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
Palo Alto Networks Inc., current price multiples
| Palo Alto Networks Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | Software & Services | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Current share price (P) | $201.28 | ||||||||||||||||||||
| No. shares of common stock outstanding | 668,900,000 | ||||||||||||||||||||
| Growth rate (g) | 14.54% | ||||||||||||||||||||
| Earnings per share (EPS) | $1.70 | ||||||||||||||||||||
| Next year expected EPS | $1.94 | ||||||||||||||||||||
| Operating profit per share | $1.86 | ||||||||||||||||||||
| Sales per share | $13.79 | ||||||||||||||||||||
| Book value per share (BVPS) | $11.70 | ||||||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||||||
| Price to earnings (P/E) | 118.74 | 20.40 | 26.48 | 90.75 | — | 263.15 | 72.80 | 39.63 | 46.94 | 37.62 | 68.20 | 878.79 | 37.26 | 138.29 | 34.40 | 113.07 | 50.52 | 62.01 | |||
| Price to next year expected earnings | 103.67 | 17.32 | 20.02 | 71.62 | — | 263.13 | 34.73 | 39.36 | 41.69 | 29.54 | 24.25 | 1,059.45 | 35.54 | 123.44 | 29.89 | 113.04 | 41.65 | 49.50 | |||
| Price-earnings-growth (PEG) | 8.17 | 1.15 | 0.82 | 3.40 | — | 27,926.82 | 0.66 | 56.70 | 3.73 | 1.38 | 0.38 | — | 7.70 | 11.50 | 2.28 | 4,555.35 | 2.37 | 2.45 | |||
| Price to operating profit (P/OP) | 108.32 | 15.45 | 21.84 | 70.91 | — | 890.75 | 50.89 | 25.45 | 36.89 | 29.80 | 48.01 | 1,308.52 | 32.04 | 144.47 | 57.44 | 143.31 | 41.13 | 48.09 | |||
| Price to sales (P/S) | 14.60 | 2.28 | 6.85 | 20.64 | 28.23 | 18.01 | 21.74 | 3.80 | 9.64 | 13.60 | 14.79 | 141.74 | 6.09 | 17.94 | 12.71 | 7.04 | 12.45 | 12.78 | |||
| Price to book value (P/BV) | 17.21 | 5.24 | 10.44 | 20.50 | 34.03 | 17.81 | — | 8.74 | 9.21 | 11.15 | 41.50 | 81.18 | 3.77 | 20.51 | 8.66 | 6.58 | 14.44 | 18.18 | |||
Based on: 10-K (reporting date: 2025-07-31).
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)
Palo Alto Networks Inc., historical price multiples
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio data is only available from July 31, 2023, onwards. It shows a substantial decrease from 170.35 in 2023 to 42.42 in 2024, indicating an improvement in earnings relative to price or a market adjustment. However, in 2025, the ratio increases sharply to 112.39, suggesting increased market valuation relative to earnings or a potential earnings contraction.
- Price to Operating Profit (P/OP) Ratio
- This ratio is also recorded starting in 2023. It exhibits a downward trend from 193.4 in 2023 to 159.88 in 2024, then further declines to 102.53 in 2025. This consistent decrease may indicate improving operating profit margins relative to market price or a correction in market valuation.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio presents a generally increasing trend over the entire period from July 31, 2020, to July 31, 2025. It starts at 6.66 in 2020, peaks to 10.72 in 2021, dips slightly in 2022 to 9.62, then steadily rises to 10.87 in 2023, 13.62 in 2024, and 13.82 in 2025. This upward movement suggests an increasing market valuation relative to sales, possibly reflecting growing investor confidence or higher expected future sales growth.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio shows significant volatility. It rises sharply from 20.61 in 2020 to an extreme high of 252 in 2022, indicating a high market premium over book value at that point. Subsequently, it declines substantially to 42.84 in 2023, then falls further to 21.15 in 2024 and 16.29 in 2025. This pattern suggests a peak market valuation relative to book value in 2022, followed by a correction or normalization in the subsequent years.
