5.

Market Value Mearsure

5.1: price earnings ratio

  2018 2017 2016

price per share 23.59 23.79 22.72

earnings per share 9.73 9.81 9.43

Price earnings ratio 2.42 2.43 2.41

The P/E decrease from 2.41 (2016) to 2.43 (2017) mean that a SANOFI's
stock is priced higher, investors are expecting high growth rates in the
future.
However, in 2018 the SANOFI's stock has reduce to 2.42, mean that
Investors have reassessed the company's growth. It come from the
earning per share decrease from 9.81 ( 2017) to 9.73 ( 2018). Beacause
Analysis and investors review a company's P/E ratio when they
determine if the share price accurately represents the projected earnings
per share, this forward-looking indicator is useful for comparing current
earnings to future earnings and helps provide a clearer picture of what
earnings will look like – without changes and other accounting
adjustments.

5.2: market-to-book ratio

  2018 2017 2016

market value per share 23.59 23.79 22.72

book value per share 23.63 23.15 22.62

market-to-book ratio 0.998 1.028 1.004

The ratio is used to compare a business’s net assets that are available in relation to the sales price of its
stock. In 2017, the Market-to-book ratio of SANOFI is 1.028 > 1 => The a higher ratio (greater than 1)
could mean the SANOFI’s stock is overvalued (i.e. it has performed well). However, in 2018, the Market-
to-book ratio is 0.998 < 1 => It mean that a low ratio (less than 1) could indicate that the stock is
undervalued (i.e. a bad investment). A low ratio could also indicate that there is something wrong with
the company.