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
Boston Scientific Corp., current price multiples
| Boston Scientific Corp. | Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | $51.94 | |||||||||||
| No. shares of common stock outstanding | 1,437,698,101 | |||||||||||
| Growth rate (g) | 11.55% | |||||||||||
| Earnings per share (EPS) | $0.45 | |||||||||||
| Next year expected EPS | $0.50 | |||||||||||
| Operating profit per share | $1.15 | |||||||||||
| Sales per share | $8.82 | |||||||||||
| Book value per share (BVPS) | $12.22 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | 116.31 | 17.41 | 18.26 | 13.23 | 83.42 | 24.26 | 19.37 | 22.54 | 22.23 | |||
| Price to next year expected earnings | 104.27 | 15.84 | 17.48 | 11.81 | 73.81 | 23.89 | 16.84 | 20.59 | 20.16 | |||
| Price-earnings-growth (PEG) | 10.07 | 1.75 | 4.09 | 1.09 | 6.41 | 15.50 | 1.29 | 2.37 | 2.17 | |||
| Price to operating profit (P/OP) | 45.28 | 34.19 | 9.89 | 10.87 | 82.49 | 18.99 | 8.64 | 16.50 | 17.17 | |||
| Price to sales (P/S) | 5.89 | 5.56 | 0.23 | 0.45 | 23.20 | 3.37 | 0.71 | 1.12 | 2.58 | |||
| Price to book value (P/BV) | 4.25 | 4.90 | 1.12 | 1.92 | 11.79 | 2.36 | 3.01 | 3.44 | 5.10 | |||
Based on: 10-K (reporting date: 2022-12-31).
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)
Boston Scientific Corp., historical price multiples
Based on: 10-K (reporting date: 2022-12-31), 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).
- Price to Earnings (P/E) Ratio
- The P/E ratio shows significant volatility over the observed period. Initially, it declined sharply from 33.06 in 2018 to 11.86 in 2019, indicating a lower market valuation relative to earnings. The absence of data for 2020 limits analysis for that year. However, the ratio surged dramatically to 63.31 in 2021 and further increased to 105.44 in 2022, suggesting a substantial rise in market expectations or a potential decrease in earnings during these years.
- Price to Operating Profit (P/OP) Ratio
- This ratio remained relatively stable in 2018 and 2019 at around 36.7, implying consistent valuation relative to operating profit in these years. Data for 2020 is missing. The ratio then increased sharply to 52.01 in 2021, pointing to a higher price relative to operating profit, before declining to 41.05 in 2022, indicating a partial reversal but still elevated valuation compared to the early years.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrated modest fluctuation throughout the period. It began at 5.62 in 2018, decreased slightly to 5.19 in 2019, and then increased to 5.54 in 2020. It declined again in 2021 to 5.25, followed by a slight increase to 5.34 in 2022. Overall, the ratio remained within a narrow band, suggesting relatively stable market valuation in relation to sales.
- Price to Book Value (P/BV) Ratio
- This ratio displayed a clear downward trend from 6.33 in 2018 to 3.58 in 2020, indicating a decreasing market valuation relative to book value over these years. It showed a slight recovery in 2021 and 2022 to levels of 3.75 and 3.85 respectively, suggesting a modest improvement or stabilization in market perception of the company's net asset value.
Price to Earnings (P/E)
Boston Scientific Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,434,780,104 | 1,426,724,712 | 1,417,165,707 | 1,396,195,349 | 1,385,961,926 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) available to common stockholders (in millions) | 642) | 985) | (115) | 4,700) | 1,671) | |
| Earnings per share (EPS)2 | 0.45 | 0.69 | -0.08 | 3.37 | 1.21 | |
| Share price1, 3 | 47.18 | 43.71 | 38.75 | 39.91 | 39.86 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 105.44 | 63.31 | — | 11.86 | 33.06 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 26.76 | 29.13 | 48.49 | — | — | |
| CVS Health Corp. | 27.53 | 17.39 | 12.88 | — | — | |
| Elevance Health Inc. | 19.20 | 18.13 | 15.87 | — | — | |
| Intuitive Surgical Inc. | 64.99 | 59.94 | 87.47 | — | — | |
| Medtronic PLC | 23.38 | 46.56 | 26.30 | — | — | |
| UnitedHealth Group Inc. | 22.46 | 26.03 | 20.54 | — | — | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 24.57 | 26.88 | 24.48 | — | — | |
| P/E Ratio, Industry | ||||||
| Health Care | 21.38 | 21.35 | 30.75 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income (loss) available to common stockholders ÷ No. shares of common stock outstanding
= 642,000,000 ÷ 1,434,780,104 = 0.45
3 Closing price as at the filing date of Boston Scientific Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 47.18 ÷ 0.45 = 105.44
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a relatively stable trend from 2018 through 2020, fluctuating slightly between approximately $38 and $40. A notable increase occurred in 2021, reaching $43.71, followed by a further rise to $47.18 in 2022. This upward movement in the latter years suggests growing investor confidence or improved market perception.
