Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
Paying user area
Try for free
Allergan Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Allergan Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Historical Valuation Ratios (Summary)
Allergan Inc., historical price multiples (quarterly data)
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
The financial ratios over the analyzed periods indicate several notable trends. The Price to Earnings (P/E) ratio shows substantial fluctuations, with an initial very high value in March 2011, followed by a decrease and stabilization in subsequent quarters. From early 2012 onwards, the P/E ratio exhibits a pattern of gradual increase, reaching a peak by the end of 2014, reflecting possibly growing investor expectations or changes in earnings.
The Price to Operating Profit (P/OP) ratio demonstrates considerable variability as well. It peaks notably in the second quarter of 2011 before decreasing sharply by the end of that year. Afterward, the ratio stabilizes at lower values early in 2012 but resumes an upward trend from late 2013 into 2014, suggesting changes in operating profitability relative to price.
The Price to Sales (P/S) ratio evidences a consistent upward trajectory throughout the period. Starting from around 4.6 in mid-2010, the ratio rises steadily to nearly 9.7 by the end of 2014. This increase suggests that market valuation has grown faster than sales revenue, potentially indicating heightened investor optimism or expectations of future growth.
The Price to Book Value (P/BV) ratio remains relatively stable in the earlier years but starts increasing notably from 2013 onward. The values rise from approximately 4.6 in late 2012 to nearly 9 by the end of 2014. This rise points to an increasing market premium on the company's net asset value.
- Summary of Trends
- The ratios reveal growing market valuation metrics relative to earnings, operating profit, sales, and book value over the observed period. While earnings and operating profit multiples show some volatility, price to sales and price to book value ratios consistently increase, indicating enhanced investor confidence in the company's revenue generation and asset base.
- The P/E ratio's volatility, especially the extremely high value recorded in early 2011, suggests that earnings may have experienced irregularities or that the market reacted strongly to specific events during that time.
- The gradual increase in valuation multiples towards the end of the period, especially in 2014, points to a favorable market sentiment regarding the company's financial health or growth prospects.
Price to Earnings (P/E)
Allergan Inc., historical P/E calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | Mar 31, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Net earnings (loss) attributable to Allergan, Inc. (in thousands) | ||||||||||||||||||||||||||
| Earnings per share (EPS)2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/E ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
EPS
= (Net earnings (loss) attributable to Allergan, Inc.Q4 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q3 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q2 2014
+ Net earnings (loss) attributable to Allergan, Inc.Q1 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a generally upward trajectory over the observed periods from March 31, 2010, to December 31, 2014. It began at $59.31 and increased steadily, with occasional fluctuations, reaching $231.12 by the end of 2014. Notable periods of accelerated growth occurred in late 2013 and throughout 2014, where the price rose sharply from around $89 to over $230, indicating strong market confidence or positive company developments during this timeframe.
- Earnings Per Share (EPS) Development
- EPS values were unavailable for the early periods in 2010, but beginning in December 2010, a loss or minimal earnings were recorded, transitioning to positive and progressively rising earnings in subsequent years. From March 2011 onward, EPS rose from values near zero and occasional slight negative figures to a more consistent and robust growth trend, reaching $5.08 by December 2014. This improvement in profitability per share suggests strengthening financial performance and operational efficiency over time.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio showed considerable volatility initially, with an extremely high value early on (over 37,000) likely due to negligible or negative earnings, making valuation metrics less meaningful. Subsequently, it stabilized to more typical values ranging from approximately 24 to 45. Towards the end of the period, P/E ratios increased substantially, reaching above 45 by late 2014. This rising P/E, alongside increasing share prices and EPS, could indicate growing market expectations of future earnings growth or premium valuation placed on the company.
- Overall Financial Insights
- The data indicates a company transitioning from a phase of uncertain or minimal profitability to a period of sustained earnings growth and corresponding share price appreciation. Share price increases were accompanied by rising EPS, reinforcing the narrative of improved financial health. The elevated and increasing P/E ratios suggest heightened investor optimism and possibly a market premium applied to anticipated future performance. Caution should be exercised due to periodic volatility and the significant jumps in valuation metrics.
