Price to Sales (P/S)
since 2005
Calculation
Celgene Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net product sales1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 26, 2019 | 4.13 | = | 89.71 | ÷ | 21.74 | 21.74 | = | 15,265 | ÷ | 702,164,345 | |
| Feb 7, 2018 | 5.52 | = | 95.16 | ÷ | 17.25 | 17.25 | = | 12,973 | ÷ | 752,175,608 | |
| Feb 10, 2017 | 8.04 | = | 115.61 | ÷ | 14.38 | 14.38 | = | 11,185 | ÷ | 777,966,471 | |
| Feb 11, 2016 | 8.50 | = | 99.59 | ÷ | 11.72 | 11.72 | = | 9,161 | ÷ | 781,664,535 | |
| Feb 20, 2015 | 13.06 | = | 123.43 | ÷ | 9.45 | 9.45 | = | 7,564 | ÷ | 800,590,656 | |
| Feb 13, 2014 | 10.51 | = | 82.37 | ÷ | 7.83 | 7.83 | = | 6,362 | ÷ | 812,040,158 | |
| Feb 15, 2013 | 7.68 | = | 49.39 | ÷ | 6.43 | 6.43 | = | 5,386 | ÷ | 837,488,894 | |
| Feb 22, 2012 | 6.97 | = | 37.32 | ÷ | 5.36 | 5.36 | = | 4,700 | ÷ | 877,620,608 | |
| Mar 1, 2011 | 7.03 | = | 26.51 | ÷ | 3.77 | 3.77 | = | 3,508 | ÷ | 929,797,930 | |
| Feb 18, 2010 | 10.73 | = | 29.95 | ÷ | 2.79 | 2.79 | = | 2,567 | ÷ | 919,461,836 | |
| Feb 17, 2009 | 11.15 | = | 25.94 | ÷ | 2.33 | 2.33 | = | 2,138 | ÷ | 918,926,334 | |
| Feb 20, 2008 | 17.04 | = | 27.44 | ÷ | 1.61 | 1.61 | = | 1,300 | ÷ | 807,518,156 | |
| Feb 27, 2007 | 24.74 | = | 26.59 | ÷ | 1.07 | 1.07 | = | 812 | ÷ | 755,105,544 | |
| Mar 15, 2006 | 31.74 | = | 20.50 | ÷ | 0.65 | 0.65 | = | 446 | ÷ | 689,939,580 |
Based on: 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 Celgene Corp. Annual Report.
The financial trajectory between 2006 and 2019 is characterized by an inverse relationship between consistent top-line growth and the valuation multiple. While sales per share grew aggressively and uninterrupted, the Price-to-Sales (P/S) ratio experienced a substantial long-term contraction, indicating a shift in how the market valued each dollar of revenue over this period.
- Price-to-Sales (P/S) Ratio Analysis
- A significant downward trend is observed in the P/S ratio, which declined from a high of 31.74 in 2006 to 4.13 by 2019. This contraction occurred in three distinct phases. First, a sharp decline took place between 2006 and 2011, where the ratio fell from 31.74 to 7.03. Second, a period of valuation expansion occurred between 2012 and 2015, with the ratio peaking at 13.06. Finally, a steady decline resumed from 2016 through 2019, ending at the lowest point in the analyzed period.
- Sales per Share Performance
- Sales per share demonstrated consistent and robust growth throughout the entire timeframe. Starting at 0.65 US$ in 2006, the figure increased every year without exception, reaching 21.74 US$ by 2019. This represents an increase of approximately 3,237%, reflecting strong fundamental growth in revenue generation relative to the number of shares outstanding.
- Share Price Correlation
- The share price exhibited a general upward trend, rising from 20.50 US$ in 2006 to a peak of 123.43 US$ in 2015, before settling at 89.71 US$ in 2019. However, the growth in share price did not keep pace with the growth in sales per share. This discrepancy explains the overall compression of the P/S ratio; the market's willingness to pay a premium for the company's revenue diminished significantly as the company matured and its sales volume expanded.
