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).
Historical Valuation Ratios (Summary)
EMC Corp., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 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).
The analysis of the quarterly financial ratios from March 2011 through June 2016 reveals several notable trends and fluctuations across the price-based valuation metrics.
- Price to Earnings (P/E) Ratio
- Data for this ratio begins in the first quarter of 2012. Initially, the P/E ratio exhibited a declining trend from 22.96 to 17.93 by the first quarter of 2013, indicating a contraction in market valuation relative to earnings. Subsequently, the ratio fluctuated moderately around the 18 to 23 range until the end of 2014. From 2015 onward, a steady increase is observed, with the P/E ratio rising from 20.51 to 26.51 by mid-2016. This uptick suggests rising market optimism or earnings multiples despite earnings performance.
- Price to Operating Profit (P/OP) Ratio
- Also starting in early 2012, the P/OP ratio follows a broadly similar pattern to the P/E ratio. It declines from 16.41 to a low of 12.36 by the first quarter of 2013, reflecting a decreasing price relative to operating profit. Following this, the ratio oscillates between approximately 12 and 15 through the end of 2014. However, from 2015 through mid-2016, the ratio climbs sharply from around 14 to over 18, closely aligning with the increasing valuation multiples seen in the P/E ratio. This may indicate that investors placed higher valuations on operating profits during this period.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrates a more consistent downward trend from 2.82 in early 2012 to about 2.02 by the third quarter of 2015, representing a gradual reduction in market price relative to sales over this period. Thereafter, a modest recovery is apparent, with the ratio rising back to approximately 2.26 by the middle of 2016. This implies that sales-based valuations slightly rebounded after a period of compression.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio, which has data available from the first quarter of 2011, shows a decreasing trend from 3.17 in early 2011 to around 2.19 by the fourth quarter of 2012. Following this decline, the ratio fluctuates within a relatively narrow band of roughly 2.2 to 2.6 through to mid-2016, with minor ups and downs but no significant long-term trend. This stability suggests that the market's valuation relative to book value has been fairly steady after the initial decline.
Overall, the data indicates a period of decreasing valuation multiples relative to earnings, operating profit, sales, and book value during 2011 to early 2013. Thereafter, the P/E and P/OP ratios reflect increasing valuation measures from 2014 onward, while the P/S ratio shows a more subdued recovery and P/BV remains stable. These mixed trends may reflect changing investor sentiment, earnings performance, and underlying business fundamentals.
Price to Earnings (P/E)
EMC Corp., historical P/E calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | 2,053,084,362 | 2,039,957,250 | 2,064,946,032 | 2,057,567,927 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Net income attributable to EMC Corporation (in millions) | 581) | 268) | 771) | 480) | 487) | 252) | 1,146) | 587) | 589) | 392) | 1,022) | 586) | 701) | 580) | 870) | 626) | 650) | 587) | 832) | 606) | 546) | 477) | |||||||
| Earnings per share (EPS)2 | 1.07 | 1.03 | 1.02 | 1.22 | 1.28 | 1.33 | 1.37 | 1.27 | 1.28 | 1.32 | 1.43 | 1.33 | 1.33 | 1.30 | 1.30 | 1.28 | 1.27 | 1.22 | 1.20 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | 27.52 | 25.00 | 22.99 | 27.00 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/E ratio4 | 26.51 | 25.58 | 25.37 | 21.18 | 20.91 | 20.51 | 21.20 | 22.82 | 22.77 | 19.42 | 18.01 | 17.95 | 19.72 | 18.02 | 17.93 | 19.53 | 20.47 | 23.28 | 22.96 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 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).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
EPS
= (Net income attributable to EMC CorporationQ2 2016
+ Net income attributable to EMC CorporationQ1 2016
+ Net income attributable to EMC CorporationQ4 2015
+ Net income attributable to EMC CorporationQ3 2015)
÷ No. shares of common stock outstanding
= (581,000,000 + 268,000,000 + 771,000,000 + 480,000,000)
÷ 1,956,842,060 = 1.07
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/E ratio = Share price ÷ EPS
= 28.45 ÷ 1.07 = 26.51
5 Click competitor name to see calculations.
The share price of the company has shown notable fluctuations over the analyzed quarters. Starting at $27 in March 2011, the price generally trended downward until December 2012, reaching a low near $23.28. Subsequently, there was a moderate recovery with some volatility, peaking around $29.06 in June 2014 before declining again and stabilizing in the mid-to-high $20 range by mid-2016.
