e.l.f. Beauty, Inc. (NYSE:ELF)

The financial multiples exhibit notable fluctuations over the five-year period, indicating varying market perceptions and valuation dynamics.

Price to Earnings (P/E) Ratio

The P/E ratio started at 46.33 in 2020, then surged dramatically to 236.37 in 2021. After this peak, it declined significantly to 59.14 in 2022 but increased again in subsequent years to 91.18 in 2023 and slightly decreased to 80.96 in 2024. This pattern suggests high volatility in earnings expectations or market sentiment during the period, with a particularly elevated valuation in 2021 followed by normalization and moderate fluctuations thereafter.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio follows a similar trend to the P/E ratio. It increased sharply from 27.67 in 2020 to 156.71 in 2021, then fell to 43.25 in 2022. Subsequent years show an increase again to 82.33 in 2023 and a reduction to 69.05 in 2024. This indicates significant changes in the operating profit valuation, mirroring the earnings valuation trend, possibly reflecting operational performance volatility or shifting investor outlook on profitability.

Price to Sales (P/S) Ratio

The P/S ratio displayed a generally upward trend. Starting at 2.93 in 2020, it rose to 4.63 in 2021, declined somewhat to 3.28 in 2022, and then surged substantially to 9.69 in 2023 and further to 10.09 in 2024. This suggests increasing valuation relative to sales over the long term, potentially due to improved revenue quality, market growth expectations, or changes in sales structure.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows steady and significant growth. From 3.42 in 2020, it increased to 5.46 in 2021, then slightly decreased to 4.12 in 2022 before rising sharply to 13.65 in 2023 and further to 16.09 in 2024. This progression points to a substantial increase in market valuation relative to the company’s book value, possibly indicating enhanced investor confidence in intangible assets, growth prospects, or changes in equity structure.

Overall, the data reveal considerable volatility in earnings and operating profit valuations, while sales and book value multiples show a stronger upward trajectory, especially in the latter years. These trends may reflect evolving market expectations, operational performance changes, and shifting perceptions of the company’s growth and asset base over time.

The presented financial data reveals notable trends in share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio over a five-year period ending March 31, 2024.

Share Price

The share price experienced significant appreciation from 2020 to 2024. Initially valued at $16.57 in March 2020, it rose to $28.52 by March 2021, representing a substantial increase of approximately 72%. Despite a slight decline to $24.63 in March 2022, the share price surged markedly thereafter, reaching $104.15 in March 2023 and further climbing to $184.77 by March 2024. This trend indicates strong market confidence and growth expectations in the latter years.

Earnings per Share (EPS)

Earnings per share showed a fluctuating yet overall upward trajectory within the same timeframe. EPS decreased sharply from $0.36 in March 2020 to $0.12 in March 2021, a decline that might suggest challenges in profitability or increased costs during that period. Thereafter, EPS improved to $0.42 in March 2022, followed by a more pronounced increase to $1.14 in March 2023, and doubling again to $2.28 in March 2024. The substantial improvement in EPS in recent years implies enhanced operational performance and profitability.

P/E Ratio

The P/E ratio exhibited high volatility, reflecting fluctuations in both market valuation and earnings. Starting at 46.33 in 2020, the ratio spiked dramatically to 236.37 in 2021, indicating that the market price greatly outpaced earnings, possibly due to investor optimism amidst lower earnings that year. In 2022, the P/E ratio decreased to 59.14, aligning more closely with the recovery in EPS. However, it rose again to 91.18 in 2023 and moderated slightly to 80.96 in 2024. Elevated P/E ratios in recent years suggest sustained high investor expectations for future growth despite rising earnings.

In summary, the financial data signals strong investor confidence and a significant increase in market valuation, supported by improving earnings performance. The volatility in the P/E ratio reflects varying market perceptions relative to earnings over the period, with particularly high valuations during periods of low or recovering profits. Overall, the company demonstrates robust growth momentum as reflected by both share price appreciation and EPS improvements.