Price to Operating Profit (P/OP)
Allergan Inc., historical P/OP calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | Mar 31, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Operating income (loss) (in thousands) | ||||||||||||||||||||||||||
| Operating profit per share2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/OP ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
Operating profit per share
= (Operating income (loss)Q4 2014
+ Operating income (loss)Q3 2014
+ Operating income (loss)Q2 2014
+ Operating income (loss)Q1 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited an overall upward trend from March 2010 through December 2014, despite some periods of volatility. Initially, the share price rose steadily from $59.31 in March 2010 to $88.82 by December 2011. After reaching $107.05 in December 2012, there was a brief decline during 2013, with prices dipping to as low as $89.24 in September 2013. However, from late 2013 onwards, the share price increased significantly, peaking at $231.12 in December 2014. This reflects strong market confidence and positive valuation momentum during the final year of the period.
Operating profit per share, beginning from December 2010 due to missing earlier data, showed consistent growth over the observed quarters. Starting at $0.85 in December 2010, it rose steadily with minor fluctuations to reach $6.69 by December 2014. This progressive increase in operating profit per share indicates improving operational efficiency and profitability.
The price to operating profit (P/OP) ratio presents a different pattern, reflecting market valuation relative to operating earnings. Early in the period (from March 2011), the ratio was high, peaking at 96.58 in June 2011, indicating investors were paying a premium relative to operating profit. There was a significant decrease in this ratio by December 2011 to 19.28, suggesting either a correction in price valuations or a substantial increase in operating profit per share. Throughout 2012 and 2013, the P/OP ratio remained relatively stable, fluctuating between approximately 14.57 and 20.71, which may signal a more balanced equilibrium between price and operational earnings.
From March 2014 onward, the P/OP ratio increased notably, reaching 34.53 by December 2014. This uptick indicates that the share price growth outpaced the growth in operating profit per share during this period, potentially reflecting heightened market expectations or speculative factors influencing the valuation.
In summary, the data reveals a consistent improvement in operating profitability alongside a generally rising share price. However, the growing P/OP ratio towards the end of the period suggests a divergence where market valuations accelerated faster than earnings growth, warranting further investigation into the drivers behind investor optimism during late 2014.
- Share Price Trend
- Steady growth from $59.31 to $231.12 over five years, with minor dips notably in 2013.
- Operating Profit Per Share
- Continuous increase from $0.85 in late 2010 to $6.69 in late 2014, reflecting improved profitability.
- Price to Operating Profit Ratio (P/OP)
- High initial levels around 80-90, sharp decline by end of 2011, stable mid-range in 2012-2013, then rising again in 2014, reaching over 30.
- Interpretation
- The consistent operating profit growth supports the rising share price, but the later increase in P/OP ratio suggests higher market expectations beyond earnings gains.
Price to Sales (P/S)
Allergan Inc., historical P/S calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | Mar 31, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Product net sales (in thousands) | ||||||||||||||||||||||||||
| Sales per share2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/S ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
Sales per share
= (Product net salesQ4 2014
+ Product net salesQ3 2014
+ Product net salesQ2 2014
+ Product net salesQ1 2014)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited a consistent upward trend from March 31, 2010, through December 31, 2014. Initially, the share price increased steadily from $59.31 to $72.90 in 2010. A notable acceleration in appreciation occurred after December 2012, with the share price growing from $107.05 to $231.12 by the end of 2014. During this period, fluctuations were observed, but these did not alter the overarching increasing trend.
Sales per share data became available beginning in March 31, 2011, and demonstrated gradual growth over the analyzed quarters. Starting at $15.77 in Q1 2011, sales per share increased steadily each quarter, reaching $23.73 by the end of 2014. This indicates consistent expansion in sales relative to the share count over the observed period.
