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- Market Value Ratio Analysis of Square Pharmaceutical Ltd Bangladesh (Part-6)
Market Value Ratio Analysis of Square Pharmaceutical Ltd Bangladesh (Part-6)
- By humpty dumpty
- Published 4 February 2012
- Bangladesh Study
- Unrated
Earnings per Share
Square Pharmaceuticals Limited Bangladesh had earnings per share of 180.55 BDT on average during FY 2006-2010. Earnings per share represent a firm’s profits from its each outstanding share. The company had outstanding shares of 9,406,908 on average and had increased by 203.75% during FY 2006-2010. At the same time net profit of the company was 1,565,779,054 BDT on average and had increased by 79.08%
In FY 2006, EPS was highest among last 5 (five) FY. Moreover, EPS after FY 2006 begun to fall, reached the minimum at FY 2010. Though, a descending EPS does not mean that the firm had performed badly during that fiscal period. In contrary, net profit and outstanding number of share had changed annually at a rate of 16.26% and 32.50% on average respectively during FY 2006-2010.
Therefore, EPS of this company were falling after FY 2006 because the annual growth rate of outstanding share was greater than the annual growth rate of net profit.
Earnings per Share
2006 2007 2008 2009 2010
234.67 218.61 154.53 156.56 138.36
Table of Earnings per Share ratio for Fiscal Year 2006-2010
PE Ratio
Square Pharmaceuticals Limited Bangladesh had PE ratio of 18.42 on average during FY 2006-2010. PE ratio represents how much an investor is paying for one taka of current earning. A higher PE ratio shows that the firm has prospect for good return in future and a lower PE ratio refers opposite. Historical report on square pharmaceuticals shows that the firm’s price of share fluctuated during FY 2006-2010 a lot. In FY 2008 and 2009, the price per share was 4,110 BDT and 2,935 BDT respectively. So the price per share of FY 2009 was 28.59% less than its preceding year and it was 22.01% greater in FY 2010 than FY 2009.
In FY 2006, EPS was highest among last 5 (five) FY. Moreover, EPS after FY 2006 begun to fall, hit the minimum point at FY 2010 as stated in previous segment of ratio analysis. The EPS was recorded lowest in FY 2010, among last 5 (five) FY. The EPS of FY 2008 was 29.31% less than its preceding year. However the following fiscal year had an increase of 1.31% in EPS and FY 2010 had a decrease of EPS by -11.62% compared to FY 2009. Therefore, the inconsistent growth of EPS and PPS causes an inconsistent PE ratio throughout the FY 2006-2010. And based on current PE ratio, investors are expecting a great prospect of the company since 25.88 is a good figure as a PE ratio.
PE Ratio
2006 2007 2008 2009 2010
9.70 11.19 26.60 18.75 25.88
Table of PE Ratio for Fiscal Year 2006-2010
Sales per Share
Square Pharmaceuticals Limited Bangladesh had sales per share of 996.11 BDT on average during FY 2006-2010. Sales per share represent a firm’s net revenue from its each outstanding share. The company had outstanding shares of 9,406,908 on average and had increased by 203.75% during FY 2006-2010. At the same time net sales of the company had increased by 8,626,387,092 BDT on average and had increased by 88.22%.
In FY 2007, SPS was highest among last 5 (five) FY. Moreover, SPS after FY 2007 begun to fall, reached the minimum at FY 2010. Though, a descending SPS does not mean that the firm had performed badly during that fiscal period. In contrary, net sales and outstanding number of share had changed annually at a rate of 17.23% and 32.50% on average respectively during FY 2006-2010.
Therefore, SPS of this company were falling after FY 2007 because the annual growth rate of outstanding share was greater than the annual growth rate of net sales.
Sales per Share
2006 2007 2008 2009 2010
1225.83 1258.19 923.45 813.50 759.60
Table of Sale per share Ratio for Fiscal Year 2006-2010
Price- Sales Ratio
Square Pharmaceuticals Limited Bangladesh had price-sales ratio of 3.31 on average during FY 2006-2010. The smaller this ratio (less than 1.0) is usually thought to be a better investment since the investor is paying less for each unit of sales. Historical report on square pharmaceuticals shows that the firm’s price of share fluctuated during FY 2006-2010 a lot. In FY 2008 and 2009, the price per share was 4,110 BDT and 2,935 BDT respectively. The price per share of FY 2009 was 28.59% less than its preceding year and it was 22.01% greater in FY 2010 than FY 2009.
In FY 2006, SPS was highest among last 5 (five) FY. Moreover, SPS after FY 2007 begun to fall, reached the minimum at FY 2010 as stated in previous segment of ratio analysis. The SPS of FY 2008 was 26.60% less than its preceding year. However, SPS of FY 2009 and 2010 had decreased by 11.62% and 6.63% compared to their respective previous year. Therefore, the company had been doing bad cause the investors were paying more for each unit of sales as the price-sales ratio had increased after FY 2007.
