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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Marathon Petroleum Corp. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to Book Value (P/BV) since 2011
- Analysis of Debt
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Current Valuation Ratios
Marathon Petroleum Corp., current price multiples
| Marathon Petroleum Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Occidental Petroleum Corp. | Oil, Gas & Consumable Fuels | Energy | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2023-12-31).
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)
Marathon Petroleum Corp., historical price multiples
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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: 2023-12-31), 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).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio exhibited fluctuations over the analyzed period. It began at 11.68 in 2019, dropped significantly to 4.32 in 2021, further decreased to 3.85 in 2022, and then rose to 6.24 in 2023. The absence of data for 2020 does not enable full year-over-year analysis, but the downward trend from 2019 to 2022 suggests a decreasing market valuation relative to earnings, followed by a partial recovery in 2023.
- Price to Operating Profit (P/OP) Ratio
- This ratio showed considerable variability. Starting at 5.52 in 2019, the data for 2020 is missing. There was a sharp increase to 9.79 in 2021, indicating higher market valuation relative to operating profit, which then declined steeply to 2.6 in 2022. In 2023, the ratio increased again to 4.16. This pattern suggests volatile investor sentiment or changes in operating profitability affecting valuation multiples.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio showed a modest upward trend overall. From 0.25 in 2019, it increased to 0.51 in 2020, declined to 0.35 in 2021, decreased slightly again to 0.32 in 2022, and then rose to 0.41 in 2023. This fluctuating pattern indicates periods of varying sales valuations, with a peak in 2020 and a secondary rise in 2023, possibly reflecting changing sales dynamics or market perceptions.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio demonstrated a consistent upward trend throughout the period. Starting at 0.91 in 2019, it increased steadily to 1.6 in 2020, 1.61 in 2021, 2.02 in 2022, and reached 2.48 in 2023. This persistent rise suggests increasing market valuation relative to the book value of the company's assets, indicating growing investor confidence or asset value appreciation over these years.
Price to Earnings (P/E)
Marathon Petroleum Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to MPC (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/E Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income (loss) attributable to MPC ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited a consistent upward trend over the observed periods, starting at $47.42 in 2019 and increasing steadily each year to reach $167.16 by the end of 2023. This represents a significant appreciation in market value over the five-year span.
Earnings per share (EPS) showed more volatility during the period. Initially, EPS was $4.06 in 2019, followed by a significant decline to a negative value of -$15.09 in 2020. The company then recovered strongly, with EPS rising to $17.23 in 2021, further increasing to $32.58 in 2022, before slightly declining to $26.79 in 2023. This pattern indicates a substantial recovery after a challenging year in 2020, with earnings stabilizing at a high level subsequently.
The price-to-earnings (P/E) ratio, which is calculated as the share price divided by EPS, reflected fluctuations aligned with the changes in EPS. The P/E ratio was 11.68 in 2019 but data for 2020 is not available, likely due to negative earnings making the ratio non-representative. The ratio dropped to 4.32 in 2021 and further decreased to 3.85 in 2022, suggesting that the share price was low relative to earnings during a period of strong EPS growth. In 2023, the P/E ratio increased to 6.24, indicating a moderation in share price growth relative to earnings or a normalization after a low valuation period.
Overall, the financial data reveals a company that experienced a significant earnings disruption in 2020, followed by a robust recovery and sustained earnings growth. The share price increase outpaced earnings growth in later years, as evidenced by the rising share price and the lead in P/E ratio growth in 2023. This suggests improving market sentiment and possibly expectations of continued positive performance.
Price to Operating Profit (P/OP)
Marathon Petroleum Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/OP Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a consistent upward trajectory over the observed period, increasing from $47.42 at the end of 2019 to $167.16 by the end of 2023. This reflects a strong positive market valuation trend, with particularly notable acceleration beginning in 2021.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed significant volatility. It started at $8.59 in 2019, declined sharply to a negative $18.80 in 2020, indicating a substantial operational loss during that year. Recovery began in 2021 with $7.61, followed by a marked increase to $48.19 in 2022, before slightly declining to $40.17 in 2023. This pattern suggests that the company experienced operational difficulties in 2020 but subsequently achieved robust profitability improvements.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio exhibited fluctuations aligned with changes in operating profitability. Data is missing for 2020, likely due to negative operating profit making the ratio non-computable. The ratio declined from 5.52 in 2019 to 2.60 in 2022, indicating an increase in operating profit relative to share price during the recovery phase. It then increased to 4.16 in 2023, reflecting a relative adjustment as operating profit decreased while share price continued to rise.
