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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- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2010
- Current Ratio since 2010
- Total Asset Turnover since 2010
- Price to Operating Profit (P/OP) since 2010
- Price to Book Value (P/BV) since 2010
- Price to Sales (P/S) since 2010
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Current Valuation Ratios
Generac Holdings Inc., current price multiples
| Generac Holdings Inc. | 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: 2021-12-31).
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)
Generac Holdings Inc., historical price multiples
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| 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: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Price to Earnings (P/E) Ratio
- The P/E ratio demonstrated notable volatility throughout the analyzed period. It initially decreased from 18.07 in 2017 to 13.55 in 2018, signaling a lower market valuation relative to earnings. However, this trend reversed sharply, rising to 26.64 in 2019 and surging to a peak of 59.72 in 2020. By 2021, the ratio moderated to 32.73, reflecting a partial correction but remaining significantly elevated compared to early years. This fluctuation suggests changes in investor expectations about future profitability or variations in reported earnings.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio mirrored the pattern observed in the P/E ratio, indicating similar influences on operating profit valuations. From 11.47 in 2017, the ratio declined to 9.04 in 2018 before increasing substantially to 18.04 in 2019 and reaching a high of 43.7 in 2020. In 2021, it decreased to 24.98. The sharp rise and subsequent decline indicate significant shifts in market perceptions of operating profitability over time.
- Price to Sales (P/S) Ratio
- The P/S ratio exhibited a consistent upward trajectory from 2017 through 2020, increasing from 1.72 to 8.42, suggesting that the market increasingly valued sales revenue at a premium. This rapid appreciation peaked in 2020, followed by a notable decrease to 4.82 in 2021. This pattern may imply that the stock price increased faster than sales growth up to 2020, with the later decline reflecting adjustments in market expectations or sales performance.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio followed a similar trend to other valuation metrics, rising from 5.15 in 2017 to 6.5 in 2019 and then escalating sharply to 15.06 in 2020. The ratio decreased to 8.14 in 2021 but remained higher than initial years. This indicates a growing market premium over the company's book value, peaking in 2020 and then stabilizing at a lower, yet still elevated, level.
Price to Earnings (P/E)
Generac Holdings Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to Generac Holdings Inc. (in thousands) | ||||||
| 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: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income attributable to Generac Holdings Inc. ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Generac Holdings Inc. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a strong upward trend from 2017 through 2020, increasing from $46.20 in 2017 to a peak of $333.04 in 2020. In 2021, the share price declined to $282.47, though it remained significantly higher than the 2017 to 2019 levels. This indicates substantial market valuation growth over the period, with a notable correction in the final year.
- Earnings per Share (EPS)
- EPS showed consistent growth throughout the period. It rose steadily from $2.56 in 2017 to $8.63 in 2021, more than tripling over five years. This upward trend reflects improving profitability or operational performance, contributing positively to shareholder value.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio demonstrated considerable volatility. It was relatively moderate at 18.07 in 2017 and decreased to 13.55 in 2018, suggesting that shares were comparatively undervalued relative to earnings in 2018. The ratio then increased sharply to 26.64 in 2019 and escalated further to a peak of 59.72 in 2020, indicating heightened investor expectations or possibly an overvaluation during that period. In 2021, the P/E ratio declined to 32.73, suggesting a return to more moderate valuation levels relative to earnings.
Price to Operating Profit (P/OP)
Generac Holdings Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income from operations (in thousands) | ||||||
| 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: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Generac Holdings Inc. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited significant growth from 2017 to 2020, rising from $46.20 to $333.04. However, there was a noticeable decline in 2021, with the share price decreasing to $282.47. Overall, the trend indicates strong appreciation in the earlier years followed by a correction or consolidation in the final year observed.
- Operating Profit per Share
- Operating profit per share showed a consistent upward trajectory throughout the period. Starting at $4.03 in 2017, it steadily increased each year, reaching $11.31 by 2021. This suggests improving operational profitability on a per-share basis across the five years.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio demonstrated volatility during the period. It declined from 11.47 in 2017 to 9.04 in 2018, indicating increasing operating profit relative to share price. Subsequently, it rose sharply to 18.04 in 2019 and peaked at 43.7 in 2020, before decreasing to 24.98 in 2021. This pattern reflects the rapid increase in share price outpacing operating profit growth until 2020, followed by a partial correction in the ratio as operating profit growth continued.
Price to Sales (P/S)
Generac Holdings Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net sales (in thousands) | ||||||
| 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: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Generac Holdings Inc. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a strong upward trend over the analyzed period. Starting at $46.20 in 2017, it increased marginally to $51.97 in 2018, and then more than doubled to $107.31 in 2019. A pronounced surge occurred in 2020, with the price reaching $333.04. In 2021, the share price decreased somewhat to $282.47 but remained significantly higher than in previous years.
- Sales per Share
- Sales per share showed consistent growth throughout the period. Beginning at $26.83 in 2017, sales per share increased steadily each year to reach $58.59 in 2021. The growth was particularly noticeable between 2020 and 2021, where the value rose from $39.53 to $58.59, representing a substantial increase.
- Price-to-Sales (P/S) Ratio
- The P/S ratio demonstrated considerable volatility. It decreased slightly from 1.72 in 2017 to 1.60 in 2018, indicating a marginally lower market valuation relative to sales. However, it rose sharply to 3.05 in 2019, then experienced a significant jump to 8.42 in 2020, reflecting strong market optimism or overvaluation relative to sales during that year. In 2021, the P/S ratio declined to 4.82, suggesting a partial correction but still maintaining a relatively high valuation level compared to earlier years.
Price to Book Value (P/BV)
Generac Holdings Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity attributable to Generac Holdings Inc. (in thousands) | ||||||
| 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: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Stockholders’ equity attributable to Generac Holdings Inc. ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Generac Holdings Inc. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
Over the five-year period from 2017 to 2021, the share price of the company showed a significant upward trajectory with some volatility. The price increased from $46.20 at the end of 2017 to a peak of $333.04 at the end of 2020, before declining to $282.47 in 2021. This indicates a strong market valuation growth with a notable correction in the last recorded year.
The book value per share (BVPS) demonstrated a consistent year-over-year increase, rising steadily from $8.98 in 2017 to $34.71 in 2021. This suggests that the company's net asset base per share has strengthened markedly, implying an accumulation of equity or retained earnings over the period.
The price-to-book value ratio (P/BV) exhibited fluctuations reflective of the interplay between share price growth and BVPS growth. Starting at 5.15 in 2017, the ratio declined to 4.25 in 2018, implying a relative undervaluation or accelerated growth in book value relative to share price. Subsequently, the ratio increased notably to 6.50 in 2019 and surged to 15.06 in 2020, signaling elevated market expectations or possibly an overvaluation relative to book value. In 2021, the P/BV ratio decreased to 8.14, aligning with the lower share price while BVPS continued to grow.
Overall, the data indicates a company experiencing robust growth in intrinsic value as evidenced by rising book value per share, accompanied by substantial market enthusiasm reflected in the share price escalation and elevated price-to-book ratios. The correction in share price and P/BV in 2021 suggests a normalization or reassessment of market valuations after a period of rapid appreciation.