Price to Earnings (P/E)
Palo Alto Networks Inc., historical P/E calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | 578,239,764 | |
| Selected Financial Data (US$) | |||||||
| Net income (loss) (in thousands) | 1,133,900) | 2,577,600) | 439,700) | (267,000) | (498,900) | (267,000) | |
| Earnings per share (EPS)2 | 1.70 | 3.96 | 0.71 | -0.45 | -0.85 | -0.46 | |
| Share price1, 3 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | 39.28 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 112.39 | 42.42 | 170.35 | — | — | — | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Accenture PLC | — | 31.07 | 27.81 | 22.93 | 36.58 | 28.32 | |
| Adobe Inc. | — | 31.98 | 49.64 | 33.15 | 48.90 | 41.69 | |
| Cadence Design Systems Inc. | — | 67.09 | 78.64 | 59.70 | 53.88 | 62.89 | |
| CrowdStrike Holdings Inc. | — | 892.67 | — | — | — | — | |
| Datadog Inc. | — | 235.49 | 884.97 | — | — | — | |
| Fair Isaac Corp. | — | 99.26 | 54.13 | 29.67 | 27.12 | 56.83 | |
| International Business Machines Corp. | — | 39.68 | 22.50 | 71.56 | 19.40 | 19.30 | |
| Intuit Inc. | 48.19 | 58.94 | 64.61 | 57.31 | 75.17 | 49.52 | |
| Microsoft Corp. | 37.46 | 35.67 | 33.96 | 28.34 | 35.14 | 35.04 | |
| Oracle Corp. | 47.60 | 37.63 | 38.96 | 26.85 | 15.84 | 16.69 | |
| Palantir Technologies Inc. | — | 632.38 | 246.77 | — | — | — | |
| Salesforce Inc. | 45.28 | 71.24 | 879.57 | 135.68 | 48.20 | 1,204.70 | |
| ServiceNow Inc. | — | 146.40 | 90.80 | 284.28 | 487.70 | 978.47 | |
| Synopsys Inc. | — | 33.69 | 70.08 | 51.76 | 73.37 | 55.92 | |
| Workday Inc. | 122.85 | 50.53 | — | 1,957.29 | — | — | |
| P/E Ratio, Sector | |||||||
| Software & Services | — | 42.01 | 40.33 | 34.64 | 37.89 | 38.75 | |
| P/E Ratio, Industry | |||||||
| Information Technology | — | 45.22 | 36.08 | 26.90 | 29.67 | 31.25 | |
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income (loss) ÷ No. shares of common stock outstanding
= 1,133,900,000 ÷ 668,900,000 = 1.70
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 190.52 ÷ 1.70 = 112.39
5 Click competitor name to see calculations.
The analysis of the financial data over the periods reveals several key trends and insights regarding the market valuation and profitability of the company.
- Share Price
- The share price has shown a consistent upward trend from US$39.28 as of July 31, 2020, to a projected US$190.52 by July 31, 2025. This represents a substantial increase in market capitalization over the period, indicating growing investor confidence and perceived value in the company.
- Earnings Per Share (EPS)
- The EPS exhibited negative values in the early periods, with -0.46 in 2020 and further decline to -0.85 in 2021. However, a recovery trend is evident from 2022 onwards, moving to -0.45 and then turning positive in 2023 with 0.71. This positive trajectory continues with a peak at 3.96 in 2024 before decreasing to 1.7 in 2025. Such movements suggest an initial phase of losses followed by a period of improving profitability, although some volatility remains in later projections.
- Price-to-Earnings (P/E) Ratio
- P/E ratio data is unavailable for the earlier years but appears from 2023 onward. The ratio stands at a very high 170.35 in 2023, then falls sharply to 42.42 in 2024, followed by an increase to 112.39 in 2025. The elevated P/E ratios suggest that the market is pricing the shares with high growth expectations, although the fluctuation indicates variations in investors' valuation relative to earnings performance.
