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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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Selected Financial Data since 2006
- Net Profit Margin since 2006
- Price to Earnings (P/E) since 2006
- Aggregate Accruals
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Current Valuation Ratios
Time Warner Cable Inc., current price multiples
| Time Warner Cable Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | ||
|---|---|---|---|---|---|---|---|---|
| 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: 2015-12-31).
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)
Time Warner Cable Inc., historical price multiples
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| 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: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
The financial ratios analyzed over the five-year period demonstrate notable trends reflecting changes in market valuation and company profitability.
- Price to Earnings (P/E) Ratio
- The P/E ratio shows a fluctuating upward trend, beginning at 14.65 in 2011, dipping to 11.92 in 2012, followed by a significant increase to 20.59 in 2013. It remains relatively stable in 2014 at 20.71, then rises sharply to 28.42 in 2015. This pattern indicates growing investor expectations of future earnings growth or possibly a rising stock price relative to earnings over the period.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio initially decreases slightly from 5.99 in 2011 to 5.78 in 2012, then exhibits a consistent upward trajectory reaching 8.78 in 2013, 9.08 in 2014, and accelerating to 12.36 in 2015. This suggests the market's valuation per unit of operating profit has increased substantially, possibly reflecting improvements in perceived operational efficiency or profitability.
- Price to Sales (P/S) Ratio
- The P/S ratio remains relatively stable between 2011 and 2012, at around 1.24 and 1.20 respectively, before rising sharply to 1.82 in 2013 and maintaining a steady increase to 1.84 in 2014 and 2.21 in 2015. This upward trend indicates an increased willingness by investors to pay more for each dollar of sales, which may suggest expectations of higher profit margins or revenue growth potential.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio shows an overall rising trend with some volatility, starting at 3.24 in 2011, increasing to 3.53 in 2012 and experiencing a sharp rise to 5.79 in 2013. However, it slightly declines to 5.25 in 2014 before ascending again to 5.83 in 2015. This pattern may reflect changes in the company's market valuation relative to its net asset base, possibly influenced by asset revaluations or varying investor sentiment regarding asset quality.
Overall, the upward trends in the valuation multiples (P/E, P/OP, P/S, and P/BV) suggest a progressively more optimistic market view of the company's growth prospects and profitability over the period analyzed, especially notable from 2013 onwards. The notable increases in price-based ratios relative to earnings, operating profit, sales, and book value indicate an expanding valuation premium that may reflect strategic developments or improving financial performance.
Price to Earnings (P/E)
Time Warner Cable Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income attributable to TWC shareholders (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
EPS = Net income attributable to TWC shareholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Time Warner Cable Inc. Annual Report.
4 2015 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a consistent upward trend over the five-year period. Starting at $77.66 at the end of 2011, it increased steadily each year, reaching $184.99 by the end of 2015. This represents more than a doubling in value, highlighting strong market confidence or positive growth expectations during the timeframe.
- Earnings per Share (EPS)
- EPS showed growth from 2011 to 2012, rising from $5.30 to $7.29. However, after 2012, EPS slightly declined and stabilized, fluctuating around the $7.00 mark in 2013 and 2014, before decreasing to $6.51 in 2015. This indicates that the company's profitability, as measured per share, experienced an initial improvement followed by a modest decline in the latter years.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio displayed significant variation during the period. It started at 14.65 in 2011 and dropped to 11.92 in 2012, suggesting a more favorable valuation relative to earnings. Subsequently, the ratio rose sharply to 20.59 in 2013 and remained relatively stable in 2014 at 20.71. By 2015, it surged to 28.42, indicating that the share price was increasing at a much higher rate than earnings, possibly reflecting heightened investor expectations or market optimism despite the decreasing EPS in 2015.
Price to Operating Profit (P/OP)
Time Warner Cable Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Time Warner Cable Inc. Annual Report.
4 2015 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a consistent upward trend over the five-year period, increasing from $77.66 at the end of 2011 to $184.99 at the end of 2015. Notable acceleration was observed between 2012 and 2013, with another significant increase continuing through 2015.
- Operating Profit per Share
- Operating profit per share increased initially from $12.96 in 2011 to a peak of $16.51 in 2013. This was followed by a marginal decline in 2014 to $16.49 and a more pronounced drop in 2015 to $14.96, indicating a downward shift in operational profitability per share in the latter part of the period.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed a declining trend from 5.99 in 2011 to 5.78 in 2012, suggesting that the share price was relatively low compared to operating profit in that year. However, from 2013 onwards, the ratio increased sharply, reaching 12.36 by 2015. This indicates that the share price outpaced the growth or stability of operating profit, reflecting higher market valuation multiples despite the decrease in operating profit per share in the final year.
Price to Sales (P/S)
Time Warner Cable Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Time Warner Cable Inc. Annual Report.
4 2015 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reflects a positive trajectory in various key metrics over the five-year period ending in 2015.
- Share Price
- The share price exhibited a consistent upward trend, increasing from $77.66 in 2011 to $184.99 in 2015. This represents a significant growth of approximately 138%, indicating strong market confidence and potentially favorable company performance or market conditions.
- Sales per Share
- Sales per share also showed steady growth, rising from $62.64 in 2011 to $83.66 in 2015. Although the increase is more modest compared to the share price, it nonetheless signals a progressive improvement in revenue generated per share over the observed period.
- Price-to-Sales Ratio (P/S)
- The P/S ratio moved upward from 1.24 in 2011 to 2.21 in 2015. This increase suggests that the market began valuing the company’s sales more highly, potentially due to improved profitability, growth prospects, or investor sentiment. The ratio’s rise accelerated after 2012, reflecting a shift in the market’s perception of the company's revenue-generating capacity.
Overall, the trends indicate robust share price appreciation supported by increasing sales per share, with the market placing a growing premium on the company's sales figures. This pattern may point to enhanced operational efficiency or positive changes in business fundamentals over the analyzed timeframe.
Price to Book Value (P/BV)
Time Warner Cable Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total TWC shareholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 Data adjusted for splits and stock dividends.
2 2015 Calculation
BVPS = Total TWC shareholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Time Warner Cable Inc. Annual Report.
4 2015 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analyzed financial data reveals several notable trends in key metrics over the period from 2011 to 2015.
- Share Price
- The share price exhibited a consistent upward trajectory throughout the years. Starting at $77.66 in 2011, it rose steadily each year, reaching $184.99 by the end of 2015. This represents more than a doubling in value over five years, with significant acceleration particularly noticeable between 2012 and 2013.
- Book Value Per Share (BVPS)
- Bvps showed a moderate but steady increase over the same period. Beginning at $23.97 in 2011, it gradually increased year-on-year to $31.75 by 2015. This indicates a stable growth in the company's net asset value on a per-share basis.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio demonstrated considerable variability. It started at 3.24 in 2011 and increased to 3.53 in 2012. A sharp upward jump occurred in 2013 when the ratio surged to 5.79, indicating the market price was substantially higher relative to the book value. The ratio slightly decreased to 5.25 in 2014 but then rose again to 5.83 in 2015. This trend suggests that investors were willing to pay a premium over the book value, reflecting positive market sentiment or expectations about future growth or profitability.
Overall, the data suggests strong market valuation gains, supported by steady growth in book value per share. The increasing P/BV ratio indicates growing investor confidence and possibly enhanced earnings prospects beyond the company's book equity base during the period analyzed.