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Comparison to Competitors
Celgene Corp., P/S, long-term trends, comparison to competitors
| Celgene Corp. | 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 26, 2019 | 4.13 | 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 7, 2018 | 5.52 | 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 10, 2017 | 8.04 | 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 11, 2016 | 8.50 | 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 20, 2015 | 13.06 | 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 13, 2014 | 10.51 | 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 15, 2013 | 7.68 | 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 22, 2012 | 6.97 | — | 3.52 | 2.63 | 2.28 | 1.87 | 4.22 | 2.75 | 2.43 | 2.37 | 20.90 | 1.77 | 5.61 |
| Mar 1, 2011 | 7.03 | — | 3.32 | 2.23 | 2.48 | 1.73 | 4.19 | 2.65 | 2.18 | 2.27 | 7.38 | 2.00 | 56.82 |
| Feb 18, 2010 | 10.73 | — | 3.88 | 2.27 | 2.16 | 1.82 | 6.64 | 2.82 | 4.23 | 2.83 | 5.74 | 1.98 | 80.12 |
| Feb 17, 2009 | 11.15 | — | 3.44 | 1.96 | 1.30 | 1.66 | 8.03 | 2.37 | 2.14 | 1.72 | 5.17 | 1.44 | 28.70 |
| Feb 20, 2008 | 17.04 | — | 3.46 | 2.30 | 2.16 | 3.05 | 10.90 | 2.95 | 4.04 | 3.11 | 11.94 | 2.40 | 12.17 |
| Feb 27, 2007 | 24.74 | — | 5.41 | 3.07 | 2.30 | 3.80 | 12.67 | 3.53 | 4.23 | 3.67 | 19.70 | 5.05 | 17.58 |
| Mar 15, 2006 | 31.74 | — | 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: 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)
Celgene Corp., P/S, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Celgene Corp. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 26, 2019 | 4.13 | 4.54 |
| Feb 7, 2018 | 5.52 | 4.60 |
| Feb 10, 2017 | 8.04 | 4.29 |
| Feb 11, 2016 | 8.50 | 4.10 |
| Feb 20, 2015 | 13.06 | 4.54 |
| Feb 13, 2014 | 10.51 | 4.30 |
| Feb 15, 2013 | 7.68 | 3.25 |
| Feb 22, 2012 | 6.97 | 2.58 |
| Mar 1, 2011 | 7.03 | 2.44 |
| Feb 18, 2010 | 10.73 | 3.00 |
| Feb 17, 2009 | 11.15 | 2.22 |
| Feb 20, 2008 | 17.04 | 3.19 |
| Feb 27, 2007 | 24.74 | 3.88 |
| Mar 15, 2006 | 31.74 | 3.84 |
Based on: 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)
Celgene Corp., P/S, long-term trends, comparison to industry (health care)
| Celgene Corp. | Health Care | |
|---|---|---|
| Feb 26, 2019 | 4.13 | 3.07 |
| Feb 7, 2018 | 5.52 | 3.06 |
| Feb 10, 2017 | 8.04 | 2.80 |
| Feb 11, 2016 | 8.50 | 2.72 |
| Feb 20, 2015 | 13.06 | 3.08 |
| Feb 13, 2014 | 10.51 | 2.81 |
| Feb 15, 2013 | 7.68 | 2.20 |
| Feb 22, 2012 | 6.97 | 1.90 |
| Mar 1, 2011 | 7.03 | 1.80 |
| Feb 18, 2010 | 10.73 | 2.08 |
| Feb 17, 2009 | 11.15 | 1.70 |
| Feb 20, 2008 | 17.04 | 2.42 |
| Feb 27, 2007 | 24.74 | 2.85 |
| Mar 15, 2006 | 31.74 | 3.17 |
Based on: 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).