Overall, the company demonstrates strong market performance with increasing share prices and a transition from losses to profitability. The volatility in EPS and P/E ratios in the later years may reflect uncertainties in sustaining earnings growth, but the general perspective remains optimistic based on market valuation trends.
Price to Operating Profit (P/OP)
Palo Alto Networks Inc., historical P/OP calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | 578,239,764 | |
| Selected Financial Data (US$) | |||||||
| Operating income (loss) (in thousands) | 1,242,900) | 683,900) | 387,300) | (188,800) | (304,100) | (179,000) | |
| Operating profit per share2 | 1.86 | 1.05 | 0.63 | -0.32 | -0.52 | -0.31 | |
| Share price1, 3 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | 39.28 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 102.53 | 159.88 | 193.40 | — | — | — | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Accenture PLC | — | 23.52 | 21.69 | 16.83 | 28.35 | 22.21 | |
| Adobe Inc. | — | 26.38 | 40.52 | 25.85 | 40.64 | 51.75 | |
| Cadence Design Systems Inc. | — | 52.42 | 65.43 | 47.21 | 48.13 | 57.54 | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | |
| Datadog Inc. | — | 797.11 | — | — | — | — | |
| Fair Isaac Corp. | — | 69.38 | 36.15 | 20.43 | 21.03 | 45.39 | |
| International Business Machines Corp. | — | 25.48 | 17.99 | 14.35 | 16.23 | 15.90 | |
| Intuit Inc. | 37.87 | 48.11 | 49.04 | 46.05 | 62.00 | 41.56 | |
| Microsoft Corp. | 29.68 | 28.73 | 27.76 | 24.72 | 30.79 | 29.30 | |
| Oracle Corp. | 33.50 | 25.65 | 25.30 | 16.51 | 14.31 | 12.17 | |
| Palantir Technologies Inc. | — | 941.61 | 431.61 | — | — | — | |
| Salesforce Inc. | 38.94 | 58.80 | 177.62 | 357.52 | 431.39 | 511.08 | |
| ServiceNow Inc. | — | 152.95 | 206.26 | 260.26 | 436.46 | 583.07 | |
| Synopsys Inc. | — | 56.25 | 67.90 | 43.85 | 75.64 | 59.90 | |
| Workday Inc. | 155.71 | 381.31 | — | — | — | — | |
| P/OP Ratio, Sector | |||||||
| Software & Services | — | 34.21 | 32.31 | 27.45 | 33.99 | 32.15 | |
| P/OP Ratio, Industry | |||||||
| Information Technology | — | 35.07 | 30.05 | 22.83 | 26.20 | 27.05 | |
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 1,242,900,000 ÷ 668,900,000 = 1.86
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 190.52 ÷ 1.86 = 102.53
5 Click competitor name to see calculations.
The share price exhibited a continuous upward trend over the analyzed period, beginning at $39.28 in July 2020 and rising steadily each year to reach $190.52 by July 2025. This indicates significant market confidence or growth expectations.
Operating profit per share started negative, at -$0.31 in 2020, further declining to -$0.52 in 2021, suggesting operational losses during these years. However, a recovery phase is evident from 2022 onward, with a reduction in losses to -$0.32, followed by a positive turnaround to $0.63 in 2023. This improvement continued, with operating profit per share increasing to $1.05 in 2024 and $1.86 in 2025, reflecting improved operational efficiency and profitability.
The Price to Operating Profit (P/OP) ratio was not reported for the initial years but appears starting in 2023, with notably high values of 193.4, decreasing to 159.88 in 2024 and further to 102.53 in 2025. Although the ratio remains elevated, the downward trend suggests an improving valuation relative to operating profits, potentially indicating that the market is beginning to recognize the growing profitability of the company with less speculative premium.
