Price to Sales (P/S)
since 2006
Calculation
First Solar Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2024 | 4.67 | = | 144.99 | ÷ | 31.06 | 31.06 | = | 3,318,602 | ÷ | 106,848,929 | |
| Feb 28, 2023 | 6.88 | = | 169.14 | ÷ | 24.57 | 24.57 | = | 2,619,319 | ÷ | 106,609,094 | |
| Mar 1, 2022 | 2.75 | = | 75.62 | ÷ | 27.49 | 27.49 | = | 2,923,377 | ÷ | 106,333,764 | |
| Feb 26, 2021 | 3.17 | = | 81.02 | ÷ | 25.58 | 25.58 | = | 2,711,332 | ÷ | 105,986,398 | |
| Feb 21, 2020 | 1.74 | = | 50.59 | ÷ | 29.05 | 29.05 | = | 3,063,117 | ÷ | 105,457,669 | |
| Feb 22, 2019 | 2.51 | = | 53.73 | ÷ | 21.39 | 21.39 | = | 2,244,044 | ÷ | 104,894,572 | |
| Feb 23, 2018 | 2.19 | = | 61.79 | ÷ | 28.15 | 28.15 | = | 2,941,324 | ÷ | 104,474,656 | |
| Feb 22, 2017 | 1.18 | = | 33.57 | ÷ | 28.37 | 28.37 | = | 2,951,328 | ÷ | 104,044,691 | |
| Feb 24, 2016 | 1.97 | = | 69.45 | ÷ | 35.17 | 35.17 | = | 3,578,995 | ÷ | 101,767,670 | |
| Feb 25, 2015 | 1.73 | = | 58.54 | ÷ | 33.82 | 33.82 | = | 3,391,814 | ÷ | 100,291,843 | |
| Feb 26, 2014 | 1.59 | = | 52.74 | ÷ | 33.25 | 33.25 | = | 3,308,989 | ÷ | 99,512,794 | |
| Feb 27, 2013 | 0.70 | = | 27.04 | ÷ | 38.65 | 38.65 | = | 3,368,545 | ÷ | 87,156,517 | |
| Feb 29, 2012 | 1.01 | = | 32.30 | ÷ | 31.98 | 31.98 | = | 2,766,207 | ÷ | 86,485,999 | |
| Feb 28, 2011 | 4.94 | = | 147.39 | ÷ | 29.84 | 29.84 | = | 2,563,515 | ÷ | 85,895,081 | |
| Feb 22, 2010 | 4.66 | = | 113.09 | ÷ | 24.24 | 24.24 | = | 2,066,200 | ÷ | 85,229,228 | |
| Feb 25, 2009 | 7.05 | = | 107.65 | ÷ | 15.27 | 15.27 | = | 1,246,301 | ÷ | 81,643,905 | |
| Feb 21, 2008 | 33.02 | = | 211.59 | ÷ | 6.41 | 6.41 | = | 503,976 | ÷ | 78,649,834 | |
| Mar 16, 2007 | 27.62 | = | 51.52 | ÷ | 1.87 | 1.87 | = | 134,974 | ÷ | 72,363,218 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of First Solar Inc. Annual Report.
The Price to Sales (P/S) ratio exhibits extreme volatility over the analyzed period, transitioning from a phase of high speculative valuation to a prolonged period of compression, followed by a recent moderate recovery.
- Initial Speculative Phase (2007-2008)
- A period of exceptionally high valuation is observed, with the P/S ratio peaking at 33.02 in 2008. During this window, the share price increased dramatically from 51.52 to 211.59, far outpacing the growth in sales per share, which suggests an era of high market expectations and aggressive pricing.
- Valuation Compression and Bottoming (2009-2013)
- A severe downward trend in the P/S ratio occurred between 2009 and 2013, falling from 7.05 to a low of 0.70. This contraction happened despite a consistent and significant increase in sales per share, which rose from 15.27 to 38.65. This inverse relationship indicates a substantial devaluation of the company's revenue stream by the market.
- Stabilization Period (2014-2020)
- The P/S ratio entered a phase of relative stability between 2014 and 2020, generally fluctuating between 1.18 and 3.17. During this time, the valuation multiple remained low compared to the early peaks, reflecting a more conservative market pricing of sales.
- Recent Valuation Recovery (2021-2024)
- A renewed increase in the P/S ratio is evident from 2021 onward, reaching a recent peak of 6.88 in February 2023. This spike was primarily driven by a surge in the share price to 169.14. By February 2024, the ratio moderated to 4.67, coinciding with a correction in share price and a recovery in sales per share to 31.06.