Share Price

The share price exhibited substantial growth over the five-year period. Starting at $16.57 in March 2020, there was a notable increase by March 2021 to $28.52, followed by a slight decline to $24.63 in March 2022. Subsequently, the share price surged significantly to $104.15 in March 2023 and further climbed to $184.77 by March 2024, indicating a strong positive market valuation trend in the most recent years.

Operating Profit Per Share

The operating profit per share showed variability initially but demonstrated a clear upward trend in later years. It began at $0.60 in March 2020, declined to $0.18 in March 2021, and recovered to $0.57 in March 2022. From this point, there was consistent growth, reaching $1.27 in March 2023 and increasing substantially to $2.68 by March 2024, suggesting improved operational profitability on a per-share basis.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio experienced significant fluctuations across the period. It started relatively moderate at 27.67 in March 2020, then escalated sharply to 156.71 in March 2021, reflecting a period where share price outpaced earnings growth. The ratio then declined to 43.25 in March 2022, indicating some correction or increase in operating profit relative to price. However, the ratio rose again to 82.33 in March 2023 before slightly decreasing to 69.05 in March 2024, suggesting that while share price growth remained strong, operating profit increases helped moderate valuation extremes somewhat.

The financial data reveals significant positive trends in the company's market valuation and sales performance over the five-year period ending March 31, 2024.

Share Price

The share price demonstrated a strong upward trajectory, increasing from $16.57 in 2020 to $184.77 in 2024. This nearly eleven-fold increase is indicative of heightened investor confidence and possibly improved market perceptions of the company's future earnings potential.

Sales per Share

Sales per share also showed consistent growth, rising from $5.66 in 2020 to $18.30 in 2024. This growth reflects the company's successful expansion in revenue generation on a per-share basis, signaling effective business operations and possibly growing market demand for its products or services.

Price-to-Sales (P/S) Ratio

The P/S ratio fluctuated but remained on an upward trend overall. Starting at 2.93 in 2020, it peaked during the 2023 and 2024 periods at 9.69 and 10.09, respectively. This elevated ratio suggests increasing market valuation relative to sales, which could indicate strong investor expectations for future growth or profitability beyond current sales figures. However, the spike in P/S also warrants monitoring for potential overvaluation risks.

In summary, the data indicates a robust growth environment for the company, with substantial increases in market price and sales per share accompanied by a rising P/S ratio. These patterns collectively reflect positive market sentiment and operational performance improvements, underlining the company's strengthening position in its industry.

The analysis of the financial data reveals notable trends in the market valuation and book value of the company over the five-year period ending March 31, 2024.

Share Price (US$)

The share price demonstrated substantial growth, starting from $16.57 in 2020 and increasing to $184.77 by 2024. This indicates a more than tenfold increase in market price over the period. While there was a slight decline from 2021 ($28.52) to 2022 ($24.63), the subsequent years showed strong upward momentum, particularly a significant surge between 2022 and 2023.

Book Value Per Share (BVPS, US$)

Book value per share exhibited steady growth across the years, rising from $4.84 in 2020 to $11.49 in 2024. This upward trend reflects an improvement in the company’s net asset base on a per-share basis, with consistent increases each year without any reversals.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio moved in a pattern reflective of the share price changes, beginning at 3.42 in 2020, increasing sharply to 5.46 in 2021, then dipping to 4.12 in 2022. Thereafter, it surged dramatically to 13.65 in 2023 and further to 16.09 in 2024. This substantial increase indicates that the market valuation is growing disproportionately faster than the book value, suggesting rising investor optimism, potential growth expectations, or possibly overvaluation compared to underlying net assets.

Overall, the data suggest a strong market confidence in the company, as evidenced by the sharp rise in share price and P/BV ratio, accompanied by steady improvement in tangible book value. The divergence between share price appreciation and book value growth in the last two years highlights the market’s increasing premium on the company’s future prospects relative to its current net asset value.