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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IQVIA Holdings Inc. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2013
- Price to Earnings (P/E) since 2013
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Current Valuation Ratios
IQVIA Holdings Inc., current price multiples
| IQVIA Holdings Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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)
IQVIA Holdings Inc., historical price multiples
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Price to Earnings (P/E) Ratio
- The price to earnings ratio exhibited a notable decline over the examined period. Initially very high at 107.95 in 2018, it surged further to a peak of 166.58 in 2019. However, from 2020 onward there was a sharp decreasing trend, reaching 132.09 in 2020, followed by a marked drop to 45.78 in 2021, and further down to 38.65 in 2022. This suggests a significant improvement in earnings relative to share price or possibly a correction in market valuation after previous overvaluation.
- Price to Operating Profit (P/OP) Ratio
- The price to operating profit ratio followed a similar trajectory to the P/E ratio but with less pronounced fluctuations. Starting at 37.73 in 2018, it rose moderately to 40.95 in 2019 and peaked at 50.41 in 2020. Thereafter, the ratio declined progressively, dropping to 31.75 in 2021 and further to 23.44 in 2022. This declining trend indicates an improvement in operating profit relative to the share price, implying better operational efficiency or increased profitability over the latter years.
- Price to Sales (P/S) Ratio
- The price to sales ratio experienced moderate variation during the period. Beginning at 2.69 in 2018, it increased gradually to 2.87 in 2019 and further to 3.24 in 2020, indicating rising market valuation relative to sales. In 2021, the ratio slightly decreased to 3.19 and then declined more noticeably to 2.93 in 2022. This pattern suggests a mild correction in valuation relative to revenue after a peak in 2020, stabilizing closer to earlier levels by 2022.
- Price to Book Value (P/BV) Ratio
- The price to book value ratio exhibited a consistent upward trend from 2018 through 2021. Starting at 4.16 in 2018, it rose steadily to 5.3 in 2019, 6.14 in 2020, and reached its highest point at 7.32 in 2021. The ratio stabilized slightly in 2022, maintaining a high level of 7.31. This persistent increase implies a growing market premium over the company's book value, reflecting investor confidence in the company’s assets and growth prospects during this period.
Price to Earnings (P/E)
IQVIA Holdings Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to IQVIA Holdings Inc. (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
EPS = Net income attributable to IQVIA Holdings Inc. ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of IQVIA Holdings Inc. Annual Report.
4 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a generally upward trend from 2018 to 2021, rising from $141.49 to a peak of $232.18. However, in 2022, there was a slight decline to $227.03, indicating a modest correction following several years of appreciation.
- Earnings Per Share (EPS)
- EPS showed fluctuations in the initial years with a decrease from $1.31 in 2018 to $0.99 in 2019, followed by a recovery to $1.46 in 2020. Starting in 2021, EPS experienced a significant increase, reaching $5.07, and continued to rise to $5.87 in 2022. This marks a substantial improvement in profitability per share in the latter years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio was notably high throughout the period, peaking at 166.58 in 2019 despite the dip in EPS that year, and generally trending downward thereafter. By 2022, the P/E ratio had declined to 38.65, reflecting the combination of increasing earnings and a relative stabilization of share price, suggesting a more reasonable market valuation relative to earnings.
Price to Operating Profit (P/OP)
IQVIA Holdings Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income from operations (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of IQVIA Holdings Inc. 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 trend from 2018 through 2021, starting at $141.49 and reaching a peak of $232.18 in 2021. In 2022, a slight decline occurred, bringing the price down to $227.03, which still represents a significant increase compared to the initial 2018 value.
- Operating Profit per Share
- Operating profit per share showed moderate growth from 2018 to 2019, increasing from $3.75 to $4.04, followed by a slight decrease in 2020 to $3.82. A notable surge occurred in 2021, where operating profit per share nearly doubled to $7.31, with continued growth in 2022, reaching $9.69. This indicates a substantial improvement in operational profitability per share over the observed period, especially from 2020 onwards.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio started relatively high at 37.73 in 2018, rising further to 40.95 in 2019 and peaking at 50.41 in 2020. This suggests that the share price was valued substantially above operating profit per share during this period. From 2021 onward, the ratio declined sharply—dropping to 31.75 in 2021 and further to 23.44 in 2022. This decline corresponds with the sharp increase in operating profit per share, indicating that the market valuation became more aligned with improved earnings performance.