Price-Sales Ratio
2006 2007 2008 2009 2010
1.86 1.94 4.45 3.61 4.71
Table of Price-Sales Ratio for Fiscal Year 2006-2010
Book Value per Share
Square Pharmaceuticals Limited Bangladesh had Book value per share of 1009.96 BDT on average during FY 2006-2010. This ratio states a firm’s value of equity per outstanding share. The company had outstanding shares of 9,406,908 on average and had increased by 203.75% during FY 2006-2010. At the same time total equity of the company was 8,731,218,110 BDT on average and had increased by 80.48%
In FY 2006, BPS was highest among last 5 (five) FY. Moreover, BPS after FY 2006 begun to fall, reached the minimum at FY 2010. Though, a descending BPS does not mean that the firm had performed badly during that fiscal period. In contrary, total equity and outstanding number of share had changed annually at a rate of 15.92% and 32.50% on average respectively during FY 2006-2010.
Therefore, BPS of this company was falling after FY 2006 because the annual growth rate of outstanding share was greater than the annual growth rate of total equity.
Book Value Per Share
2006 2007 2008 2009 2010
288.65 1230.08 941.25 824.16 765.68
Table of Book Value per Share Ratio for Fiscal Year 2006-2010
Market to Book Ratio
Square Pharmaceuticals Limited Bangladesh had market to book ratio of 3.27 on average during FY 2006-2010. This ratio states comparison between firm’s market value and its cost of investment. A higher market to book ratio shows that firm’s market values is greater than its book value and negative ratio shows that firm’s market value is less than its book value. In FY 2008 and 2009, the price per share was 4,110 BDT and 2,935 BDT respectively. The price per share of FY 2009 was 28.59% less than its preceding year and it was 22.01% greater in FY 2010 than FY 2009.
In FY 2006, BPS was highest among last 5 (five) FY. Moreover, BPS after FY 2006 begun to fall alike EPS and reached at FY 2010 it was minimum of last 5 FY. In FY 2008 and 2009, the BPS was 23.48% and 12.44% correspondingly less than their respective previous year. As a result the book value per share dropped to 12.44% in FY 2009 and 7.09% in FY 2010 compared to their respective previous year. But, the market to book ratio increased to a better figure and clearly states that the company’s market value had increased.
Market to Book Value Ratio
2006 2007 2008 2009 2010
1.77 1.99 4.37 3.56 4.68
Table of Market to Book Ratio for Fiscal Year 2006-2010
Square Pharmaceuticals Limited Bangladesh had earnings per share of 180.55 BDT on average during FY 2006-2010. Earnings per share represent a firm’s profits from its each outstanding share. The company had outstanding shares of 9,406,908 on average and had increased by 203.75% during FY 2006-2010. At the same time net profit of the company was 1,565,779,054 BDT on average and had increased by 79.08%
In FY 2006, EPS was highest among last 5 (five) FY. Moreover, EPS after FY 2006 begun to fall, reached the minimum at FY 2010. Though, a descending EPS does not mean that the firm had performed badly during that fiscal period. In contrary, net profit and outstanding number of share had changed annually at a rate of 16.26% and 32.50% on average respectively during FY 2006-2010.
Therefore, EPS of this company were falling after FY 2006 because the annual growth rate of outstanding share was greater than the annual growth rate of net profit.
Earnings per Share
2006 2007 2008 2009 2010
234.67 218.61 154.53 156.56 138.36
Table of Earnings per Share ratio for Fiscal Year 2006-2010
PE Ratio
Square Pharmaceuticals Limited Bangladesh had PE ratio of 18.42 on average during FY 2006-2010. PE ratio represents how much an investor is paying for one taka of current earning. A higher PE ratio shows that the firm has prospect for good return in future and a lower PE ratio refers opposite. Historical report on square pharmaceuticals shows that the firm’s price of share fluctuated during FY 2006-2010 a lot. In FY 2008 and 2009, the price per share was 4,110 BDT and 2,935 BDT respectively. So the price per share of FY 2009 was 28.59% less than its preceding year and it was 22.01% greater in FY 2010 than FY 2009.
In FY 2006, EPS was highest among last 5 (five) FY. Moreover, EPS after FY 2006 begun to fall, hit the minimum point at FY 2010 as stated in previous segment of ratio analysis. The EPS was recorded lowest in FY 2010, among last 5 (five) FY. The EPS of FY 2008 was 29.31% less than its preceding year. However the following fiscal year had an increase of 1.31% in EPS and FY 2010 had a decrease of EPS by -11.62% compared to FY 2009. Therefore, the inconsistent growth of EPS and PPS causes an inconsistent PE ratio throughout the FY 2006-2010. And based on current PE ratio, investors are expecting a great prospect of the company since 25.88 is a good figure as a PE ratio.