Earnings per share (EPS) data is available from March 2012 onwards. The EPS began at 1.20 and exhibited a slow but steady increase through early 2014, peaking at approximately 1.43 in the first quarter of 2014. After this peak, EPS slightly declined over the next several quarters, settling around the 1.02 to 1.07 range by mid-2016, indicating some erosion in earnings performance relative to the earlier period.
The price-to-earnings (P/E) ratio mirrors these dynamics. From March 2012, the P/E ratio started near 23, reflecting moderate market optimism relative to earnings. The ratio lowered to values around 17.93 to 19.72 in 2012 and 2013, suggesting a valuation that may have become more attractive relative to earnings during that time. However, from 2014 onwards, the P/E ratio increased steadily beyond 22, reaching above 26 by mid-2016. This suggests that despite the decline in earnings, the market has maintained or increased its valuation multiples, possibly in expectation of future growth or due to other external factors.
In summary, the company’s share price and EPS experienced positive trends until early 2014, followed by a period of stabilization and slight decline in EPS. The P/E ratio trend indicates an expanding valuation multiple in recent years, highlighting a divergence between share price valuation and earnings trends. This pattern suggests cautious market optimism despite a mild downturn in the fundamental earnings metric.
Price to Operating Profit (P/OP)
EMC Corp., historical P/OP calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | 2,053,084,362 | 2,039,957,250 | 2,064,946,032 | 2,057,567,927 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Operating income (in millions) | 882) | 410) | 1,092) | 690) | 680) | 379) | 1,571) | 947) | 874) | 645) | 1,460) | 907) | 1,022) | 761) | 1,269) | 899) | 947) | 849) | 1,139) | 885) | 744) | 674) | |||||||
| Operating profit per share2 | 1.57 | 1.47 | 1.46 | 1.71 | 1.86 | 1.94 | 2.03 | 1.93 | 1.92 | 1.97 | 2.05 | 1.92 | 1.90 | 1.84 | 1.88 | 1.82 | 1.82 | 1.72 | 1.68 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | 27.52 | 25.00 | 22.99 | 27.00 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/OP ratio4 | 18.11 | 17.87 | 17.77 | 15.08 | 14.45 | 14.00 | 14.25 | 15.05 | 15.17 | 13.00 | 12.53 | 12.41 | 13.87 | 12.68 | 12.36 | 13.73 | 14.33 | 16.55 | 16.41 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 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).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
Operating profit per share
= (Operating incomeQ2 2016
+ Operating incomeQ1 2016
+ Operating incomeQ4 2015
+ Operating incomeQ3 2015)
÷ No. shares of common stock outstanding
= (882,000,000 + 410,000,000 + 1,092,000,000 + 690,000,000)
÷ 1,956,842,060 = 1.57
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 28.45 ÷ 1.57 = 18.11
5 Click competitor name to see calculations.
The quarterly financial data demonstrates several notable trends across the observed periods, particularly in share price, operating profit per share, and the price-to-operating profit ratio (P/OP).
- Share Price
- The share price exhibited fluctuations over the various quarters. Starting at $27 in March 2011, it generally trended downward through 2012, reaching a low around $23.28 at the end of 2012. Throughout 2013 and 2014, the price experienced moderate recovery and volatility, peaking near $29.06 in June 2014, followed by a slight decline and stabilization around the mid to high $20 range through 2015. In 2016, share price showed signs of gradual improvement, ending at $28.45 by June.
- Operating Profit Per Share (OPPS)
- Operating profit per share data begins from March 2012 and reveals a generally positive trend in profitability. Initially at $1.68, OPPS increased steadily to peak at $2.05 by December 2013. Subsequently, it exhibited mild fluctuations but maintained levels near $1.9 through 2014 and 2015. A decline is noted toward the end of 2015, where OPPS dropped to $1.46 but started to recover slightly by mid-2016, reaching $1.57.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed a downward trend from 16.41 in March 2012 to a low point around 12.36 by the end of 2012, signifying that share prices were relatively lower compared to operating profits during this period. Through 2013, the ratio remained fairly stable, fluctuating between approximately 12.41 and 13.87. However, starting in 2014, the ratio increased to around 15, indicating investors may have assigned higher valuation multiples per unit of operating profit despite modest profit fluctuations. By the end of the period in mid-2016, the ratio was at its highest level observed, approximately 18.11, suggesting either rising share valuations relative to operating profit or a perceived improvement in company prospects.
