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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Carrier Global Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2020
- Price to Book Value (P/BV) since 2020
- Analysis of Revenues
- Aggregate Accruals
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Current Valuation Ratios
Carrier Global Corp., current price multiples
| Carrier Global Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | Capital Goods | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 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)
Carrier Global Corp., historical price multiples
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| 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: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the key valuation ratios over the three-year period reveals notable trends and fluctuations.
- Price to Earnings (P/E) Ratio
- The P/E ratio increased significantly from 16.34 in 2020 to 23.68 in 2021, indicating a higher market valuation relative to earnings during that year. However, this ratio then dropped sharply to 10.48 in 2022, suggesting a marked reduction in market optimism or a rise in earnings relative to price.
- Price to Operating Profit (P/OP) Ratio
- This ratio followed a similar pattern to the P/E ratio, rising from 10.5 in 2020 to 14.9 in 2021, before declining substantially to 8.2 in 2022. The initial increase points to a higher price being paid for operating profit, while the subsequent decrease may reflect improved operating profit margins or a decrease in share price.
- Price to Sales (P/S) Ratio
- The P/S ratio showed relative stability over the period, with a slight increase from 1.85 in 2020 to 1.91 in 2021, followed by a minor decrease to 1.81 in 2022. This modest fluctuation suggests consistent market valuation relative to sales throughout the three years.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio increased from 5.18 in 2020 to 5.82 in 2021, reflecting growing market valuation relative to the company's book value. However, it declined to 4.77 in 2022, indicating a partial correction or a change in balance sheet valuation by the market.
Overall, the valuation multiples exhibited significant volatility particularly between 2021 and 2022, with ratios generally peaking in 2021 before declining in 2022. This trend may reflect changing market perceptions of profitability and growth prospects, as well as shifts in earnings and operating profit performance during the period. The relative stability of the price to sales ratio suggests that sales figures were less influential in driving market valuation changes compared to earnings and profit-based measures.
Price to Earnings (P/E)
Carrier Global Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||
| Selected Financial Data (US$) | ||||
| Net income attributable to common shareowners (in millions) | ||||
| Earnings per share (EPS)2 | ||||
| Share price1, 3 | ||||
| Valuation Ratio | ||||
| P/E ratio4 | ||||
| Benchmarks | ||||
| P/E Ratio, Competitors5 | ||||
| Boeing Co. | ||||
| Caterpillar Inc. | ||||
| Eaton Corp. plc | ||||
| GE Aerospace | ||||
| Honeywell International Inc. | ||||
| Lockheed Martin Corp. | ||||
| RTX Corp. | ||||
| P/E Ratio, Sector | ||||
| Capital Goods | ||||
| P/E Ratio, Industry | ||||
| Industrials | ||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income attributable to common shareowners ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Carrier Global Corp. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated an overall positive trend from December 31, 2020, to December 31, 2021, increasing from 37.25 USD to 46.06 USD. However, it experienced a slight decline in the following year, ending at 44.39 USD as of December 31, 2022. Despite this decrease, the share price in 2022 remained above the 2020 level.
- Earnings Per Share (EPS)
- The EPS shows a fluctuating pattern over the three-year span. It decreased from 2.28 USD in 2020 to 1.95 USD in 2021, indicating a decline in profitability or earnings performance in that period. However, a significant recovery and growth occurred by the end of 2022, with EPS increasing sharply to 4.24 USD, more than doubling the 2021 figure and surpassing the 2020 level.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio exhibited notable volatility. It rose from 16.34 in 2020 to 23.68 in 2021, suggesting that the market price was relatively higher compared to earnings or that investors expected improved future earnings despite the decrease in EPS during the same period. In 2022, the P/E ratio dropped sharply to 10.48, reflecting the doubling of EPS which outpaced the share price increase, making the shares comparatively more attractively valued by this metric in the most recent year analyzed.
Price to Operating Profit (P/OP)
Carrier Global Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||
| Selected Financial Data (US$) | ||||
| Operating profit (in millions) | ||||
| Operating profit per share2 | ||||
| Share price1, 3 | ||||
| Valuation Ratio | ||||
| P/OP ratio4 | ||||
| Benchmarks | ||||
| P/OP Ratio, Competitors5 | ||||
| Boeing Co. | ||||
| Caterpillar Inc. | ||||
| Eaton Corp. plc | ||||
| GE Aerospace | ||||
| Honeywell International Inc. | ||||
| Lockheed Martin Corp. | ||||
| RTX Corp. | ||||
| P/OP Ratio, Sector | ||||
| Capital Goods | ||||
| P/OP Ratio, Industry | ||||
| Industrials | ||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Carrier Global Corp. Annual Report.