- Summary
- Overall, the data reveal that the company experienced a steady increase in share price up to 2021, with a minor correction in 2022. The operating profit per share fluctuated initially but demonstrated strong growth from 2020 to 2022. Meanwhile, the P/OP ratio's rise and subsequent steep fall suggest early market optimism that was tempered as profitability improved significantly, resulting in a more favorable valuation multiple by the end of the period. The trends highlight an enhancement in operational efficiency and profitability, with the market adjusting to reflect this improved financial performance.
Price to Sales (P/S)
IQVIA Holdings Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of IQVIA Holdings Inc. Annual Report.
4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The analyzed financial data reveals several notable trends over the five-year period ending December 31, 2022.
- Share Price
- The share price experienced an overall upward trend from $141.49 in 2018 to a peak of $232.18 in 2021, representing substantial growth over this timeframe. In 2022, the share price saw a slight decline to $227.03, indicating a minor retreat but remaining significantly above the 2018 level.
- Sales Per Share
- Sales per share showed consistent growth each year, increasing from $52.69 in 2018 to $77.59 in 2022. Notably, the increase accelerated particularly in 2021 and 2022, with sales per share jumping from $59.38 in 2020 to $72.84 in 2021, and further to $77.59 in 2022. This trend suggests strengthening revenue generation on a per-share basis.
- Price to Sales (P/S) Ratio
- The P/S ratio rose steadily from 2.69 in 2018 to a high of 3.24 in 2020, indicating increasing market valuation relative to sales. After peaking, the ratio slightly declined to 3.19 in 2021 and further to 2.93 in 2022. This decline suggests a revaluation of the company’s sales by the market, possibly reflecting changes in investor expectations or market conditions despite growing sales per share.
In summary, the data reflects a company with improving sales performance per share and a generally increasing share price, although market valuation multiples have slightly contracted in the latter years. The slight decrease in share price and P/S ratio in 2022 may indicate a phase of consolidation or cautious investor sentiment despite ongoing sales growth.
Price to Book Value (P/BV)
IQVIA Holdings Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Equity attributable to IQVIA Holdings Inc.’s stockholders (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2022 Calculation
BVPS = Equity attributable to IQVIA Holdings Inc.’s stockholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of IQVIA Holdings Inc. Annual Report.
4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
Over the analyzed period from the end of 2018 through the end of 2022, the share price of the company exhibited a consistent upward trend followed by a slight decline in the final year. Starting at $141.49, the share price increased annually, reaching a peak of $232.18 by the end of 2021. However, in 2022, the share price decreased slightly to $227.03, suggesting a minor correction or market adjustment after several years of growth.
In contrast, the book value per share (BVPS) demonstrated a relatively stable but slightly declining pattern. Beginning at $33.98 at the end of 2018, BVPS decreased marginally in the following years, reaching $31.04 by the end of 2022. This suggests that the company’s net asset value per share remained steady with a mild downward trend, indicating limited growth in book equity relative to the number of shares outstanding or possible asset depreciation.
The price-to-book value ratio (P/BV) notably increased throughout the period, moving from a ratio of 4.16 in 2018 to a high of 7.32 by the end of 2021 and remaining almost unchanged at 7.31 in 2022. This rise reflects an increasing market valuation relative to the underlying book value, implying heightened investor confidence or expectations of future earnings growth despite the stable book value figures.
- Share Price Trends
- Consistent increase from 2018 to 2021, slight decrease in 2022.
- Book Value per Share Trends
- Relatively stable with a slight downward trend over the period.
- Price-to-Book Ratio Trends
- Steady increase through 2021, stabilizing at a high level in 2022.
- Insight
- The divergence between rising share prices and stable to slightly declining book values has resulted in higher market valuation multiples, indicating possibly optimistic market sentiment or improved earnings prospects not directly reflected in book equity.