In summary, the data indicates that while operating profitability per share exhibited growth and some volatility, share prices faced more pronounced fluctuations. The increasing trend in the price-to-operating profit ratio toward the later periods could imply a growing investor confidence or a market re-rating of the company's earnings potential despite the less consistent operational profit trajectory in the later years.
Price to Sales (P/S)
EMC Corp., historical P/S calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | 2,053,084,362 | 2,039,957,250 | 2,064,946,032 | 2,057,567,927 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Revenues (in millions) | 6,017) | 5,475) | 7,015) | 6,079) | 5,997) | 5,613) | 7,049) | 6,032) | 5,880) | 5,479) | 6,682) | 5,539) | 5,614) | 5,387) | 6,030) | 5,278) | 5,311) | 5,094) | 5,574) | 4,980) | 4,845) | 4,608) | |||||||
| Sales per share2 | 12.56 | 12.58 | 12.69 | 12.76 | 12.83 | 12.65 | 12.29 | 11.83 | 11.62 | 11.39 | 11.46 | 10.97 | 10.72 | 10.48 | 10.32 | 10.09 | 9.99 | 9.76 | 9.75 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | 27.52 | 25.00 | 22.99 | 27.00 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/S ratio4 | 2.26 | 2.09 | 2.04 | 2.02 | 2.09 | 2.15 | 2.35 | 2.45 | 2.50 | 2.25 | 2.24 | 2.18 | 2.45 | 2.23 | 2.26 | 2.48 | 2.61 | 2.92 | 2.82 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 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).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
Sales per share
= (RevenuesQ2 2016
+ RevenuesQ1 2016
+ RevenuesQ4 2015
+ RevenuesQ3 2015)
÷ No. shares of common stock outstanding
= (6,017,000,000 + 5,475,000,000 + 7,015,000,000 + 6,079,000,000)
÷ 1,956,842,060 = 12.56
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/S ratio = Share price ÷ Sales per share
= 28.45 ÷ 12.56 = 2.26
5 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in share price, sales per share, and the price-to-sales (P/S) ratio over the observed periods.
- Share Price
- The share price experienced some volatility throughout the periods. Starting at $27 in March 2011, it decreased to a low of approximately $22.99 in June 2011. Following this, it showed partial recovery and fluctuated between $23 and $29 over subsequent quarters. The share price peaked at $29.06 in June 2014 and maintained a generally stable range slightly below this peak afterward. By mid-2016, the price showed a modest increase to $28.45 compared to earlier periods.
- Sales Per Share
- Sales per share data begins in March 2012 with a value of $9.75. From this point on, there is a consistent upward trend in sales per share from $9.75 in early 2012 to $12.56 by June 2016. This steady increase indicates gradual growth in sales revenue on a per-share basis, with few fluctuations. The growth trend slowed marginally towards the end, with values stabilizing around the $12.5 mark in 2015 and 2016.
- Price-to-Sales (P/S) Ratio
- The P/S ratio, beginning at 2.82 in March 2012, shows a general downward trend through 2012 and into 2013, reaching lows around 2.02 in September 2015. This decline suggests that the share price increased at a slower pace relative to sales growth or that sales grew faster than price at this time. However, from late 2015 onward, the P/S ratio begins to recover slightly, reaching 2.26 by June 2016. This could indicate a normalization or revaluation occurring after prior sales growth.
In summary, the share price showed moderate volatility but generally maintained relative stability near the later periods. Sales per share steadily improved across the timeline, reflecting sustained revenue growth per share. The P/S ratio decreased initially but began to recover in more recent quarters, which may indicate changing market perceptions or adjustments in valuation relative to sales growth.
