Shockwave Medical Inc. (NASDAQ:SWAV)

The financial ratios presented demonstrate notable fluctuations over the five-year period, reflecting changing market perceptions and company performance metrics.

Price to Earnings (P/E) Ratio

This ratio is only available for the last two years, showing a significant increase from 32.02 in 2022 to 65.99 in 2023. This sharp rise could indicate growing investor expectations for future earnings growth or possibly a higher share price relative to earnings obtained.

Price to Operating Profit (P/OP) Ratio

Data for this ratio is also limited to 2022 and 2023. There is a moderate increase from 55.72 to 61.09, suggesting that the market values operating profit more highly relative to the past year, potentially reflecting operational improvements or optimistic forecasts.

Price to Sales (P/S) Ratio

The P/S ratio exhibits a volatile pattern, initially rising sharply from 21.46 in 2019 to an extreme high of 60.01 in 2020, followed by a decline in subsequent years to 26.4 in 2021, then further down to 14.12 in 2022, and a slight decrease to 13.31 in 2023. This trend indicates a peak valuation relative to sales in 2020, possibly driven by market speculation or revenue expectations, before a reversion to more moderate valuation multiples.

Price to Book Value (P/BV) Ratio

The P/BV ratio rose sharply from 4.78 in 2019 to 18.03 in 2020, continuing to increase up to a peak of 25.89 in 2021, then dropping significantly to 13.53 in 2022 with a small rise to 14.53 in 2023. This pattern suggests substantial growth in market valuation relative to book value until 2021, followed by a correction phase, potentially related to changes in asset valuations or market sentiment.

Overall, the data highlights a period of heightened valuation multiples around 2020 to 2021, followed by declines or stabilizations in most ratios, except for the P/E and P/OP ratios that increased in the last observed year. This could reflect evolving investor confidence, operational performance, and shifts in market conditions impacting the valuation framework for the company.

Share Price

The share price demonstrated a clear upward trend over the period under review. Starting at a modest level, it increased substantially by the year ending 2020, followed by further appreciable growth in 2021, 2022, and 2023. This steady rise suggests increasing investor confidence and possibly improved market perceptions of the company's value.

Earnings per Share (EPS)

EPS exhibited significant fluctuations over the analyzed years. Initially, the company reported negative earnings per share in 2019 and 2020, indicating losses during these periods. A notable turnaround occurred in 2021, with EPS improving dramatically to a near break-even level. In 2022, EPS became strongly positive, signaling a substantial profitability surge, although a decline was observed in 2023, the value remaining positive but lower than the previous year.

Price-to-Earnings (P/E) Ratio

P/E ratio values were only available for the last two years. The ratio was 32.02 in 2022 and increased to 65.99 in 2023. This upward movement implies that the market price was growing at a faster pace than earnings, possibly indicating higher growth expectations or increased valuation multiples attributed to the company despite the EPS decline in 2023.

Share Price

The share price exhibited a substantial upward trend from 29 US dollars in 2019 to 259.89 US dollars in 2023. Notable increments are observed particularly between 2019 and 2020, and again from 2022 to 2023, indicating strong market confidence and growth in perceived company value over the five-year period.

Operating Profit Per Share

The operating profit per share displayed a significant improvement over the period. Initial figures show negative values, starting at -1.63 US dollars in 2019 and reaching -1.88 US dollars in 2020, indicating operating losses. A marked positive shift occurs in 2021, moving to near break-even at -0.02 US dollars. Subsequently, the figure turns positive and rises to 3.4 US dollars in 2022 and 4.25 US dollars in 2023, reflecting increasing operational profitability and efficiency.

Price to Operating Profit Ratio (P/OP)

This ratio was not available for the years prior to 2021 but is presented for the last two years in the data. In 2022, the ratio stood at 55.72 and increased slightly to 61.09 in 2023. The high ratio values suggest that the stock price is significantly higher than the operating profits per share might imply, which could indicate market expectations of future growth or potentially an overvaluation relative to current profitability.

The share price of the company exhibited significant volatility over the analyzed period. Starting at $29 in 2019, it surged notably to $116.76 in 2020 and then continued to rise to $175.59 in 2021. In 2022, the price showed a modest increase to $189.52, followed by a substantial jump to $259.89 in 2023, indicating strong market confidence and robust valuation growth in recent years.

Sales per share demonstrated an impressive upward trajectory throughout the period. Beginning at $1.35 in 2019, sales per share increased steadily to $1.95 in 2020, then rose sharply to $6.65 in 2021. This growth accelerated further in 2022 and 2023, reaching $13.42 and $19.53 respectively. The consistent increase in sales per share highlights strong revenue growth and operational expansion.

The price-to-sales (P/S) ratio displayed a declining trend despite fluctuations in share price and sales per share. Initially, the P/S ratio was relatively high at 21.46 in 2019 and peaked dramatically at 60.01 in 2020. Following this peak, the ratio decreased to 26.4 in 2021, then continued to decline to 14.12 in 2022, and further to 13.31 in 2023. This decline suggests that while the share price increased, sales growth outpaced price increases, resulting in a more attractive valuation relative to sales by the end of the period.

Overall, the data reflects a company that has achieved substantial growth in sales per share, accompanied by a rising share price and a falling P/S ratio. This combination suggests improving market valuation grounded in strong sales performance, potentially indicating enhanced investor confidence and operational scalability.

Share Price

The share price experienced a substantial increase from $29 in 2019 to $116.76 in 2020, followed by a steady rise to $175.59 in 2021. Subsequently, a moderate increase was observed, reaching $189.52 in 2022 and further climbing to $259.89 in 2023. This indicates strong market performance and growing investor confidence over the five-year period.

Book Value Per Share (BVPS)

The book value per share showed a consistent upward trend throughout the analyzed years. Starting at $6.06 in 2019, it increased slightly to $6.48 in 2020 and $6.78 in 2021. A more pronounced rise occurred in 2022, with BVPS reaching $14.01, and continued growth to $17.88 in 2023, reflecting the company's improving net asset base relative to outstanding shares.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio exhibited significant volatility. It was 4.78 in 2019, surged sharply to 18.03 in 2020, and further increased to a peak of 25.89 in 2021. This was followed by a decline to 13.53 in 2022 and a slight increase to 14.53 in 2023. The initial surge suggests heightened market expectations or overvaluation relative to book value during the earlier years, while the decreasing trend post-2021 may indicate market correction or improved book value performance.