Price to Sales (P/S)
since 2005
Calculation
Biogen Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 3, 2022 | 2.95 | = | 220.17 | ÷ | 74.72 | 74.72 | = | 10,981,700 | ÷ | 146,962,793 | |
| Feb 3, 2021 | 2.98 | = | 263.25 | ÷ | 88.26 | 88.26 | = | 13,444,600 | ÷ | 152,335,731 | |
| Feb 6, 2020 | 4.08 | = | 337.24 | ÷ | 82.60 | 82.60 | = | 14,377,900 | ÷ | 174,064,011 | |
| Feb 6, 2019 | 4.87 | = | 333.24 | ÷ | 68.39 | 68.39 | = | 13,452,900 | ÷ | 196,708,784 | |
| Feb 1, 2018 | 5.96 | = | 346.00 | ÷ | 58.02 | 58.02 | = | 12,273,900 | ÷ | 211,562,686 | |
| Feb 2, 2017 | 4.98 | = | 264.23 | ÷ | 53.02 | 53.02 | = | 11,448,800 | ÷ | 215,951,945 | |
| Feb 3, 2016 | 5.49 | = | 270.43 | ÷ | 49.22 | 49.22 | = | 10,763,800 | ÷ | 218,672,717 | |
| Feb 4, 2015 | 9.46 | = | 391.12 | ÷ | 41.36 | 41.36 | = | 9,703,324 | ÷ | 234,614,474 | |
| Feb 6, 2014 | 10.26 | = | 301.01 | ÷ | 29.32 | 29.32 | = | 6,932,199 | ÷ | 236,393,930 | |
| Feb 5, 2013 | 6.74 | = | 157.36 | ÷ | 23.34 | 23.34 | = | 5,516,461 | ÷ | 236,312,191 | |
| Feb 3, 2012 | 5.76 | = | 121.88 | ÷ | 21.15 | 21.15 | = | 5,048,634 | ÷ | 238,725,065 | |
| Feb 4, 2011 | 3.37 | = | 65.93 | ÷ | 19.58 | 19.58 | = | 4,716,423 | ÷ | 240,911,883 | |
| Feb 9, 2010 | 3.33 | = | 54.09 | ÷ | 16.24 | 16.24 | = | 4,377,348 | ÷ | 269,601,262 | |
| Feb 6, 2009 | 3.81 | = | 52.48 | ÷ | 13.78 | 13.78 | = | 4,097,507 | ÷ | 297,252,825 | |
| Feb 14, 2008 | 5.90 | = | 62.87 | ÷ | 10.65 | 10.65 | = | 3,171,617 | ÷ | 297,750,601 | |
| Feb 21, 2007 | 6.00 | = | 47.02 | ÷ | 7.84 | 7.84 | = | 2,683,049 | ÷ | 342,436,836 | |
| Mar 3, 2006 | 6.46 | = | 45.50 | ÷ | 7.04 | 7.04 | = | 2,422,500 | ÷ | 344,098,779 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Biogen Inc. Annual Report.
The analysis of the relationship between share price and sales per share from 2006 to 2022 reveals a significant divergence between fundamental revenue growth and market valuation multiples. While sales per share exhibited a consistent long-term upward trajectory, the Price to Sales (P/S) ratio experienced substantial volatility, characterized by a period of aggressive expansion followed by a prolonged contraction.
- Revenue Growth Trends
- Sales per share demonstrated sustained growth for the majority of the period, rising from 7.04 US$ in 2006 to a peak of 88.26 US$ in 2021. This represents a significant increase in the company's ability to generate revenue on a per-share basis over fifteen years. A reversal in this trend occurred in 2022, with sales per share declining to 74.72 US$.
- Valuation Volatility and Peak
- The P/S ratio remained relatively stable between 2006 and 2011, fluctuating between 3.33 and 6.46. A period of rapid valuation expansion began in 2012, culminating in a peak P/S ratio of 10.26 in 2014. This peak coincided with a sharp increase in share price, which rose from 121.88 US$ in 2012 to 301.01 US$ in 2014, indicating a period where market expectations significantly outpaced revenue growth.
- Multiple Compression
- Following the 2014 peak, a consistent downward trend in the P/S ratio is observed. From 2015 to 2022, the ratio compressed from 9.46 to 2.95. This decline occurred despite sales per share remaining at historically high levels compared to the 2006-2011 period. The contraction suggests a market re-evaluation of the company's revenue streams, resulting in a lower valuation multiple applied to each dollar of sales.
- Correlation Analysis
- The data indicates that share price movements were the primary driver of P/S ratio fluctuations rather than sales performance. For instance, between 2016 and 2020, sales per share continued to grow from 49.22 US$ to 82.60 US$, yet the P/S ratio declined from 5.49 to 4.08, reflecting a decrease in the premium the market was willing to pay for those earnings.
