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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Kraft Heinz Co. pages available for free this week:
- Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2015
- Total Asset Turnover since 2015
- Price to Operating Profit (P/OP) since 2015
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Current Valuation Ratios
Kraft Heinz Co., current price multiples
| Kraft Heinz Co. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | ||
|---|---|---|---|---|---|---|
| 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: 2019-12-28).
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)
Kraft Heinz Co., historical price multiples
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibits significant volatility over the analyzed periods. Data is unavailable for 2015 and 2018. In 2016, the ratio was notably high at 32.77, indicating elevated market expectations relative to earnings. This sharply declines to 7.85 in 2017, suggesting a reduction in price relative to earnings or improved earnings. In 2019, the ratio rose again to 16.97, indicating moderate recovery in valuation compared to earnings but still below the 2016 peak.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio shows a clear downward trend from 35.63 in 2015 to 10.69 in 2019, evidencing a steady reduction in market price relative to operating profit. The ratio decreased by nearly two-thirds over the five-year period (with data missing for 2018), which may reflect either improving operating profits, declining market prices, or a combination. This trend suggests increasing operating efficiency or market skepticism towards price levels based on operating profit.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio consistently declined across all available years, starting at 5.13 in 2015 and reaching a low of 1.31 in 2019. The continuous decrease across the five years indicates that market valuation relative to sales decreased substantially, potentially pointing to stabilization or reduction in price, growth in sales, or changing investor perception of sales quality or growth prospects.
- Price to Book Value (P/BV) Ratio
- This ratio decreased steadily from 1.63 in 2015 to 0.64 in 2019, underscoring a significant drop in market price relative to the book value of the company. The nearly 60% decline indicates that the company's market valuation per unit of net asset value has weakened markedly over the period, suggesting potential market concerns about asset quality, profitability, or growth potential relative to book value.
Price to Earnings (P/E)
Kraft Heinz Co., historical P/E calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to common shareholders (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
EPS = Net income (loss) attributable to common shareholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a notable increase from US$77.37 at the end of 2015 to a peak of US$92.94 in 2016. Following this increase, the share price declined sharply over the subsequent years, dropping to US$70.80 in 2017, then significantly falling to US$28.74 in 2018, and further decreasing slightly to US$26.88 by the end of 2019. This trend indicates a steep depreciation in market value after 2016.
- Earnings Per Share (EPS) Analysis
- EPS showed considerable volatility throughout the period. In 2015, the company experienced a negative EPS of -US$0.22, which improved substantially to US$2.84 in 2016. The upward trajectory continued into 2017, with EPS reaching US$9.02. However, this was followed by a sharp reversal in 2018, where EPS declined drastically to -US$8.35, indicating a period of losses. The EPS recovered to a positive US$1.58 by the end of 2019, suggesting some financial stabilization.
- Price-to-Earnings (P/E) Ratio Observations
- The P/E ratio was not recorded for 2015. In 2016, the ratio stood at 32.77, which reflects investor expectations for growth following the initial EPS improvement. It subsequently decreased to 7.85 in 2017, consistent with the substantial increase in EPS that year. No P/E ratio is provided for 2018, likely corresponding with the negative EPS that makes the ratio undefined or not meaningful. The ratio rose to 16.97 in 2019, reflecting recovery in earnings and a moderate investor valuation.
- Overall Financial Insights
- The data reflects a period of significant earnings volatility and declining market valuation after 2016. Despite strong earnings performance in 2017, the company faced severe earnings losses in 2018, which coincided with a dramatic reduction in share price. Recovery in EPS and a moderate P/E ratio in 2019 suggests some financial improvement, but the share price had not responded correspondingly by the end of the observed period.
Price to Operating Profit (P/OP)
Kraft Heinz Co., historical P/OP calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals notable fluctuations in both the market valuation and operating performance over the five-year period.
- Share Price Trend
- The share price exhibited an initial rise from $77.37 at the end of 2015 to a peak of $92.94 in 2016, followed by a decline in the subsequent years. By the end of 2017, the price had dropped to $70.80 and then decreased sharply to $28.74 by the end of 2018. A further slight decline was observed in 2019, closing at $26.88. This pattern indicates significant depreciation of the company's market value after 2016.
