inc. | 2.39 | 1.77 | — | — | — | |
| Lowe’s Cos. Inc. | 1.46 | 0.71 | — | — | — | |
| TJX Cos. Inc. | 2.48 | 1.34 | — | — | — | |
| P/S Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 2.94 | 3.23 | — | — | — | |
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | 3.56 | 3.77 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 8,598,000,000 ÷ 155,754,357 = 55.20
3 Closing price as at the filing date of Expedia Group Inc. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 192.12 ÷ 55.20 = 3.48
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a general upward trend over the analyzed period. Starting at $104 in 2017, it increased to $130.8 in 2018. It then experienced a slight decline to $122.8 in 2019 before recovering and rising significantly to $146.51 in 2020 and further to $192.12 in 2021. This pattern indicates resilience and positive market sentiment following the dip in 2019.
- Sales Per Share Trend
- Sales per share showed growth from $66.26 in 2017 to a peak of $86.2 in 2019. However, there was a sharp decline in 2020 to $36.14, likely reflecting an extraordinary event impacting sales. In 2021, sales per share increased again to $55.2 but did not fully recover to pre-2020 levels.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio rose modestly from 1.57 in 2017 to 1.72 in 2018, followed by a decrease to 1.42 in 2019. In 2020, the P/S ratio surged dramatically to 4.05, reflecting the sharp drop in sales per share while the share price remained relatively elevated. In 2021, the ratio decreased to 3.48, suggesting some improvement in sales relative to price, but still indicating a high valuation relative to sales compared to previous years.
- Overall Insights
- The data reflect a strong share price performance over the five-year span despite volatility in sales per share, particularly during 2020. The significant decline in sales per share in 2020, accompanied by a rising P/S ratio, suggests that market valuation may have been driven by factors beyond sales, such as future growth expectations or market positioning. The partial recovery in sales per share in 2021 and corresponding reduction in the P/S ratio point to gradual operational recovery while maintaining relatively high market confidence.
Price to Book Value (P/BV)
Expedia Group Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 155,754,357 | 143,864,551 | 139,989,125 | 147,190,304 | 151,833,402 | |
| Selected Financial Data (US$) | ||||||
| Total Expedia Group, Inc. stockholders’ equity (in millions) | 2,057) | 2,532) | 3,967) | 4,104) | 4,522) | |
| Book value per share (BVPS)2 | 13.21 | 17.60 | 28.34 | 27.88 | 29.78 | |
| Share price1, 3 | 192.12 | 146.51 | 122.80 | 130.80 | 104.00 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 14.55 | 8.32 | 4.33 | 4.69 | 3.49 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Amazon.com Inc. | 11.60 | 17.86 | — | — | — | |
| Home Depot Inc. | 95.58 | — | — | — | — | |
| Lowe’s Cos. Inc. | 90.79 | 25.96 | — | — | — | |
| TJX Cos. Inc. | 13.68 | 9.42 | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 14.31 | 20.07 | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | 13.30 | 18.17 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Total Expedia Group, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 2,057,000,000 ÷ 155,754,357 = 13.21
3 Closing price as at the filing date of Expedia Group Inc. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 192.12 ÷ 13.21 = 14.55
5 Click competitor name to see calculations.
The analyzed data reveal notable trends in the share price, book value per share (BVPS), and price-to-book value ratio (P/BV) of the company over a five-year period ending in 2021.
- Share Price
-
The share price displays a generally upward trend throughout the observed period. Starting at $104 in 2017, the price increased to $130.8 in 2018, slightly decreased to $122.8 in 2019, and then rose significantly to $146.51 in 2020. The upward momentum continued sharply into 2021, reaching $192.12. This pattern indicates growing investor confidence and stronger market valuation over time, particularly during the last two years.
- Book Value per Share (BVPS)
-
In contrast to the share price, the book value per share declined steadily over the same timeframe. Starting at $29.78 in 2017, it fell modestly to $27.88 in 2018 and $28.34 in 2019, but then dropped more sharply to $17.6 in 2020 and further to $13.21 in 2021. This downward trend suggests a reduction in net asset value attributable to shareholders, which could be due to factors such as asset write-downs, increased liabilities, or distributions exceeding earnings.
- Price-to-Book Value Ratio (P/BV)
-
The P/BV ratio displays a significant and consistent increase over the period, reflecting the divergent trends of share price and BVPS. From 3.49 in 2017, it increased to 4.69 in 2018, then slightly decreased to 4.33 in 2019. However, it surged to 8.32 in 2020 and further escalated to 14.55 in 2021. The sharp rise in this ratio suggests that the market is valuing the company's shares at a much higher premium relative to their book value, potentially indicating expectations of strong future earnings, intangible asset growth, or market optimism that outweighs the reduction in book value.
Overall, the data reflect a scenario where the market valuation and demand for the company's shares have increased substantially, even though the book value per share has decreased. This discrepancy results in a pronounced rise in the P/BV ratio, highlighting the importance of analyzing both market and accounting metrics to understand the company's financial health and investor sentiment comprehensively.