- Overall Insights
- The data indicates a resilience and recovery pattern, with operational challenges in 2020 followed by substantial rebound and investor confidence as evidenced by soaring share prices. The volatility in operating profit per share and corresponding ratio changes highlight operational and market perception adjustments over the period. The company’s market valuation appears to have grown more robust notwithstanding the fluctuations in operating profit, suggesting favorable investor expectations or other external factors contributing to share price increases.
Price to Sales (P/S)
Marathon Petroleum Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Sales and other operating revenues (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/S Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = Sales and other operating revenues ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The analysis of the annual financial data reveals several trends related to the share price, sales per share, and price-to-sales (P/S) ratio over the five-year period ending December 31, 2023.
- Share Price
- The share price shows a consistent upward trajectory from 2019 through 2023. Starting at $47.42 in 2019, it increased moderately to $54.62 in 2020, followed by a more significant rise to $74.46 in 2021. The growth accelerated further in 2022, reaching $125.52, and culminated in a peak of $167.16 by the end of 2023. This steady increase suggests growing investor confidence and potentially improved company performance or market conditions over the period.
- Sales per Share
- Sales per share experienced considerable fluctuations within the timeframe. In 2019, sales per share stood at $190.84 but dropped sharply to $107.14 in 2020, reflecting possible adverse conditions impacting revenue during that year. Following this decline, sales per share rebounded strongly to $212.28 in 2021, nearly doubling the prior year's value. The upward trend intensified further in 2022, reaching $398.28, and showed a minor incremental rise to $410.61 in 2023. These movements indicate a recovery and substantial growth in sales efficiency per share after the slump observed in 2020.
- Price-to-Sales (P/S) Ratio
- The P/S ratio started at 0.25 in 2019 and rose sharply to 0.51 in 2020, despite the decline in sales per share that year. This suggests that the share price did not proportionally decrease with sales, potentially due to market expectations or other factors influencing valuation. In subsequent years, the P/S ratio decreased to 0.35 in 2021 and further declined to 0.32 in 2022, indicating that sales growth was outpacing share price increases during this period. By 2023, the ratio increased again to 0.41, reflecting a partial realignment between share price and sales per share but still below the peak observed in 2020.
Price to Book Value (P/BV)
Marathon Petroleum Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total MPC stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| P/BV Ratio, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Total MPC stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Marathon Petroleum Corp. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a consistent upward trajectory from 2019 through 2023. Starting at $47.42 in 2019, it increased to $54.62 in 2020, followed by a significant rise to $74.46 in 2021. This upward momentum continued with a marked jump to $125.52 in 2022 and culminated at $167.16 in 2023. The data reflects strong market confidence and growing investor interest over the five-year period.
- Book Value Per Share (BVPS) Trend
- The book value per share experienced some fluctuations during the period. Initially, BVPS declined sharply from $51.88 in 2019 to $34.09 in 2020, indicating potential challenges or adjustments in the company's asset base or equity. However, from 2020 onwards, the BVPS displayed steady recovery and growth, rising to $46.36 in 2021, then increasing further to $62.20 in 2022, and finally reaching $67.53 in 2023. This improvement suggests enhanced asset values or retained earnings over recent years.
- Price-to-Book Value (P/BV) Ratio Trend
- The P/BV ratio rose significantly throughout the analyzed period. Starting below parity at 0.91 in 2019, the ratio increased sharply to 1.60 in 2020 and remained relatively stable at 1.61 in 2021. Thereafter, it climbed further to 2.02 in 2022 and reached 2.48 in 2023. This upward trend indicates that the market price of the shares increasingly exceeded the book value per share, potentially reflecting high market expectations for future growth or profitability that outpace the underlying net asset value.
- General Insights
- The consistent increase in share price paired with a recovering and growing book value per share suggests solid company performance and positive investor sentiment. The rise in the P/BV ratio beyond 2.0 in the last two years implies that the stock is valued at a premium relative to its book value, which may be driven by optimistic growth prospects or strategic developments. The initial dip in BVPS in 2020 appears as a temporary disruption, but subsequent rebounds confirm a strengthening equity base.