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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Halliburton Co. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Current Valuation Ratios
Halliburton Co., current price multiples
| Halliburton Co. | Schlumberger Ltd. | ||
|---|---|---|---|
| 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 to operating profit (P/OP) | |||
| Price to sales (P/S) | |||
| Price to book value (P/BV) | |||
Based on: 10-K (reporting date: 2018-12-31).
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)
Halliburton Co., historical price multiples
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| 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: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
The evaluation of the financial ratios over the examined periods reveals several notable trends and fluctuations.
- Price to Earnings (P/E) Ratio
- The P/E ratio was reported at 10.47 as of December 31, 2014, and increased to 16.54 by December 31, 2018. There is no available data for the intermediate years, but the overall trend suggests a growth in investor expectations regarding earnings or possibly an increase in stock price relative to earnings by the end of the period.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio showed considerable variability. In 2014, the ratio was 7.19, it then peaked dramatically at 30 in 2017 before declining to 11.11 in 2018. This indicates significant fluctuations in operating profit relative to price, possibly reflecting operational challenges or changes in market valuation during these years.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrated a steady upward trend from 1.11 in 2014 to a peak of 2.99 in 2016, then decreased notably to 1.14 in 2018. This pattern suggests a temporary increase in market price in relation to sales, followed by a reversion to earlier valuation levels. The substantial rise followed by a correction may indicate market optimism that later tempered.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio rose significantly from 2.25 in 2014 to a high of 5.06 in 2016, slightly decreased to 4.91 in 2017, and then fell to 2.88 by the end of 2018. This trend reflects shifting market perceptions of the company's net asset value over time, with a mid-period peak suggesting increased investor confidence or asset revaluation, followed by a normalization phase.
Overall, the data exhibit considerable volatility in valuation multiples, particularly from 2016 through 2017, with most ratios reaching their peak around those years before declining towards 2018. This indicates fluctuating market sentiment and operational performance impact on the valuation metrics over the analyzed period.
Price to Earnings (P/E)
Halliburton Co., historical P/E calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to company (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Schlumberger Ltd. | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
EPS = Net income (loss) attributable to company ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Halliburton Co. Annual Report.
4 2018 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited significant volatility over the observed period. It initially declined from $43.12 at the end of 2014 to $31.35 in 2015. A notable recovery occurred in 2016 when the share price increased sharply to $54.88, followed by a decrease to $46.70 in 2017. The price then declined again to $31.40 by the end of 2018, reflecting overall instability and pronounced fluctuations.
- Earnings Per Share (EPS) Trend
- The earnings per share demonstrated a downward trajectory from a positive $4.12 in 2014 to negative values in the subsequent years, reaching a low of -$6.65 in 2016. There was a slight improvement in 2017 where the EPS was -$0.53, and a further rebound in 2018 to a positive $1.90. This pattern indicates financial challenges, with significant losses during 2015 and 2016 followed by gradual recovery towards profitability by 2018.
- Price-to-Earnings (P/E) Ratio Trend
- The available P/E ratio data is sparse, recorded as 10.47 in 2014 and increasing to 16.54 by the end of 2018. The absence of data for intermediate years is likely due to negative earnings in those periods, which preclude meaningful P/E calculation. The increase from 2014 to 2018 suggests a relative increase in market valuation compared to earnings in 2018, attributable to the recovery in EPS recorded in that year.
Price to Operating Profit (P/OP)
Halliburton Co., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Schlumberger Ltd. | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Halliburton Co. Annual Report.
4 2018 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated notable fluctuations over the analyzed period. It initially declined from $43.12 at the end of 2014 to $31.35 in 2015. A significant increase followed, peaking at $54.88 at the end of 2016, before decreasing again to $46.70 in 2017 and falling further to $31.40 by the end of 2018. This pattern suggests a volatile market valuation with a peak in 2016 and subsequent decline.