The Price-to-Sales (P/S) ratio showed variability throughout the quarters but generally indicated an increasing valuation multiple over the later periods. From a P/S ratio of 4.62 at the start of sales data in early 2011, the ratio fluctuated moderately until late 2012. Subsequently, a marked rise occurred, with the P/S ratio increasing from approximately 5.59 in early 2013 to 9.74 by the close of 2014. This suggests that the market placed a progressively higher value on sales generated, possibly reflecting expectations of future growth or improved profitability.
In summary, the analyzed financial metrics illustrate a company experiencing steady sales growth accompanied by a significant appreciation in share price. The increasing P/S multiples in the final years indicate rising market optimism or enhanced earnings prospects, despite some interim fluctuations in stock price. This combination of factors points toward an overall strengthening market position and improving investor sentiment during the period under review.
- Share Price Trend
- Consistent increase from $59.31 to $231.12 over five years, with accelerated growth post-2012.
- Sales Per Share
- Gradual but steady increase from $15.77 in early 2011 to $23.73 by end 2014.
- Price-to-Sales Ratio
- Initially stable with moderate fluctuations, rising sharply from early 2013 through 2014, reaching up to 9.74.
Price to Book Value (P/BV)
Allergan Inc., historical P/BV calculation (quarterly data)
| Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | Dec 31, 2010 | Sep 30, 2010 | Jun 30, 2010 | Mar 31, 2010 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||
| Total Allergan, Inc. stockholders’ equity (in thousands) | ||||||||||||||||||||||||||
| Book value per share (BVPS)2 | ||||||||||||||||||||||||||
| Share price1, 3 | ||||||||||||||||||||||||||
| Valuation Ratio | ||||||||||||||||||||||||||
| P/BV ratio4 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31), 10-K (reporting date: 2010-12-31), 10-Q (reporting date: 2010-09-30), 10-Q (reporting date: 2010-06-30), 10-Q (reporting date: 2010-03-31).
1 Data adjusted for splits and stock dividends.
2 Q4 2014 Calculation
BVPS = Total Allergan, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Allergan Inc. Quarterly or Annual Report.
4 Q4 2014 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a general upward trajectory over the five-year period, rising from $59.31 at the end of Q1 2010 to $231.12 by the close of Q4 2014. Notably, there were periods of volatility, such as a decline from $93.74 in Q1 2012 to $85.41 in Q2 2012, followed by a strong recovery that peaked at $125.54 in Q4 2013. The most pronounced increase occurred in 2014, where the share price surged from $165.87 in Q1 to $231.12 in Q4, reflecting robust market confidence during that year.
- Book Value Per Share (BVPS) Trend
- The book value per share showed a steady and moderate increase throughout the analyzed timeframe, starting at $16.26 in Q1 2010 and reaching $25.82 in Q4 2014. This upward progression indicates consistent growth in the company's net asset value per share, suggesting a strengthening of the balance sheet over time. No significant declines were observed, with only slight fluctuations around $18 to $20 per share during 2012 and early 2013.
- Price-to-Book Value Ratio (P/BV) Trend
- The P/BV ratio demonstrated variability with a general increasing pattern, indicating changes in market valuation relative to the company's book value. Initially, the ratio ranged between 3.65 and 5.08 from 2010 through 2011, reflecting moderate market valuation. In 2012 and 2013, values fluctuated more broadly from 4.69 up to 5.82, suggesting periods of investor reassessment. In 2014, the P/BV ratio escalated significantly from 5.8 in Q1 to as high as 8.95 in Q4, indicating elevated investor optimism and possibly expectations of higher future growth relative to book value.
- Overall Insights
- Over the entire period, the steady increase in book value per share coupled with a much sharper rise in share price led to an expanding P/BV ratio. This divergence highlights that the market valuation grew at a faster pace than the underlying net assets, reflective of heightened investor demand or anticipation of enhanced earnings potential. The marked increase in share price and P/BV during 2014 suggests a phase of accelerated market confidence and optimism about the company's prospects at that time. Periodic fluctuations in the P/BV ratio indicate changing investor perceptions, but the consistent book value growth underpins a solid financial foundation.