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).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Solvency Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Historical Valuation Ratios (Summary)
Cummins Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio data begins from March 29, 2020, showing an initial increase from 10.92 to a peak of 20.48 at the end of 2020. This peak is followed by a gradual decline throughout 2021, reaching levels around mid-teens. In 2022, the ratio fluctuates moderately but remains relatively stable between approximately 14.66 and 17.56. In 2023, there is a noticeable decline from 16.33 to 11.04 by the third quarter, then a sharp spike to 49.57 in the fourth quarter, before settling at 19.78 in the first quarter of 2024. This indicates periods of both growing investor optimism and volatility in earnings expectations.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio follows a similar trend to P/E, starting at 9.14 in March 2020 and increasing steadily to 16.31 by the end of 2020. Following this, a decline occurs during 2021, reaching a low of 11.41 in the first quarter of 2022. The ratio shows moderate variability throughout 2022 and 2023, with a decreasing trend evident in the latter half of 2023, dropping to 8.18. Thereafter, a substantial increase to levels above 20 is observed at year-end 2023 and continuing into early 2024. These movements suggest fluctuations in operating profit relative to market valuation, coupled with periods of investor caution and optimism.
- Price to Sales (P/S) Ratio
- The P/S ratio remains stable at 1.05 in early 2020, before increasing steadily to a peak of 1.83 at the first quarter of 2021. Subsequently, there is a gradual decline through 2021 transitioning into 2022, dropping from 1.79 to around 1.17 by the first quarter of 2022. During the remainder of 2022 and much of 2023, the ratio remains relatively stable between approximately 1.07 and 1.29, before a dip to 0.93 in the third quarter of 2023. It then recovers slightly to reach 1.13 by the first quarter of 2024. This pattern indicates modest fluctuations in market valuation relative to sales, with periods of both discounting and premium evaluation by the market.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio is available for the entire period from the first quarter of 2019. The ratio starts at 3.35 and fluctuates modestly around a range of 3.15 to 4.61 through 2019 to 2021, peaking in early 2021. In 2022, the ratio sees a downward movement to around 3.35 to 3.91, followed by moderate recovery to above 4.0 by the fourth quarter of 2022. During 2023, a decline occurs reaching a low of 2.9 in the third quarter, before rising sharply to over 4.0 by the beginning of 2024. This trend suggests variations in market valuation relative to book value, indicating changing investor sentiment and potential adjustments in the company’s net asset perception.
- Overall Observations
- Across all ratios, there is a consistent pattern of growth during 2020, likely reflecting improved market conditions or increased investor expectations post early 2020. Ratios peak during late 2020 or early 2021 and then demonstrate a general decline or stabilization through 2022 and mid-2023. The sharp increases in late 2023 and early 2024 across the P/E, P/OP, and P/BV ratios suggest renewed market optimism or revaluation during that period, accompanied by notable volatility. The P/S ratio remains comparatively more stable, indicating less fluctuation in valuation relative to revenue. The observed volatility in profitability-based ratios implies changing profitability dynamics and varying investor confidence over time.
Price to Earnings (P/E)
Cummins Inc., historical P/E calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net income attributable to Cummins Inc. (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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
EPS
= (Net income attributable to Cummins Inc.Q1 2024
+ Net income attributable to Cummins Inc.Q4 2023
+ Net income attributable to Cummins Inc.Q3 2023
+ Net income attributable to Cummins Inc.Q2 2023)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Cummins Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited notable fluctuations over the period under review. Starting at approximately $166 in early 2019, the price showed moderate volatility, dipping to around $161 in early 2020 before an upward trend emerged through the end of 2020, peaking above $245 by December 2020. The share price then continued to rise into early 2021, reaching roughly $256 in the first quarter of 2021, followed by some volatility throughout 2021 and 2022, with values oscillating between $200 and $240. A resurgence occurred starting in late 2023 and into early 2024, culminating in the highest observed price of approximately $280 in March 2024. Overall, the share price trend reflects both market fluctuations and a general appreciation over the multi-year span.
