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).
Current Valuation Ratios
Mosaic Co., current price multiples
| Mosaic Co. | Linde plc | Sherwin-Williams Co. | Chemicals | Materials | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $52.22 | |||||||
| No. shares of common stock outstanding | 345,267,189 | |||||||
| Growth rate (g) | 2.12% | |||||||
| Earnings per share (EPS) | $4.72 | |||||||
| Next year expected EPS | $4.82 | |||||||
| Operating profit per share | $7.15 | |||||||
| Sales per share | $35.79 | |||||||
| Book value per share (BVPS) | $30.71 | |||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | 11.06 | 34.14 | 33.08 | 54.98 | 37.88 | |||
| Price to next year expected earnings | 10.83 | 32.53 | 22.36 | 52.35 | 35.35 | |||
| Price-earnings-growth (PEG) | 5.22 | 6.89 | 0.69 | 10.95 | 5.29 | |||
| Price to operating profit (P/OP) | 7.30 | 25.96 | 23.27 | 41.48 | 23.80 | |||
| Price to sales (P/S) | 1.46 | 6.79 | 3.84 | 6.17 | 5.15 | |||
| Price to book value (P/BV) | 1.70 | 5.88 | 21.90 | 6.73 | 6.26 | |||
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)
Mosaic Co., historical price multiples
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 exhibits a generally downward trend over the periods presented, starting with a missing value in 2017, peaking at 23.58 in 2018, then declining to 16.9 in 2020, and further falling to 10.21 by the end of 2021. This decrease suggests an improvement in earnings or a reduction in market price relative to earnings over time.
- Price to operating profit (P/OP) ratio
-
The P/OP ratio shows considerable volatility. It starts at 22.71 in 2017, sharply declines to 11.94 in 2018, then rises steeply to 27.27 in 2020, before falling again to 6.74 in 2021. The fluctuation indicates significant changes in operating profitability relative to the market price, with the notably low value in 2021 suggesting enhanced operating profits or a reduced market price during that year.
- Price to sales (P/S) ratio
-
The P/S ratio gradually decreases from 1.43 in 2017 to 0.79 in 2019, indicating a decreasing market valuation relative to sales. However, it rebounds to 1.3 in 2020 and slightly increases to 1.35 in 2021, which could imply a recovery in investor confidence or sales valuation.
- Price to book value (P/BV) ratio
-
The P/BV ratio remains relatively stable but shows an upward trend toward the end of the period. Starting at 1.1 in 2017, it slightly declines to 0.76 in 2019, then increases to 1.18 in 2020 and further to 1.57 in 2021. This trend suggests that the market began to value the company's book value more highly in recent years, possibly reflecting improved asset quality or growth expectations.
Price to Earnings (P/E)
Mosaic Co., 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 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Net earnings (loss) attributable to Mosaic (in thousands) | 1,630,600) | 666,100) | (1,067,400) | 470,000) | (107,200) | |
| Earnings per share (EPS)2 | 4.43 | 1.76 | -2.82 | 1.22 | -0.28 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 10.21 | 16.90 | — | 23.58 | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Linde plc | 38.92 | 52.57 | — | — | — | |
| Sherwin-Williams Co. | 37.32 | 31.64 | — | — | — | |
| P/E Ratio, Sector | ||||||
| Chemicals | 38.39 | 43.19 | — | — | — | |
| P/E Ratio, Industry | ||||||
| Materials | 28.21 | 47.50 | — | — | — | |
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 earnings (loss) attributable to Mosaic ÷ No. shares of common stock outstanding
= 1,630,600,000 ÷ 368,309,275 = 4.43
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 45.20 ÷ 4.43 = 10.21
5 Click competitor name to see calculations.
The financial data indicates variable performance over the analyzed periods, reflected through key metrics such as share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.
- Share Price Trends
- The share price of the company demonstrated fluctuations throughout the five-year span. Starting at $27.46 in 2017, it slightly increased to $28.75 in 2018 before experiencing a decrease to $18.47 in 2019. Subsequently, the price rebounded significantly to $29.70 in 2020 and further surged to reach $45.20 by the end of 2021. This pattern suggests recovery and growth in market valuation following the dip in 2019.