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Comparison to Competitors
Biogen Inc., P/S, long-term trends, comparison to competitors
| Biogen Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 3, 2022 | 2.95 | 4.53 | 5.10 | 3.16 | 6.37 | 8.01 | 2.85 | 4.66 | 3.96 | 3.15 | 4.20 | 5.39 | 8.21 |
| Feb 3, 2021 | 2.98 | 4.05 | 5.64 | 3.16 | 7.01 | 8.06 | 3.24 | 5.15 | 3.93 | 4.42 | 6.24 | 5.52 | 8.82 |
| Feb 6, 2020 | 4.08 | 4.22 | 6.03 | 5.52 | 6.29 | 6.03 | 4.00 | 4.79 | 4.33 | 3.66 | 5.34 | 4.83 | 14.95 |
| Feb 6, 2019 | 4.87 | 3.58 | 5.22 | 3.67 | 3.97 | 5.15 | 3.84 | 4.45 | 4.92 | 4.49 | 6.62 | 4.24 | 15.54 |
| Feb 1, 2018 | 5.96 | 6.67 | 5.82 | 5.02 | 3.70 | 3.71 | 4.10 | 4.56 | 3.68 | 4.05 | 5.92 | 4.01 | 16.42 |
| Feb 2, 2017 | 4.98 | 3.84 | 5.65 | 4.72 | 3.48 | 4.18 | 3.08 | 4.62 | 4.54 | 3.84 | 7.86 | 3.37 | 12.51 |
| Feb 3, 2016 | 5.49 | 3.83 | 5.28 | 6.07 | 2.91 | 4.02 | 3.80 | 4.13 | 3.56 | 3.76 | 9.38 | 3.05 | 20.38 |
| Feb 4, 2015 | 9.46 | 4.90 | 6.13 | 6.28 | 3.09 | 4.03 | 6.36 | 3.77 | 3.93 | 4.24 | 14.62 | 3.06 | 47.41 |
| Feb 6, 2014 | 10.26 | 4.31 | 5.22 | 5.48 | 2.78 | 2.81 | 11.95 | 3.63 | 3.78 | 3.97 | 15.52 | 3.74 | 16.53 |
| Feb 5, 2013 | 6.74 | 3.30 | 4.09 | 3.40 | 2.32 | 2.71 | 6.95 | 3.17 | 2.73 | 3.34 | 11.66 | 2.12 | 6.60 |
| Feb 3, 2012 | 5.76 | — | 3.52 | 2.63 | 2.28 | 1.87 | 4.22 | 2.75 | 2.43 | 2.37 | 20.90 | 1.77 | 5.61 |
| Feb 4, 2011 | 3.37 | — | 3.32 | 2.23 | 2.48 | 1.73 | 4.19 | 2.65 | 2.18 | 2.27 | 7.38 | 2.00 | 56.82 |
| Feb 9, 2010 | 3.33 | — | 3.88 | 2.27 | 2.16 | 1.82 | 6.64 | 2.82 | 4.23 | 2.83 | 5.74 | 1.98 | 80.12 |
| Feb 6, 2009 | 3.81 | — | 3.44 | 1.96 | 1.30 | 1.66 | 8.03 | 2.37 | 2.14 | 1.72 | 5.17 | 1.44 | 28.70 |
| Feb 14, 2008 | 5.90 | — | 3.46 | 2.30 | 2.16 | 3.05 | 10.90 | 2.95 | 4.04 | 3.11 | 11.94 | 2.40 | 12.17 |
| Feb 21, 2007 | 6.00 | — | 5.41 | 3.07 | 2.30 | 3.80 | 12.67 | 3.53 | 4.23 | 3.67 | 19.70 | 5.05 | 17.58 |
| Mar 3, 2006 | 6.46 | — | 7.24 | 2.34 | 2.40 | 4.31 | 15.36 | 3.49 | 3.50 | 3.77 | 14.06 | 2.15 | 26.93 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Biogen Inc., P/S, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Biogen Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 3, 2022 | 2.95 | 4.50 |
| Feb 3, 2021 | 2.98 | 4.90 |
| Feb 6, 2020 | 4.08 | 4.88 |
| Feb 6, 2019 | 4.87 | 4.54 |
| Feb 1, 2018 | 5.96 | 4.60 |
| Feb 2, 2017 | 4.98 | 4.29 |
| Feb 3, 2016 | 5.49 | 4.10 |
| Feb 4, 2015 | 9.46 | 4.54 |
| Feb 6, 2014 | 10.26 | 4.30 |
| Feb 5, 2013 | 6.74 | 3.25 |
| Feb 3, 2012 | 5.76 | 2.58 |
| Feb 4, 2011 | 3.37 | 2.44 |
| Feb 9, 2010 | 3.33 | 3.00 |
| Feb 6, 2009 | 3.81 | 2.22 |
| Feb 14, 2008 | 5.90 | 3.19 |
| Feb 21, 2007 | 6.00 | 3.88 |
| Mar 3, 2006 | 6.46 | 3.84 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Biogen Inc., P/S, long-term trends, comparison to industry (health care)
| Biogen Inc. | Health Care | |
|---|---|---|
| Feb 3, 2022 | 2.95 | 3.28 |
| Feb 3, 2021 | 2.98 | 3.31 |
| Feb 6, 2020 | 4.08 | 3.21 |
| Feb 6, 2019 | 4.87 | 3.07 |
| Feb 1, 2018 | 5.96 | 3.06 |
| Feb 2, 2017 | 4.98 | 2.80 |
| Feb 3, 2016 | 5.49 | 2.72 |
| Feb 4, 2015 | 9.46 | 3.08 |
| Feb 6, 2014 | 10.26 | 2.81 |
| Feb 5, 2013 | 6.74 | 2.20 |
| Feb 3, 2012 | 5.76 | 1.90 |
| Feb 4, 2011 | 3.37 | 1.80 |
| Feb 9, 2010 | 3.33 | 2.08 |
| Feb 6, 2009 | 3.81 | 1.70 |
| Feb 14, 2008 | 5.90 | 2.42 |
| Feb 21, 2007 | 6.00 | 2.85 |
| Mar 3, 2006 | 6.46 | 3.17 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).