- Earnings Per Share (EPS)
- EPS data is available from the first quarter of 2020. Initially, earnings per share were relatively strong, starting at $15.04 in the first quarter of 2020, before a decline to a low of about $10.73 in the fourth quarter of 2020. From early 2021 onward, EPS generally increased with some variability, rising to roughly $15.65 by the fourth quarter of 2021. Despite some fluctuations in 2022, EPS maintained a stable range mostly between $13.5 and $15.2. Noteworthy is the marked improvement in 2023, with EPS reaching nearly $19.73 in the fourth quarter, signifying a significant profitability increase. The first quarter of 2024 shows a notable dip to $5.18, followed by a rebound to $14.17 by the end of the same quarter, which may indicate an anomaly or reporting timing effect.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio was recorded starting in early 2020. Initially, the ratio was modest, around 10.9 to 11.3 in the first two quarters of 2020, before rising sharply to over 20 in the last quarter of 2020, suggesting a growing stock price relative to earnings or decreasing earnings at that time. Throughout 2021 and 2022, the ratio stabilized between approximately 14.5 and 17.6, reflecting a period of balanced valuation relative to earnings. A gradual decline in the P/E ratio is observed during 2023, dropping to about 11 by the third quarter, indicating improved earnings relative to share price. An outlier appears in the first quarter of 2024 with the P/E ratio spiking to nearly 50, likely due to the sharp fall in reported EPS in the same period, followed by normalization to around 19.8 by the end of the quarter.
- Summary of Trends and Insights
- The share price trend indicates overall growth with periodic volatility aligned with broader market and company-specific developments. Earnings per share reveal a dip during 2020, possibly impacted by external economic factors, followed by steady recovery and growth into 2023. The P/E ratio movement mirrors changes in earnings and share price, showing periods of both expansion and contraction in valuation multiples. The unusual EPS and P/E figures in early 2024 warrant closer examination to understand underlying causes. Overall, the financial data reflect a company with strengthening profitability and share price appreciation over the medium term, punctuated by short-term variability.
Price to Operating Profit (P/OP)
Cummins Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Operating income (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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
Operating profit per share
= (Operating incomeQ1 2024
+ Operating incomeQ4 2023
+ Operating incomeQ3 2023
+ Operating incomeQ2 2023)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Cummins Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited considerable fluctuations over the observed periods. Initially, values ranged from approximately $164 to $177 in 2019, with a notable dip to around $161 in early 2020. Subsequently, a substantial recovery and upward trend occurred during 2020, peaking near $255 by early 2021. After a moderate decline throughout 2021 and mid-2022, the share price showed renewed strength, reaching a high of approximately $280 by March 2024. This overall pattern indicates strong volatility with a long-term upward trajectory.
- Operating Profit Per Share (OPPS) Analysis
- Operating profit per share began being reported in March 2020, starting at $17.97 and experiencing a decline over the next two quarters to $13.47 by December 2020. This initial dip was followed by a recovery phase, where OPPS increased steadily to peak at $26.63 by December 2023. However, there was a sharp decrease in the latest measurement in March 2024, dropping to approximately $12.12, less than half of the previous quarter's peak. This volatility suggests varying operational performance possibly affected by external factors or internal adjustments.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio, which measures the price investors are willing to pay per unit of operating profit, displayed significant variation. From March 2020, values started at approximately 9.14, rising gradually to peak around 16.31 by December 2020. The ratio decreased to a range between 9.6 and 12.8 during 2021 and 2022, indicative of a normalization phase in valuation. A pronounced drop to 8.18 by December 2023 was observed, reflecting higher operating profits relative to price or undervaluation. However, in March 2024, the ratio surged to 23.12, implying a sharp increase in share price relative to operating profit or a sudden decline in profits, supporting the observed decrease in operating profit per share at that time.
- Overall Insights
- The data indicates that while the share price has generally trended upward with periods of volatility, the operating profit per share showed a rise and significant recent decline. The P/OP ratio movements corroborate these patterns, highlighting a disconnect between price and earnings in the latest quarter. This divergence suggests potential concerns regarding profitability sustainability or market expectations moving into 2024. The sharp drop in operating profit per share alongside a high P/OP ratio warrants further investigation into underlying operational challenges or market dynamics affecting the company.