4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated an overall upward movement from 37.25 US dollars at the end of 2020 to 46.06 US dollars by the end of 2021, marking a substantial increase. However, this trend reversed slightly in 2022, with the share price declining to 44.39 US dollars.
- Operating Profit Per Share
- Operating profit per share exhibited a decline from 3.55 US dollars in 2020 to 3.09 US dollars in 2021, indicating a reduction in profitability on a per-share basis during this period. Subsequently, there was a sharp increase to 5.41 US dollars in 2022, suggesting a significant improvement in operational earnings.
- Price-to-Operating-Profit Ratio (P/OP)
- The P/OP ratio increased from 10.5 in 2020 to 14.9 in 2021, reflecting higher market valuation relative to operating profit per share, despite the decline in profit itself. In 2022, the ratio dropped markedly to 8.2, which corresponds with the rise in operating profit per share and a modest decrease in share price, indicating the market valued the company's operating earnings more attractively in that year.
Price to Sales (P/S)
Carrier Global Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||
| Selected Financial Data (US$) | ||||
| Net sales (in millions) | ||||
| Sales per share2 | ||||
| Share price1, 3 | ||||
| Valuation Ratio | ||||
| P/S ratio4 | ||||
| Benchmarks | ||||
| P/S Ratio, Competitors5 | ||||
| Boeing Co. | ||||
| Caterpillar Inc. | ||||
| Eaton Corp. plc | ||||
| GE Aerospace | ||||
| Honeywell International Inc. | ||||
| Lockheed Martin Corp. | ||||
| RTX Corp. | ||||
| P/S Ratio, Sector | ||||
| Capital Goods | ||||
| P/S Ratio, Industry | ||||
| Industrials | ||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Carrier Global Corp. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an upward trend from 37.25 US$ at the end of 2020 to 46.06 US$ by the end of 2021, reflecting a notable increase. However, there was a slight decline in 2022, with the share price decreasing to 44.39 US$. Despite this decrease, the 2022 price remained above the 2020 figure, suggesting overall growth over the three-year period.
- Sales Per Share
- Sales per share showed consistent growth throughout the period. From 20.08 US$ at the end of 2020, sales per share increased to 24.09 US$ in 2021 and marginally to 24.48 US$ in 2022. This steady increase indicates improved revenue generation on a per-share basis, although the rate of growth slowed in the last reported year.
- Price-to-Sales Ratio (P/S)
- The price-to-sales ratio remained relatively stable across the three years. Starting at 1.85 in 2020, it increased slightly to 1.91 in 2021 before decreasing to 1.81 in 2022. The minor fluctuations suggest that the market valuation relative to sales per share held steady, with a small peak in 2021 followed by a slight correction in 2022.
Price to Book Value (P/BV)
Carrier Global Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||
| Selected Financial Data (US$) | ||||
| Equity attributable to common shareowners (in millions) | ||||
| Book value per share (BVPS)2 | ||||
| Share price1, 3 | ||||
| Valuation Ratio | ||||
| P/BV ratio4 | ||||
| Benchmarks | ||||
| P/BV Ratio, Competitors5 | ||||
| Boeing Co. | ||||
| Caterpillar Inc. | ||||
| Eaton Corp. plc | ||||
| GE Aerospace | ||||
| Honeywell International Inc. | ||||
| Lockheed Martin Corp. | ||||
| RTX Corp. | ||||
| P/BV Ratio, Sector | ||||
| Capital Goods | ||||
| P/BV Ratio, Industry | ||||
| Industrials | ||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Equity attributable to common shareowners ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Carrier Global Corp. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an upward trend from US$37.25 at the end of 2020 to US$46.06 at the end of 2021, representing a notable increase. However, in 2022, the share price slightly declined to US$44.39, indicating a minor correction but still remaining above the 2020 level.
- Book Value Per Share (BVPS) Trend
- The book value per share showed consistent growth over the three-year period. It increased from US$7.19 in 2020 to US$7.91 in 2021 and further to US$9.30 in 2022. This upward trend signifies strengthening of the company’s net asset value per share annually.
- Price-to-Book Value (P/BV) Ratio Changes
- The P/BV ratio rose from 5.18 in 2020 to 5.82 in 2021, suggesting that the market valuation of the shares increased faster than the growth in book value. In 2022, the ratio decreased to 4.77, reflecting either a relative increase in book value compared to share price or a moderation in market valuation multiples.
- Overall Insights
- The data reflects a generally positive performance with growing intrinsic value per share. Despite a peak in share price and valuation multiples in 2021, the slight decline in 2022 indicates a recalibration of market sentiment or valuation metrics. The consistent increase in book value per share underscores improved underlying company fundamentals through the period analyzed.