- Earnings Per Share (EPS)
- EPS experienced significant volatility over the analyzed period. After a moderate value of $1.21 in 2018, EPS rose sharply to $3.37 in 2019. However, 2020 saw a negative EPS of -$0.08, indicating a net loss for that year. The company returned to positive EPS in 2021 with $0.69 and slightly declined to $0.45 in 2022. This pattern reflects considerable fluctuations in profitability, including a challenging year in 2020, followed by partial recovery.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio generally followed an inverse trend relative to EPS. It decreased from 33.06 in 2018 to a low of 11.86 in 2019, coinciding with the EPS peak that year. The absence of data for 2020 likely corresponds to the negative EPS, as P/E ratios are typically undefined or not meaningful during net losses. The ratio then surged to 63.31 in 2021 and escalated further to 105.44 in 2022, reflecting higher market valuations relative to earnings and possibly market optimism despite the lower EPS figures in these years.
Price to Operating Profit (P/OP)
Boston Scientific Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,434,780,104 | 1,426,724,712 | 1,417,165,707 | 1,396,195,349 | 1,385,961,926 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | 1,649) | 1,199) | (80) | 1,518) | 1,506) | |
| Operating profit per share2 | 1.15 | 0.84 | -0.06 | 1.09 | 1.09 | |
| Share price1, 3 | 47.18 | 43.71 | 38.75 | 39.91 | 39.86 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 41.05 | 52.01 | — | 36.71 | 36.68 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 22.18 | 24.45 | 40.69 | — | — | |
| CVS Health Corp. | 14.75 | 10.43 | 6.65 | — | — | |
| Elevance Health Inc. | 15.05 | 15.70 | 12.10 | — | — | |
| Intuitive Surgical Inc. | 54.49 | 56.11 | 88.37 | — | — | |
| Medtronic PLC | 20.48 | 37.44 | 26.29 | — | — | |
| UnitedHealth Group Inc. | 15.89 | 18.77 | 14.12 | — | — | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 17.98 | 19.92 | 17.16 | — | — | |
| P/OP Ratio, Industry | ||||||
| Health Care | 16.51 | 17.67 | 22.32 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= 1,649,000,000 ÷ 1,434,780,104 = 1.15
3 Closing price as at the filing date of Boston Scientific Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 47.18 ÷ 1.15 = 41.05
5 Click competitor name to see calculations.
The financial data reveals several key trends over the examined five-year period.
- Share Price
- The share price exhibits a generally upward trend from 2018 to 2022. Starting at $39.86 in 2018, it remains relatively stable through 2019 and 2020 with a slight dip in 2020 to $38.75. From 2021 onwards, the share price increases more noticeably, reaching $43.71 in 2021 and $47.18 in 2022. This indicates growing market confidence or positive valuation adjustments over the latter two years.
- Operating Profit Per Share
- The operating profit per share displays some volatility during the period. It remains steady at $1.09 in both 2018 and 2019. However, in 2020, it experiences a sharp decline, falling into negative territory at -$0.06, indicative of operational challenges or significant expenses that year. Recovery is observed starting in 2021 with a return to profitability at $0.84, followed by a further increase to $1.15 in 2022, surpassing pre-2020 levels.
- Price to Operating Profit Ratio (P/OP)
- The price to operating profit ratio shows notable fluctuation. It is stable around 36.68 to 36.71 in 2018 and 2019. Due to the negative operating profit per share in 2020, the P/OP ratio is not available for that year. In 2021, the ratio peaks at 52.01, a significant increase suggesting that the share price had risen disproportionately compared to operating profits. By 2022, the ratio decreases to 41.05, indicating a partial realignment between price and operating profitability but remaining higher than the initial years.
Overall, the data reflects a company experiencing operational difficulties in 2020, impacting profitability, but demonstrates recovery and growth in subsequent years. The share price growth coupled with recovering operating profit per share suggests improving financial performance and investor sentiment, although valuation metrics like P/OP indicate some discrepancy in how the market values these profits over time.