Price to Sales (P/S)
Cummins Inc., historical P/S calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
Sales per share
= (Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023
+ Net salesQ2 2023)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Cummins Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited fluctuations throughout the analyzed periods. Initially, it decreased slightly from $166.29 to $161.08 between March 31, 2019, and March 29, 2020. Subsequently, there was a significant increase reaching a peak of $255.61 by April 4, 2021. Following this peak, the price showed volatility with decreases and recoveries, hitting a low around $202.13 on March 31, 2022, before trending upward again to reach $280.29 by March 31, 2024. Overall, the share price demonstrated growth with periods of both correction and rally.
- Sales per Share
- Available data for sales per share starting from March 29, 2020 shows a generally upward trajectory. The value rose from $156.86 to $248.68 by March 31, 2024, indicating consistent growth in sales relative to shares outstanding. This steady increase suggests strengthening operational performance or increased revenue generation capacity across the observed quarters.
- Price-to-Sales (P/S) Ratio
- The P/S ratio displayed variation over the periods with an initial rise from 1.05 on March 29, 2020, to a peak of 1.83 by April 4, 2021. After this peak, the ratio decreased steadily reaching a low of 0.93 by September 30, 2023, before slightly recovering to 1.13 at the end of the observation period. This trend indicates changing market valuation relative to sales, with the valuation premium shrinking in later periods despite rising sales per share.
- Overall Insights
- The data reflects a company experiencing growth in sales on a per-share basis alongside a generally appreciating share price, although the price exhibited considerable volatility. The P/S ratio fluctuations highlight shifts in market sentiment or valuation multiples, possibly influenced by external market conditions or company-specific factors. The decline in P/S ratio after early 2021, despite rising sales, may point to increased investor caution or adjustments in expected growth rates. The recovery of share price and P/S ratio towards the end of the period suggests renewed confidence or improved market outlook.
Price to Book Value (P/BV)
Cummins Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Total Cummins Inc. shareholders’ equity (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. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2024 Calculation
BVPS = Total Cummins Inc. shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Cummins Inc. Quarterly or Annual Report.
4 Q1 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price showed fluctuations over the analyzed quarters, starting at $166.29 in March 2019 and experiencing a general upward trend with intermittent volatility. Notably, it dropped to around $161.08 by March 2020, coinciding with the early pandemic period, then rebounded sharply to reach a peak of $256.85 by December 2023. By March 2024, there was a further increase to $280.29, representing a significant appreciation relative to the initial value. Despite some declines in mid-2021 and late 2022, the overall momentum remained positive towards the end of the period.
- Book Value Per Share (BVPS) Trend
- BVPS exhibited a generally steady upward progression from $49.65 in March 2019 to $66.29 in March 2024. The value showed incremental growth with minor fluctuations, including a temporary dip around September 2022 at $59.42 and a peak at $75.19 in September 2023. By the end of the period, BVPS declined somewhat to $66.29 in March 2024 after the peak, indicating some variability but an overall increase in the underlying book value over time.
- Price-to-Book Value (P/BV) Ratio Analysis
- The P/BV ratio experienced noticeable variation during the observed timeframe. Starting at 3.35 in March 2019, the ratio incrementally increased and peaked at 4.61 by April 2021, suggesting that the market price was valued significantly above the book value at that time. After this peak, the ratio declined to a low of 2.90 in September 2023, indicating the share price was closer to book value or that book value growth outpaced share price temporarily. Subsequently, the ratio rose again to 4.23 by March 2024, reflecting an increase in market valuation relative to book value. These fluctuations imply varying investor sentiment and valuation multiples across the period examined.
- Overall Insights
- Over the series of quarters, the share price showed a resilient and positive long-term trend despite short-term fluctuations, recovering from a pandemic-related downturn to a significantly higher valuation. The BVPS increased steadily, evidencing growth in the company's net assets per share. The P/BV ratio's volatility reflects changing market perceptions and valuation dynamics, with notable highs during mid to late 2021 and late 2023 to early 2024. The convergence of rising share price and increasing book value, alongside fluctuating P/BV ratios, indicates a company seen as fundamentally stronger over time but subject to shifting market sentiments affecting valuation multiples.