- Operating Profit per Share
- The operating profit per share exhibited considerable volatility and negative values during the period. In 2014, it stood at $6.00, but sharply dropped to a loss of $0.19 per share in 2015, further worsening to a negative $7.82 in 2016. The metric recovered somewhat in the subsequent years, achieving a positive value of $1.56 in 2017 and improving further to $2.83 in 2018. This trend reflects operational challenges during 2015-2016 with a gradual recovery afterward.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio is partially available for 2014, 2017, and 2018. It was 7.19 in 2014, suggesting a relatively moderate valuation against operating profit at the time. The ratio surged dramatically to 30 in 2017, potentially due to the low operating profit per share earlier that year, indicating overvaluation or market anticipation of future recovery. In 2018, it decreased to 11.11, signaling an adjustment to a more balanced valuation consistent with improved operational performance.
Price to Sales (P/S)
Halliburton Co., historical P/S calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Schlumberger Ltd. | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Halliburton Co. Annual Report.
4 2018 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced notable fluctuations over the five-year period. It declined from $43.12 at the end of 2014 to $31.35 by the end of 2015, indicating a significant decrease. In 2016, the share price surged sharply to $54.88, representing the highest value in the observed period. However, this peak was followed by a decline to $46.70 in 2017 and a further reduction to $31.40 in 2018, approaching the levels observed at the start of the period.
- Sales per Share
- Sales per share demonstrated a downward trend initially, falling from $38.69 in 2014 to $18.33 in 2016. After reaching this low point, sales per share showed signs of recovery, increasing to $23.57 in 2017 and further to $27.50 in 2018, though still below the 2014 level.
- Price-to-Sales (P/S) Ratio
- The Price-to-Sales ratio was relatively stable at 1.11 and 1.14 in 2014 and 2015, respectively. It then rose sharply to 2.99 in 2016, coinciding with the peak in the share price despite the low sales per share, suggesting that the market price was high relative to sales. The ratio declined to 1.98 in 2017 and further to 1.14 in 2018, returning to values similar to those at the beginning of the period.
- Overall Insights
- There is an evident disconnect between sales per share and share price in 2016, where the share price increased despite declining sales, resulting in a higher P/S ratio. The subsequent years showed a correction in the P/S ratio alongside stabilization and partial recovery in sales per share. The trends suggest volatility and market reassessment during the period, with the share price and P/S ratio moving in tandem following the 2016 peak but remaining below earlier levels by 2018.
Price to Book Value (P/BV)
Halliburton Co., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Company shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Schlumberger Ltd. | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 Data adjusted for splits and stock dividends.
2 2018 Calculation
BVPS = Company shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Halliburton Co. Annual Report.
4 2018 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited volatility over the analyzed period. It decreased notably from $43.12 in 2014 to $31.35 in 2015, followed by a significant increase to $54.88 in 2016. Subsequently, the share price declined to $46.70 in 2017 and further decreased to $31.40 in 2018. This indicates fluctuating market valuation with a peak in 2016 and a downward trend afterwards.
- Book Value Per Share (BVPS)
- The book value per share showed a consistent decline over the period from $19.15 in 2014 to a low of $9.51 in 2017. There was a slight recovery in 2018, rising to $10.91. Overall, BVPS experienced a significant decrease, indicating a reduction in the company's net asset value per share during these years.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio demonstrated considerable fluctuation. It dropped from 2.25 in 2014 to 1.74 in 2015, suggesting the market price became more aligned with book value. However, there was a sharp increase to 5.06 in 2016 and a small decrease to 4.91 in 2017, indicating the share price was valued significantly above book value during these years. The ratio then declined to 2.88 in 2018, reflecting a partial normalization in market valuation relative to net assets.
- Summary Insights
- The data reveals a period of instability in market perceptions and asset values. The share price and P/BV ratio peaked in 2016, while the BVPS consistently declined until 2017, signaling pressure on underlying asset values. The subsequent decreases in share price and P/BV in 2018 may reflect market adjustments to the diminished book value per share or external factors influencing valuation. The divergence between market price and book value during peak years suggests investor expectations or speculative factors impacted share pricing beyond fundamental asset valuations.