- Earnings per Share (EPS) Analysis
- EPS exhibited high volatility with both negative and positive values across the years. The company reported a negative EPS of -$0.28 in 2017, improved sharply to a positive $1.22 in 2018, but then declined steeply to -$2.82 in 2019, indicating a possible loss or operational challenges during that year. Recovery was evident in 2020 with EPS increasing to $1.76 and further improving to $4.43 in 2021, matching the upward trend in share price and implying enhanced profitability in recent periods.
- Price-to-Earnings (P/E) Ratio Insights
- The P/E ratio is only available for certain years, showing a ratio of 23.58 in 2018, which aligns with the positive EPS and a relatively stable share price. No P/E is reported for years with negative EPS, reflecting standard practice to omit this ratio when earnings are negative. The ratio decreased to 16.9 in 2020 and further dipped to 10.21 in 2021 despite rising share prices, suggesting increased earnings outpacing price growth or a revaluation of the company's stock as more attractive.
Overall, the data reveals a company that has encountered volatility in earnings, with a significant downturn in 2019 followed by a strong recovery through 2020 and 2021. Share price trends mirror this dynamic, with recent years showing considerable growth and improving investor confidence as EPS and valuation metrics enhance.
Price to Operating Profit (P/OP)
Mosaic Co., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Operating earnings (loss) (in thousands) | 2,468,500) | 412,900) | (1,094,900) | 928,300) | 465,700) | |
| Operating profit per share2 | 6.70 | 1.09 | -2.89 | 2.41 | 1.21 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 6.74 | 27.27 | — | 11.94 | 22.71 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Linde plc | 29.87 | 39.58 | — | — | — | |
| Sherwin-Williams Co. | 27.19 | 22.45 | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Chemicals | 28.96 | 31.65 | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Materials | 17.73 | 28.27 | — | — | — | |
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 = Operating earnings (loss) ÷ No. shares of common stock outstanding
= 2,468,500,000 ÷ 368,309,275 = 6.70
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 45.20 ÷ 6.70 = 6.74
5 Click competitor name to see calculations.
The financial data reveals distinct trends in share price, operating profit per share, and the price-to-operating-profit ratio over the five-year period ending in 2021.
- Share Price
- The share price exhibited moderate growth from 27.46 US$ in 2017 to 28.75 US$ in 2018, followed by a significant decline to 18.47 US$ in 2019. This decrease was subsequently offset by a recovery and sharp increase, reaching 29.7 US$ in 2020 and peaking at 45.2 US$ in 2021. Overall, the share price demonstrated volatility with a strong upward trend in the final two years.
- Operating Profit per Share
- The operating profit per share showed an initial improvement from 1.21 US$ in 2017 to 2.41 US$ in 2018. However, it turned negative in 2019, dropping to -2.89 US$, indicating operational challenges or exceptional losses during that year. A recovery phase followed, with positive values of 1.09 US$ in 2020 and a substantial rise to 6.7 US$ in 2021, suggesting enhanced profitability and operational efficiency.
- Price-to-Operating-Profit Ratio (P/OP)
- The P/OP ratio decreased markedly from 22.71 in 2017 to 11.94 in 2018, reflecting the improved operating profit per share relative to share price. Data for 2019 is unavailable, likely due to the negative operating profit per share making the ratio undefined or not meaningful. The ratio surged to 27.27 in 2020, which could be attributed to the relatively low operating profit despite an increasing share price. In 2021, the ratio declined substantially to 6.74, indicating that the share price increase was well supported by strong operating profits, and the stock became comparatively less expensive on an operating profit basis.
In summary, the data illustrates a period of volatility culminating in a turnaround starting in 2020, characterized by recovering profitability and a rising share price accompanied by a more attractive valuation metric in terms of operating profits by 2021.
Price to Sales (P/S)
Mosaic Co., 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 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Net sales (in thousands) | 12,357,400) | 8,681,700) | 8,906,300) | 9,587,300) | 7,409,400) | |
| Sales per share2 | 33.55 | 22.90 | 23.51 | 24.87 | 19.23 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.35 | 1.30 | 0.79 | 1.16 | 1.43 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Linde plc | 4.84 | 4.83 | — | — | — | |
| Sherwin-Williams Co. | 3.49 | 3.50 | — | — | — | |
| P/S Ratio, Sector | ||||||
| Chemicals | 4.31 | 4.29 | — | — | — | |
| P/S Ratio, Industry | ||||||
| Materials | 3.83 | 4.08 | — | — | — | |
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
= 12,357,400,000 ÷ 368,309,275 = 33.55
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 45.20 ÷ 33.55 = 1.35
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited fluctuations over the five-year period. Beginning at $27.46 in 2017, it increased slightly to $28.75 in 2018 before dropping significantly to $18.47 in 2019. In 2020, the share price rebounded to $29.70 and continued to rise sharply to reach $45.20 by the end of 2021. This indicates a recovery and strong growth phase following the dip experienced in 2019.