PE Ratio
2006 2007 2008 2009 2010
9.70 11.19 26.60 18.75 25.88
Table of PE Ratio for Fiscal Year 2006-2010
Sales per Share
Square Pharmaceuticals Limited Bangladesh had sales per share of 996.11 BDT on average during FY 2006-2010. Sales per share represent a firm’s net revenue from its each outstanding share. The company had outstanding shares of 9,406,908 on average and had increased by 203.75% during FY 2006-2010. At the same time net sales of the company had increased by 8,626,387,092 BDT on average and had increased by 88.22%.
In FY 2007, SPS was highest among last 5 (five) FY. Moreover, SPS after FY 2007 begun to fall, reached the minimum at FY 2010. Though, a descending SPS does not mean that the firm had performed badly during that fiscal period. In contrary, net sales and outstanding number of share had changed annually at a rate of 17.23% and 32.50% on average respectively during FY 2006-2010.
Therefore, SPS of this company were falling after FY 2007 because the annual growth rate of outstanding share was greater than the annual growth rate of net sales.
Sales per Share
2006 2007 2008 2009 2010
1225.83 1258.19 923.45 813.50 759.60
Table of Sale per share Ratio for Fiscal Year 2006-2010
Price- Sales Ratio
Square Pharmaceuticals Limited Bangladesh had price-sales ratio of 3.31 on average during FY 2006-2010. The smaller this ratio (less than 1.0) is usually thought to be a better investment since the investor is paying less for each unit of sales. Historical report on square pharmaceuticals shows that the firm’s price of share fluctuated during FY 2006-2010 a lot. In FY 2008 and 2009, the price per share was 4,110 BDT and 2,935 BDT respectively. The price per share of FY 2009 was 28.59% less than its preceding year and it was 22.01% greater in FY 2010 than FY 2009.
In FY 2006, SPS was highest among last 5 (five) FY. Moreover, SPS after FY 2007 begun to fall, reached the minimum at FY 2010 as stated in previous segment of ratio analysis. The SPS of FY 2008 was 26.60% less than its preceding year. However, SPS of FY 2009 and 2010 had decreased by 11.62% and 6.63% compared to their respective previous year. Therefore, the company had been doing bad cause the investors were paying more for each unit of sales as the price-sales ratio had increased after FY 2007.
Price-Sales Ratio
2006 2007 2008 2009 2010
1.86 1.94 4.45 3.61 4.71
Table of Price-Sales Ratio for Fiscal Year 2006-2010
Book Value per Share
Square Pharmaceuticals Limited Bangladesh had Book value per share of 1009.96 BDT on average during FY 2006-2010. This ratio states a firm’s value of equity per outstanding share. The company had outstanding shares of 9,406,908 on average and had increased by 203.75% during FY 2006-2010. At the same time total equity of the company was 8,731,218,110 BDT on average and had increased by 80.48%
In FY 2006, BPS was highest among last 5 (five) FY. Moreover, BPS after FY 2006 begun to fall, reached the minimum at FY 2010. Though, a descending BPS does not mean that the firm had performed badly during that fiscal period. In contrary, total equity and outstanding number of share had changed annually at a rate of 15.92% and 32.50% on average respectively during FY 2006-2010.
Therefore, BPS of this company was falling after FY 2006 because the annual growth rate of outstanding share was greater than the annual growth rate of total equity.
Book Value Per Share
2006 2007 2008 2009 2010
288.65 1230.08 941.25 824.16 765.68
Table of Book Value per Share Ratio for Fiscal Year 2006-2010
Market to Book Ratio
Square Pharmaceuticals Limited Bangladesh had market to book ratio of 3.27 on average during FY 2006-2010. This ratio states comparison between firm’s market value and its cost of investment. A higher market to book ratio shows that firm’s market values is greater than its book value and negative ratio shows that firm’s market value is less than its book value. In FY 2008 and 2009, the price per share was 4,110 BDT and 2,935 BDT respectively. The price per share of FY 2009 was 28.59% less than its preceding year and it was 22.01% greater in FY 2010 than FY 2009.
In FY 2006, BPS was highest among last 5 (five) FY. Moreover, BPS after FY 2006 begun to fall alike EPS and reached at FY 2010 it was minimum of last 5 FY. In FY 2008 and 2009, the BPS was 23.48% and 12.44% correspondingly less than their respective previous year. As a result the book value per share dropped to 12.44% in FY 2009 and 7.09% in FY 2010 compared to their respective previous year. But, the market to book ratio increased to a better figure and clearly states that the company’s market value had increased.
Market to Book Value Ratio
2006 2007 2008 2009 2010
1.77 1.99 4.37 3.56 4.68
Table of Market to Book Ratio for Fiscal Year 2006-2010
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Article Series
This article is part 6 of a 8 part series. Other articles in this series are shown below:
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Market Value Ratio Analysis of Square Pharmaceutical Ltd Bangladesh (Part-6)