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Comparison to Competitors
First Solar Inc., P/S, long-term trends, comparison to competitors
| First Solar Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2024 | 4.67 | 11.95 | 7.31 | 5.08 | 14.46 | 3.40 | 6.47 | 4.99 | 5.92 | 4.94 | 21.33 | 3.45 | 8.26 |
| Feb 28, 2023 | 6.88 | 5.38 | 7.14 | 3.43 | 7.00 | 1.85 | 6.09 | 3.68 | 12.40 | 1.87 | 24.67 | 2.85 | 8.25 |
| Mar 1, 2022 | 2.75 | 8.76 | 12.98 | 5.63 | 9.55 | 2.66 | 7.80 | 5.62 | 10.92 | 2.83 | 20.41 | 4.62 | 8.63 |
| Feb 26, 2021 | 3.17 | 10.63 | 9.03 | 4.69 | 7.40 | 2.96 | 5.43 | 5.43 | 4.66 | 2.73 | 17.31 | 6.20 | 10.81 |
| Feb 21, 2020 | 1.74 | 8.59 | 7.06 | 3.75 | 5.62 | 4.07 | 4.74 | 3.10 | 4.47 | 2.15 | 8.05 | 3.98 | 8.54 |
| Feb 22, 2019 | 2.51 | 3.58 | 5.35 | 1.87 | 4.78 | 3.09 | 4.58 | 2.51 | 4.33 | 1.58 | 15.07 | 3.37 | 6.38 |
| Feb 23, 2018 | 2.19 | 2.28 | 6.40 | 3.82 | 6.07 | 3.39 | 4.00 | 3.25 | 3.40 | 2.30 | 8.76 | 3.54 | 6.83 |
| Feb 22, 2017 | 1.18 | 3.08 | 6.57 | 3.29 | 5.48 | 2.90 | 4.06 | 2.46 | 2.12 | 1.44 | 3.55 | 4.21 | 5.77 |
| Feb 24, 2016 | 1.97 | 0.38 | 5.49 | 2.26 | 5.69 | 2.44 | 2.93 | 2.17 | 2.08 | 1.12 | 2.68 | 3.58 | 4.06 |
| Feb 25, 2015 | 1.73 | 0.43 | 6.04 | 3.29 | 6.06 | 2.91 | 4.08 | 2.50 | 2.26 | 2.12 | 2.36 | 4.85 | 4.73 |
| Feb 26, 2014 | 1.59 | 0.51 | 5.90 | 2.66 | 5.11 | 2.34 | 3.40 | 2.10 | 1.68 | 1.94 | 1.84 | 4.74 | 3.95 |
| Feb 27, 2013 | 0.70 | 0.34 | 4.48 | 1.48 | 3.33 | 1.96 | 2.73 | 2.39 | 2.70 | 0.67 | 2.28 | 5.18 | 2.94 |
| Feb 29, 2012 | 1.01 | 0.79 | 3.32 | 1.38 | 3.01 | 2.47 | 1.90 | 1.38 | 2.83 | 0.62 | 2.94 | 5.86 | 2.78 |
| Feb 28, 2011 | 4.94 | 0.97 | 3.89 | 1.86 | 3.05 | 2.79 | 2.98 | 2.18 | 4.65 | 0.91 | 3.00 | 6.72 | 2.99 |
| Feb 22, 2010 | 4.66 | 0.99 | 4.31 | 3.58 | 2.65 | 3.28 | 3.50 | 3.47 | 1.98 | 1.21 | 1.58 | 7.03 | 2.89 |
| Feb 25, 2009 | 7.05 | 0.22 | 1.91 | 1.71 | — | 1.79 | 2.60 | 1.94 | 2.31 | 0.44 | 2.71 | 4.91 | 1.56 |
| Feb 21, 2008 | 33.02 | 0.72 | 3.67 | 2.52 | — | 3.08 | 4.24 | 1.86 | 4.75 | 1.30 | 3.31 | 7.33 | 2.99 |
| Mar 16, 2007 | 27.62 | 1.45 | 4.48 | 2.77 | — | 3.40 | 4.75 | 3.56 | 10.06 | 2.00 | 3.53 | 7.98 | 3.13 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
First Solar Inc., P/S, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| First Solar Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 27, 2024 | 4.67 | 8.21 |
| Feb 28, 2023 | 6.88 | 5.92 |
| Mar 1, 2022 | 2.75 | 6.36 |
| Feb 26, 2021 | 3.17 | 5.78 |
| Feb 21, 2020 | 1.74 | 4.71 |
| Feb 22, 2019 | 2.51 | 3.84 |
| Feb 23, 2018 | 2.19 | 4.12 |
| Feb 22, 2017 | 1.18 | 3.57 |
| Feb 24, 2016 | 1.97 | 2.78 |
| Feb 25, 2015 | 1.73 | 3.39 |
| Feb 26, 2014 | 1.59 | 2.97 |
| Feb 27, 2013 | 0.70 | 2.50 |
| Feb 29, 2012 | 1.01 | 2.61 |
| Feb 28, 2011 | 4.94 | 2.95 |
| Feb 22, 2010 | 4.66 | 3.36 |
| Feb 25, 2009 | 7.05 | 2.02 |
| Feb 21, 2008 | 33.02 | 3.21 |
| Mar 16, 2007 | 27.62 | 3.67 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).
Comparison to Industry (Information Technology)
First Solar Inc., P/S, long-term trends, comparison to industry (information technology)
| First Solar Inc. | Information Technology | |
|---|---|---|
| Feb 27, 2024 | 4.67 | 7.31 |
| Feb 28, 2023 | 6.88 | 6.01 |
| Mar 1, 2022 | 2.75 | 6.98 |
| Feb 26, 2021 | 3.17 | 6.11 |
| Feb 21, 2020 | 1.74 | 4.62 |
| Feb 22, 2019 | 2.51 | 4.31 |
| Feb 23, 2018 | 2.19 | 4.18 |
| Feb 22, 2017 | 1.18 | 3.46 |
| Feb 24, 2016 | 1.97 | 3.03 |
| Feb 25, 2015 | 1.73 | 3.31 |
| Feb 26, 2014 | 1.59 | 2.85 |
| Feb 27, 2013 | 0.70 | 2.88 |
| Feb 29, 2012 | 1.01 | 2.84 |
| Feb 28, 2011 | 4.94 | 3.04 |
| Feb 22, 2010 | 4.66 | 3.11 |
| Feb 25, 2009 | 7.05 | 2.38 |
| Feb 21, 2008 | 33.02 | 5.73 |
| Mar 16, 2007 | 27.62 | 5.21 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 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: 2009-12-26), 10-K (reporting date: 2008-12-27), 10-K (reporting date: 2007-12-29), 10-K (reporting date: 2006-12-30).