Abiomed Inc. (NASDAQ:ABMD)

The data reveals significant trends in the company's share price, sales per share, and price-to-sales (P/S) ratio over the period from mid-2005 to mid-2022. Each of these indicators shows dynamic movements reflective of varying market conditions and company performance.

Share Price

The share price demonstrates notable volatility with an overall upward trajectory. Beginning at $9.25 in mid-2005, it experienced moderate fluctuations in the early years, reaching a low point of $7.43 in mid-2009, possibly indicating negative market sentiment during that period. Subsequently, the share price regained momentum, surpassing $20 by 2013. A significant surge occurred between 2014 and 2018, where the share price escalated sharply from $21.71 to a peak of $394.46 in mid-2018. After this peak, the price showed a downward correction, declining to $196.32 by mid-2020, followed by a modest recovery in the subsequent years, settling at $235.75 by mid-2022.

Sales per Share

Sales per share consistently increased throughout the entire period, indicating steady business growth. Starting at $1.46 in mid-2005, it showed gradual growth with minor accelerations during certain intervals. The rise was particularly pronounced after 2012, climbing from $3.21 to $22.64 by mid-2022. This upward trend suggests strengthening revenue generation on a per-share basis, reflecting either overall sales growth, share repurchases, or both.

Price-to-Sales (P/S) Ratio

The P/S ratio exhibited considerable variation over the observed period, reflecting changing market valuations relative to revenues. Initially, the ratio hovered between approximately 6 and 8 from 2005 to 2007 before peaking at 11.07 in mid-2008, which may indicate elevated valuation expectations. A significant dip occurred in 2009 to 3.79, the lowest in the series, likely associated with the share price drop during that year. In subsequent years, the ratio rebounded and gradually increased, reaching notably high levels after 2014, with a peak of 29.55 in mid-2018, coinciding with the peak share price. This elevated ratio suggests heightened investor optimism or expectations about future growth potential. Thereafter, the ratio declined to 10.41 by mid-2022, indicating a moderation of valuation relative to sales.

In summary, the data exhibits a steady improvement in sales per share alongside significant fluctuations in share price and valuation multiples. The peak valuation period around 2018 stands out, marked by exceptionally high share prices and price-to-sales ratios. Following this period, valuation measures have moderated, though sales growth has remained strong, suggesting that the market has adjusted its expectations while the company’s revenue base continues to expand.