Price to Operating Profit (P/OP)
since 2016
Calculation
e.l.f. Beauty, Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| May 23, 2024 | 69.05 | = | 184.77 | ÷ | 2.68 | 2.68 | = | 149,678 | ÷ | 55,939,080 | |
| May 25, 2023 | 82.33 | = | 104.15 | ÷ | 1.27 | 1.27 | = | 68,143 | ÷ | 53,867,072 | |
| May 26, 2022 | 43.25 | = | 24.63 | ÷ | 0.57 | 0.57 | = | 29,770 | ÷ | 52,272,764 | |
| May 27, 2021 | 156.71 | = | 28.52 | ÷ | 0.18 | 0.18 | = | 9,400 | ÷ | 51,649,915 | |
| May 28, 2020 | 27.67 | = | 16.57 | ÷ | 0.60 | 0.60 | = | 29,950 | ÷ | 50,009,051 | |
| Feb 28, 2019 | 14.84 | = | 7.95 | ÷ | 0.54 | 0.54 | = | 26,162 | ÷ | 48,820,126 | |
| Mar 1, 2018 | 25.89 | = | 18.43 | ÷ | 0.71 | 0.71 | = | 33,279 | ÷ | 46,757,524 | |
| Mar 15, 2017 | 51.91 | = | 26.24 | ÷ | 0.51 | 0.51 | = | 23,079 | ÷ | 45,655,937 |
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of e.l.f. Beauty, Inc. Annual Report.
The Price to Operating Profit (P/OP) ratio exhibits significant volatility over the analyzed period, reflecting shifting market sentiment and operational performance. The valuation trend can be categorized into three distinct phases: a period of contraction, a sharp spike in the multiple, and a subsequent phase of aggressive growth and relative stabilization.
- Valuation Compression (2017–2019)
- A downward trend in the P/OP ratio is observed from 2017 to 2019, decreasing from 51.91 to 14.84. This compression was primarily driven by a substantial decline in the share price, which fell from 26.24 to 7.95, while operating profit per share remained relatively stable, fluctuating between 0.51 and 0.71.
- Operational Contraction and Multiple Peak (2020–2021)
- The P/OP ratio experienced a dramatic increase, reaching a peak of 156.71 in 2021. This surge was caused by a combination of a recovering share price and a significant drop in operating profit per share, which reached a period low of 0.18. The resulting multiple indicates a period where market valuation far outpaced immediate operational earnings.
- Accelerated Growth and Valuation Normalization (2022–2024)
- From 2022 to 2024, a phase of rapid scaling is evident. The share price rose sharply from 24.63 to 184.77, while operating profit per share grew substantially from 0.57 to 2.68. Although the P/OP ratio remained high, fluctuating between 43.25 and 82.33, the significant increase in operational profitability served to moderate the valuation multiple relative to the 2021 peak.
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Comparison to Competitors
e.l.f. Beauty, Inc., P/OP, long-term trends, comparison to competitors
| e.l.f. Beauty, Inc. | Procter & Gamble Co. | |
|---|---|---|
| May 23, 2024 | 69.05 | 21.33 |
| May 25, 2023 | 82.33 | 20.19 |
| May 26, 2022 | 43.25 | 19.41 |
| May 27, 2021 | 156.71 | 19.08 |
| May 28, 2020 | 27.67 | 21.01 |
| Feb 28, 2019 | 14.84 | 15.00 |
| Mar 1, 2018 | 25.89 | 16.71 |
| Mar 15, 2017 | 51.91 | 17.07 |
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).