Price to Sales (P/S)
Palo Alto Networks Inc., historical P/S calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | 578,239,764 | |
| Selected Financial Data (US$) | |||||||
| Revenue (in thousands) | 9,221,500) | 8,027,500) | 6,892,700) | 5,501,500) | 4,256,100) | 3,408,400) | |
| Sales per share2 | 13.79 | 12.33 | 11.17 | 9.19 | 7.28 | 5.89 | |
| Share price1, 3 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | 39.28 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 13.82 | 13.62 | 10.87 | 9.62 | 10.72 | 6.66 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Accenture PLC | — | 3.48 | 2.98 | 2.56 | 4.28 | 3.26 | |
| Adobe Inc. | — | 8.27 | 13.88 | 8.95 | 14.94 | 17.04 | |
| Cadence Design Systems Inc. | — | 15.26 | 20.02 | 14.23 | 12.55 | 13.85 | |
| CrowdStrike Holdings Inc. | 19.36 | 26.10 | 12.81 | 30.15 | 48.70 | 22.79 | |
| Datadog Inc. | — | 16.12 | 20.19 | 14.64 | 49.25 | 49.57 | |
| Fair Isaac Corp. | — | 29.64 | 15.36 | 8.05 | 8.08 | 10.38 | |
| International Business Machines Corp. | — | 3.81 | 2.73 | 1.94 | 1.94 | 1.47 | |
| Intuit Inc. | 9.90 | 10.72 | 10.72 | 9.30 | 16.09 | 11.78 | |
| Microsoft Corp. | 13.54 | 12.82 | 11.60 | 10.40 | 12.81 | 10.85 | |
| Oracle Corp. | 10.32 | 7.44 | 6.63 | 4.25 | 5.38 | 4.33 | |
| Palantir Technologies Inc. | — | 102.00 | 23.27 | 9.34 | 15.58 | 39.86 | |
| Salesforce Inc. | 7.40 | 8.45 | 5.84 | 7.40 | 9.24 | 8.88 | |
| ServiceNow Inc. | — | 18.99 | 17.52 | 12.75 | 19.02 | 25.66 | |
| Synopsys Inc. | — | 12.45 | 14.75 | 10.03 | 13.22 | 10.08 | |
| Workday Inc. | 7.65 | 9.61 | 7.71 | 11.19 | 13.95 | 10.65 | |
| P/S Ratio, Sector | |||||||
| Software & Services | — | 10.35 | 8.82 | 7.49 | 9.56 | 7.75 | |
| P/S Ratio, Industry | |||||||
| Information Technology | — | 9.32 | 7.35 | 6.02 | 7.00 | 6.13 | |
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 9,221,500,000 ÷ 668,900,000 = 13.79
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 190.52 ÷ 13.79 = 13.82
5 Click competitor name to see calculations.
The financial data exhibits several notable trends over the six-year period analyzed.
- Share Price
- The share price has shown a consistent upward trajectory from $39.28 in 2020 to $190.52 in 2025. This represents a substantial increase, nearly fivefold, indicating strong market confidence and positive investor sentiment over the period.
- Sales per Share
- Sales per share have also exhibited steady growth, moving from $5.89 in 2020 to $13.79 in 2025. This increase reflects improving revenue generation relative to the number of shares outstanding, suggesting enhanced operational performance or successful expansion efforts.
- Price-to-Sales (P/S) Ratio
- The P/S ratio demonstrates some variability but generally trends upward from 6.66 in 2020 to 13.82 in 2025. This increase suggests that investors are willing to pay more for each dollar of sales over time, potentially reflecting expectations of higher future growth or profitability. Notably, a peak occurs in 2021 at 10.72, followed by a slight dip in 2022 (9.62), before rising again in subsequent years, indicating fluctuating market perceptions or short-term corrections.
Overall, the data indicates robust growth in market valuation and sales efficiency, supported by a rising valuation multiple that underscores elevated investor expectations. The trends suggest confidence in the company’s growth prospects and financial strength.