- Sales per Share Trends
- Sales per share increased from $19.23 in 2017 to $24.87 in 2018, showing a healthy upward trend. However, it slightly declined in 2019 to $23.51 and continued a minor downward movement to $22.90 in 2020. A significant increase occurred in 2021, where sales per share rose markedly to $33.55. Overall, sales per share demonstrated resilience with growth accelerating in the latest year.
- Price-to-Sales (P/S) Ratio Trends
- The P/S ratio started at 1.43 in 2017 and declined steadily to a low of 0.79 in 2019. This suggests that the market was valuing the company's sales lower relative to its share price during this time. The ratio then increased to 1.30 in 2020 and stabilized slightly higher at 1.35 in 2021. This pattern indicates that investor confidence improved alongside the recovery in share price and sales per share, restoring valuation multiples closer to earlier levels.
- Summary of Financial Trends
- Over the five-year period, the company experienced a notable dip in share price and valuation multiples in 2019, accompanied by a slight weakening in sales per share. The subsequent years, especially 2021, showed robust recovery and growth in both share price and sales per share. The P/S ratio’s rebound suggests improved market perception and valuation alignment with the company’s sales performance.
Price to Book Value (P/BV)
Mosaic Co., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 368,309,275 | 379,093,342 | 378,764,442 | 385,470,499 | 385,226,223 | |
| Selected Financial Data (US$) | ||||||
| Total Mosaic stockholders’ equity (in thousands) | 10,604,100) | 9,581,400) | 9,185,500) | 10,397,300) | 9,617,500) | |
| Book value per share (BVPS)2 | 28.79 | 25.27 | 24.25 | 26.97 | 24.97 | |
| Share price1, 3 | 45.20 | 29.70 | 18.47 | 28.75 | 27.46 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.57 | 1.18 | 0.76 | 1.07 | 1.10 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Linde plc | 3.38 | 2.78 | — | — | — | |
| Sherwin-Williams Co. | 28.55 | 17.79 | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Chemicals | 4.70 | 3.84 | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Materials | 4.66 | 3.99 | — | — | — | |
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 = Total Mosaic stockholders’ equity ÷ No. shares of common stock outstanding
= 10,604,100,000 ÷ 368,309,275 = 28.79
3 Closing price as at the filing date of Mosaic Co. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 45.20 ÷ 28.79 = 1.57
5 Click competitor name to see calculations.
The analysis of the financial data reveals several trends and insights regarding the equity valuation and market perception over the five-year period.
- Share Price:
- The share price exhibited fluctuation over the period. It started at $27.46 at the end of 2017, slightly increasing to $28.75 in 2018, followed by a significant decline to $18.47 in 2019. Subsequently, it rebounded sharply to $29.7 in 2020 and further surged to $45.2 by the end of 2021, representing a strong upward trend in the last two years.
- Book Value per Share (BVPS):
- BVPS displayed some variability but overall a gradual increase. Starting at $24.97 in 2017, it rose to $26.97 in 2018, then slightly decreased to $24.25 in 2019. From 2020 onward, it consistently increased to $25.27 and then to $28.79 in 2021, indicating a moderate enhancement in the company's net asset value on a per-share basis.
- Price to Book Value (P/BV) Ratio:
- The P/BV ratio mirrored the share price movements relative to book value. It was slightly above 1.0 in 2017 and 2018 (1.1 and 1.07 respectively), dropped significantly below 1.0 to 0.76 in 2019, suggesting the market was undervaluing the shares relative to book value. Thereafter, it increased to 1.18 in 2020 and further to 1.57 in 2021, indicating increasing investor confidence and valuation premiums above book value during this period.
Overall, the data reflects a period of volatility with a marked recovery and renewed investor optimism from 2020 onwards, as evidenced by both increasing share price and rising P/BV ratios, accompanied by steady growth in book value per share.