- Operating Profit Per Share
- The operating profit per share increased markedly from $2.17 in 2015 to $5.05 in 2016, continuing to rise slightly to $5.56 in 2017. However, in 2018 this value turned sharply negative to -$8.38, indicating a substantial operating loss that year. In 2019, the operating profit per share recovered to a positive value of $2.51 but remained below the levels seen from 2016 to 2017.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio declined significantly from 35.63 in 2015 to 18.42 in 2016 and further to 12.74 in 2017, reflecting a more favorable pricing of earnings relative to operating profit. Data for 2018 is missing, likely due to the negative operating profit per share making the ratio non-meaningful or not reported. In 2019, the ratio stood at 10.69, indicating that the market price was lower in relation to operating profit compared to earlier years, suggesting a more conservative valuation in the context of recovery from the prior loss.
In summary, the company's share price and operating profitability experienced considerable volatility over the period. After strong operating profits and market valuation through 2016 and 2017, there was a pronounced downturn in 2018 marked by operating losses and a steep share price decline. Partial recovery in operating profits and valuation measures occurred in 2019, though these remained below prior peak levels, suggesting ongoing challenges and market caution.
Price to Sales (P/S)
Kraft Heinz Co., historical P/S calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a significant fluctuation over the observed period. Initially, it increased from $77.37 at the end of 2015 to a peak of $92.94 by the end of 2016. Following this peak, there was a marked decline over the next three years, with the share price dropping to $70.80 in 2017, further down to $28.74 in 2018, and reaching $26.88 by the end of 2019. This pattern indicates a substantial loss in market value after 2016.
- Sales per Share Development
- Sales per share showed an upward trend from $15.09 in 2015 to $21.76 in 2016, reflecting growth in revenue generation on a per-share basis. However, this metric plateaued slightly afterwards, with sales per share remaining relatively stable at around $21.5 in 2017 and 2018 before a slight decline to $20.45 in 2019. Overall, the sales per share maintained a generally strong level despite minor fluctuations.
- Price-to-Sales Ratio (P/S) Analysis
- The P/S ratio demonstrated a continuous and notable decline throughout the period. Starting at 5.13 in 2015, the ratio decreased steadily each year, falling to 4.27 in 2016, 3.29 in 2017, then dropping sharply to 1.33 in 2018 and slightly further to 1.31 in 2019. This decreasing P/S ratio suggests the market was valuing the company’s sales less favorably over time, which may reflect investor concerns or changing perceptions of growth prospects despite relatively stable sales per share.
- Summary of Trends
- The data reveals a divergence between share price and sales performance. While sales per share remained relatively steady with only a minor decline toward the end of the period, the share price saw a drastic drop after reaching its peak in 2016. Correspondingly, the diminishing P/S ratio highlights a decline in market valuation relative to sales. This suggests that investor confidence and market sentiment weakened significantly after 2016, potentially due to underlying operational challenges, competitive pressures, or broader market conditions impacting the company’s perceived future potential.
Price to Book Value (P/BV)
Kraft Heinz Co., historical P/BV calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Philip Morris International Inc. | ||||||
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Kraft Heinz Co. Annual Report.
4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced a significant increase from 77.37 US$ in 2015 to a peak of 92.94 US$ in 2016. However, this was followed by a pronounced decline over the next three years, dropping to 70.8 US$ in 2017, then to 28.74 US$ in 2018, and slightly further to 26.88 US$ by the end of 2019. This reflects a substantial loss of investor confidence or market valuation reduction during the latter part of the period under review.
- Book Value Per Share (BVPS)
- The book value per share showed relative stability with a mild increase from 47.47 US$ in 2015 to 54.18 US$ in 2017, suggesting an improvement in net asset value during these years. However, BVPS declined notably to 42.34 US$ in 2018 and remained nearly flat at 42.27 US$ in 2019, indicating a reduction or stagnation in the company's net asset base over the final two years.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio rose from 1.63 in 2015 to a high of 1.97 in 2016, aligning with the peak in share price and suggesting a premium valuation relative to book value. Subsequently, it fell sharply to 1.31 in 2017 and continued to decline significantly to 0.68 in 2018 and 0.64 in 2019. A P/BV ratio below 1.0 typically indicates that the market values the company at less than its book value, pointing to potentially undervalued shares or market skepticism regarding future profitability.