Price to Book Value (P/BV)
Palo Alto Networks Inc., historical P/BV calculation, comparison to benchmarks
| Jul 31, 2025 | Jul 31, 2024 | Jul 31, 2023 | Jul 31, 2022 | Jul 31, 2021 | Jul 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 668,900,000 | 651,200,000 | 617,189,208 | 598,427,616 | 584,436,678 | 578,239,764 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in thousands) | 7,824,400) | 5,169,700) | 1,748,400) | 210,000) | 634,500) | 1,101,800) | |
| Book value per share (BVPS)2 | 11.70 | 7.94 | 2.83 | 0.35 | 1.09 | 1.91 | |
| Share price1, 3 | 190.52 | 167.91 | 121.36 | 88.43 | 78.04 | 39.28 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 16.29 | 21.15 | 42.84 | 252.00 | 71.88 | 20.61 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Accenture PLC | — | 7.98 | 7.44 | 7.13 | 11.06 | 8.51 | |
| Adobe Inc. | — | 12.61 | 16.31 | 11.22 | 15.94 | 16.53 | |
| Cadence Design Systems Inc. | — | 15.15 | 24.05 | 18.46 | 13.68 | 14.90 | |
| CrowdStrike Holdings Inc. | 23.34 | 34.61 | 19.61 | 42.67 | 48.91 | 14.78 | |
| Datadog Inc. | — | 15.94 | 21.22 | 17.39 | 48.66 | 31.25 | |
| Fair Isaac Corp. | — | — | — | — | — | 40.58 | |
| International Business Machines Corp. | — | 8.75 | 7.49 | 5.34 | 5.90 | 5.24 | |
| Intuit Inc. | 9.46 | 9.47 | 8.92 | 7.20 | 15.71 | 17.71 | |
| Microsoft Corp. | 11.11 | 11.71 | 11.92 | 12.38 | 15.16 | 13.11 | |
| Oracle Corp. | 28.96 | 45.25 | 308.71 | — | 41.57 | 14.01 | |
| Palantir Technologies Inc. | — | 58.42 | 14.90 | 6.94 | 10.48 | 28.60 | |
| Salesforce Inc. | 4.59 | 4.94 | 3.13 | 3.37 | 4.73 | 4.48 | |
| ServiceNow Inc. | — | 21.71 | 20.60 | 18.36 | 30.36 | 40.91 | |
| Synopsys Inc. | — | 8.48 | 14.02 | 9.24 | 10.50 | 7.57 | |
| Workday Inc. | 7.15 | 8.63 | 8.58 | 12.68 | 18.38 | 15.54 | |
| P/BV Ratio, Sector | |||||||
| Software & Services | — | 12.01 | 11.49 | 10.76 | 13.72 | 11.72 | |
| P/BV Ratio, Industry | |||||||
| Information Technology | — | 13.25 | 11.52 | 10.50 | 12.57 | 11.14 | |
Based on: 10-K (reporting date: 2025-07-31), 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 7,824,400,000 ÷ 668,900,000 = 11.70
3 Closing price as at the filing date of Palo Alto Networks Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 190.52 ÷ 11.70 = 16.29
5 Click competitor name to see calculations.
- Share Price
- The share price exhibits a clear upward trend over the entire period. It starts at $39.28 in 2020 and increases steadily each year, reaching $190.52 by 2025. This reflects significant market confidence and suggests strong performance or positive future expectations.
- Book Value Per Share (BVPS)
- BVPS shows more variability compared to the share price. It begins at $1.91 in 2020, then declines for two consecutive years to a low of $0.35 in 2022. From 2023 onward, BVPS increases sharply to reach $11.7 in 2025, indicating improvements in the company's net asset value or equity base in the later years.
- Price-to-Book Value Ratio (P/BV)
- P/BV ratio demonstrates significant volatility. It starts at 20.61 in 2020 and spikes drastically to 252 in 2022, largely due to the low BVPS in that year combined with rising share price. Following 2022, the ratio declines progressively to 16.29 in 2025, suggesting that the growth in book value has outpaced the share price increase during this period, thereby indicating a valuation becoming more aligned with the company's net assets.