Price to Sales (P/S)
Boston Scientific Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,434,780,104 | 1,426,724,712 | 1,417,165,707 | 1,396,195,349 | 1,385,961,926 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in millions) | 12,682) | 11,888) | 9,913) | 10,735) | 9,823) | |
| Sales per share2 | 8.84 | 8.33 | 6.99 | 7.69 | 7.09 | |
| Share price1, 3 | 47.18 | 43.71 | 38.75 | 39.91 | 39.86 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 5.34 | 5.25 | 5.54 | 5.19 | 5.62 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.25 | 4.78 | 6.30 | — | — | |
| CVS Health Corp. | 0.36 | 0.47 | 0.35 | — | — | |
| Elevance Health Inc. | 0.74 | 0.81 | 0.60 | — | — | |
| Intuitive Surgical Inc. | 13.81 | 17.89 | 21.29 | — | — | |
| Medtronic PLC | 3.72 | 5.57 | 4.36 | — | — | |
| UnitedHealth Group Inc. | 1.40 | 1.58 | 1.24 | — | — | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.22 | 1.48 | 1.29 | — | — | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.48 | 2.65 | 2.59 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 12,682,000,000 ÷ 1,434,780,104 = 8.84
3 Closing price as at the filing date of Boston Scientific Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 47.18 ÷ 8.84 = 5.34
5 Click competitor name to see calculations.
- Share price
- The share price exhibited relative stability from 2018 to 2020, moving slightly from $39.86 to $38.75. From 2020 onwards, a noticeable upward trend occurred, with the price rising to $43.71 in 2021 and further to $47.18 in 2022. This suggests increased market valuation or investor confidence in the latter years.
- Sales per share
- Sales per share showed a general increasing trend over the analyzed period, starting at $7.09 in 2018 and reaching $8.84 in 2022. There was a slight dip in 2020 to $6.99 from $7.69 in 2019, likely indicating some revenue pressure or operational challenges during that year. However, recovery is evident from 2021 onwards, with sales per share climbing to their highest level in 2022.
- Price-to-Sales (P/S) ratio
- The P/S ratio fluctuated modestly between 2018 and 2022. It started at 5.62 in 2018, decreased to 5.19 in 2019, then showed a temporary increase to 5.54 in 2020. Afterward, it declined to 5.25 in 2021 and slightly increased again to 5.34 in 2022. These variations imply that the share price movements were somewhat aligned with sales per share changes, reflecting consistent market valuation levels relative to sales across the years.
Price to Book Value (P/BV)
Boston Scientific Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,434,780,104 | 1,426,724,712 | 1,417,165,707 | 1,396,195,349 | 1,385,961,926 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 17,573) | 16,622) | 15,326) | 13,877) | 8,726) | |
| Book value per share (BVPS)2 | 12.25 | 11.65 | 10.81 | 9.94 | 6.30 | |
| Share price1, 3 | 47.18 | 43.71 | 38.75 | 39.91 | 39.86 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 3.85 | 3.75 | 3.58 | 4.02 | 6.33 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.06 | 5.75 | 6.65 | — | — | |
| CVS Health Corp. | 1.61 | 1.83 | 1.33 | — | — | |
| Elevance Health Inc. | 3.19 | 3.07 | 2.19 | — | — | |
| Intuitive Surgical Inc. | 7.78 | 8.59 | 9.53 | — | — | |
| Medtronic PLC | 2.24 | 3.26 | 2.48 | — | — | |
| UnitedHealth Group Inc. | 5.81 | 6.27 | 4.83 | — | — | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.75 | 4.16 | 3.51 | — | — | |
| P/BV Ratio, Industry | ||||||
| Health Care | 4.90 | 5.07 | 4.90 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 17,573,000,000 ÷ 1,434,780,104 = 12.25
3 Closing price as at the filing date of Boston Scientific Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 47.18 ÷ 12.25 = 3.85
5 Click competitor name to see calculations.
- Share Price Trends
- The share price experienced slight fluctuations over the analyzed period. It began at $39.86 at the end of 2018, remaining relatively stable through 2019 at $39.91. A modest decline was observed in 2020 to $38.75, followed by a recovery and upward movement to $43.71 in 2021. The upward trend continued into 2022, reaching $47.18, representing the highest share price within the examined timeframe.
- Book Value Per Share (BVPS) Trends
- Book value per share demonstrated consistent growth each year. Starting at $6.30 in 2018, it increased substantially to $9.94 in 2019. The upward trend continued at a slower pace, rising to $10.81 in 2020, $11.65 in 2021, and $12.25 in 2022. This reflects a steady increase in the company’s net asset value attributed to each outstanding share.
- Price-to-Book Value (P/BV) Ratio Trends
- The price-to-book value ratio showed a decreasing trend from 6.33 in 2018 to 3.58 in 2020, indicating a relative decline in the market price compared to the underlying book value. However, a slight increase was noted afterward, climbing to 3.75 in 2021 and further to 3.85 in 2022. Despite the increase, the ratio remained significantly lower than the initial value at the start of the period, suggesting a change in market valuation dynamics relative to book value.
- Summary Insights
- Over the five-year period, the company’s book value per share steadily increased, signaling growth in shareholder equity. The share price, while somewhat stable initially, showed a notable rise in the last two years. The decrease in the P/BV ratio during the first part of the period, followed by a modest rise, points to an evolving market perception of the company’s value, moving from a higher premium over book value toward a more moderate one, though still above three times book value. This may imply increased investor confidence in the company’s fundamentals in recent years.