Price to Book Value (P/BV)
EMC Corp., historical P/BV calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,956,842,060 | 1,953,196,703 | 1,947,047,380 | 1,938,837,339 | 1,924,726,357 | 1,942,061,163 | 1,988,086,911 | 2,034,908,501 | 2,028,658,204 | 2,047,299,647 | 2,025,633,308 | 2,057,846,730 | 2,080,853,985 | 2,100,840,084 | 2,104,430,304 | 2,106,655,190 | 2,098,719,769 | 2,099,710,476 | 2,053,084,362 | 2,039,957,250 | 2,064,946,032 | 2,057,567,927 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Total EMC Corporation’s shareholders’ equity (in millions) | 22,138) | 21,573) | 21,140) | 20,444) | 20,077) | 20,449) | 21,896) | 22,669) | 22,321) | 22,452) | 22,301) | 22,317) | 22,590) | 22,661) | 22,357) | 21,704) | 20,937) | 20,055) | 18,959) | 17,907) | 18,203) | 17,527) | |||||||
| Book value per share (BVPS)2 | 11.31 | 11.04 | 10.86 | 10.54 | 10.43 | 10.53 | 11.01 | 11.14 | 11.00 | 10.97 | 11.01 | 10.84 | 10.86 | 10.79 | 10.62 | 10.30 | 9.98 | 9.55 | 9.23 | 8.78 | 8.82 | 8.52 | |||||||
| Share price1, 3 | 28.45 | 26.27 | 25.93 | 25.83 | 26.85 | 27.19 | 28.94 | 29.04 | 29.06 | 25.62 | 25.68 | 23.87 | 26.32 | 23.38 | 23.28 | 24.98 | 26.08 | 28.51 | 27.52 | 25.00 | 22.99 | 27.00 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/BV ratio4 | 2.51 | 2.38 | 2.39 | 2.45 | 2.57 | 2.58 | 2.63 | 2.61 | 2.64 | 2.34 | 2.33 | 2.20 | 2.42 | 2.17 | 2.19 | 2.42 | 2.61 | 2.98 | 2.98 | 2.85 | 2.61 | 3.17 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 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).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
BVPS = Total EMC Corporation’s shareholders’ equity ÷ No. shares of common stock outstanding
= 22,138,000,000 ÷ 1,956,842,060 = 11.31
3 Closing price as at the filing date of EMC Corp. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/BV ratio = Share price ÷ BVPS
= 28.45 ÷ 11.31 = 2.51
5 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio over the reported periods.
- Share Price
- The share price exhibits significant fluctuations across the quarters from March 2011 to June 2016. Initially, it decreased from $27.00 in March 2011 to a low of $22.99 in June 2011, followed by a rebound to $27.52 at the end of 2011. Over the subsequent years, the share price showed a general downward drift during 2012, falling to $23.28 in December 2012. In 2013 and 2014, the price recovered somewhat, reaching highs around $29.06 in mid-2014. Afterwards, the price experienced a moderate decline through 2015, bottoming near $25.83 in September 2015, before a slight upward recovery to $28.45 by June 2016. This pattern indicates a cycle of volatility with periods of recovery surrounded by declines, without a clear long-term upward or downward trend.
- Book Value Per Share (BVPS)
- The BVPS shows a steady upward trend over the entire timeframe with modest periodic fluctuations. Beginning at $8.52 in March 2011, it increased consistently to reach $11.31 by June 2016. The growth, though gradual, suggests ongoing accumulation or retention of equity value. Minor oscillations late in the sequence, such as a slight decline in early 2015, are observed but do not disrupt the overall positive trajectory. This steady increase in BVPS reflects a strengthening book value base relative to the number of shares outstanding.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio exhibits a declining trend from an initial high of 3.17 in March 2011 to levels fluctuating near 2.4 to 2.6 through the later years. The ratio initially dropped sharply through 2011 and 2012, reaching a low near 2.17 at the end of 2012, indicating the market price was decreasing relative to book value. From 2013 onwards, the ratio fluctuated within a narrower range, with modest peaks and troughs but no return to the earlier elevated levels. This decrease in the P/BV ratio over time suggests the market valuation has become more conservative relative to the underlying book value, possibly reflecting changing market perceptions of the company’s growth prospects or risk profile.
Overall, the data indicate that while book value per share has steadily increased, signaling growth in equity base, the share price has been more volatile without a clear sustained increase. The declining P/BV ratio highlights a market valuation that has tempered compared to the growth in book value, reflecting a more cautious investor stance over the years analyzed.