Price to Sales (P/S)
since 2005
Calculation
Fiserv Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenue1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 3.84 | = | 95.56 | ÷ | 24.88 | 24.88 | = | 16,226 | ÷ | 652,196,905 | |
| Feb 26, 2021 | 5.20 | = | 115.37 | ÷ | 22.19 | 22.19 | = | 14,852 | ÷ | 669,459,877 | |
| Feb 27, 2020 | 7.24 | = | 108.54 | ÷ | 15.00 | 15.00 | = | 10,187 | ÷ | 679,098,783 | |
| Feb 21, 2019 | 5.70 | = | 84.75 | ÷ | 14.87 | 14.87 | = | 5,823 | ÷ | 391,586,971 | |
| Feb 22, 2018 | 5.16 | = | 71.06 | ÷ | 13.78 | 13.78 | = | 5,696 | ÷ | 413,215,728 | |
| Feb 23, 2017 | 4.48 | = | 57.45 | ÷ | 12.83 | 12.83 | = | 5,505 | ÷ | 429,127,900 | |
| Feb 19, 2016 | 4.10 | = | 48.33 | ÷ | 11.78 | 11.78 | = | 5,254 | ÷ | 445,874,602 | |
| Feb 20, 2015 | 3.73 | = | 39.53 | ÷ | 10.61 | 10.61 | = | 5,066 | ÷ | 477,385,630 | |
| Feb 20, 2014 | 3.02 | = | 28.59 | ÷ | 9.46 | 9.46 | = | 4,814 | ÷ | 508,973,046 | |
| Feb 22, 2013 | 2.39 | = | 20.06 | ÷ | 8.39 | 8.39 | = | 4,482 | ÷ | 534,014,116 | |
| Feb 24, 2012 | 2.14 | = | 16.72 | ÷ | 7.82 | 7.82 | = | 4,337 | ÷ | 554,354,588 | |
| Feb 24, 2011 | 2.19 | = | 15.51 | ÷ | 7.07 | 7.07 | = | 4,133 | ÷ | 584,308,404 | |
| Feb 26, 2010 | 1.80 | = | 12.06 | ÷ | 6.69 | 6.69 | = | 4,077 | ÷ | 609,281,616 | |
| Feb 27, 2009 | 1.07 | = | 8.16 | ÷ | 7.59 | 7.59 | = | 4,739 | ÷ | 624,001,668 | |
| Feb 28, 2008 | 2.22 | = | 13.22 | ÷ | 5.96 | 5.96 | = | 3,922 | ÷ | 657,664,524 | |
| Feb 28, 2007 | 1.99 | = | 13.24 | ÷ | 6.66 | 6.66 | = | 4,544 | ÷ | 682,355,912 | |
| Mar 15, 2006 | 1.87 | = | 10.61 | ÷ | 5.67 | 5.67 | = | 4,059 | ÷ | 715,717,600 |
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 Fiserv Inc. Annual Report.
The analysis of the Price-to-Sales (P/S) ratio reveals three distinct phases: a period of early volatility, a prolonged decade of valuation expansion, and a recent sharp contraction in the multiple.
- Early Stability and Volatility (2006–2009)
- The P/S ratio initially fluctuated between 1.87 and 2.22 from 2006 through 2008. A significant contraction occurred in 2009, where the ratio dropped to 1.07, marking the lowest valuation multiple in the observed period. This decline coincided with a sharp decrease in share price despite an increase in sales per share.
- Prolonged Valuation Expansion (2010–2020)
- Starting in 2010, a consistent upward trend in the P/S ratio is observed, rising from 1.80 to a peak of 7.24 by February 2020. This ten-year trajectory indicates a substantial increase in the premium the market was willing to pay for each dollar of revenue, reflecting strong investor confidence and growth expectations that outpaced the actual growth in sales per share.
- Recent Multiple Compression (2021–2022)
- A notable divergence is evident between 2020 and 2022. While sales per share experienced accelerated growth, increasing from 15.00 in 2020 to 24.88 in 2022, the P/S ratio declined sharply from 7.24 to 3.84. This indicates a significant compression of the valuation multiple, as the share price failed to maintain its growth rate relative to the increase in revenue.
Overall, while the company achieved significant organic growth in sales per share over the sixteen-year period, the market valuation as measured by the P/S ratio has shifted from a low-multiple environment to a peak of high valuation, ending with a recent trend toward normalization or devaluation.
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Comparison to Competitors
Fiserv Inc., P/S, long-term trends, comparison to competitors
| Fiserv Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 24, 2022 | 3.84 | 4.28 | 14.94 | 5.99 | 12.55 | 49.25 | 1.94 | 16.09 | 12.81 | 5.38 | 15.58 | 10.72 | 9.24 | 19.02 | 13.22 | 13.95 |
| Feb 26, 2021 | 5.20 | 3.26 | 17.04 | — | 13.85 | 49.57 | 1.47 | 11.78 | 10.85 | 4.33 | 39.86 | 6.66 | 8.88 | 25.66 | 10.08 | 10.65 |
| Feb 27, 2020 | 7.24 | 2.72 | 15.11 | — | 8.56 | 36.28 | 1.63 | 11.05 | 8.38 | 4.74 | — | 7.06 | 9.00 | 19.36 | 6.27 | 14.75 |
| Feb 21, 2019 | 5.70 | 2.35 | 13.23 | — | 7.53 | — | 1.56 | 9.52 | 7.51 | 4.41 | — | 9.75 | 8.89 | 16.63 | 4.10 | 13.73 |
| Feb 22, 2018 | 5.16 | 2.45 | 13.32 | — | 5.85 | — | 1.82 | 6.99 | 6.19 | 5.56 | — | 7.49 | 6.96 | 14.55 | 4.80 | 11.06 |
| Feb 23, 2017 | 4.48 | 2.13 | 9.34 | — | 4.53 | — | 2.12 | 6.17 | 5.13 | 4.45 | — | 9.69 | 7.09 | 10.50 | 3.71 | 12.08 |
| Feb 19, 2016 | 4.10 | 2.11 | 9.27 | — | 3.73 | — | 1.56 | 5.56 | 3.99 | 4.66 | — | 16.88 | 7.82 | 8.69 | 3.07 | 19.97 |
| Feb 20, 2015 | 3.73 | 1.61 | 8.59 | — | 3.42 | — | 1.76 | 5.32 | 4.10 | 4.67 | — | 13.17 | 9.54 | 16.81 | 3.15 | 35.87 |
| Feb 20, 2014 | 3.02 | 1.64 | 7.45 | — | 2.96 | — | 1.91 | 4.47 | 3.41 | 3.75 | — | 8.38 | 8.92 | 22.61 | 3.12 | 37.91 |
| Feb 22, 2013 | 2.39 | 1.54 | 4.30 | — | 3.02 | — | 2.12 | 4.27 | 3.32 | 3.66 | — | 17.50 | 8.91 | 19.84 | 2.76 | — |
| Feb 24, 2012 | 2.14 | 1.47 | 3.65 | — | 2.81 | — | 2.15 | 3.71 | 3.32 | 4.60 | — | — | 9.79 | — | 2.52 | — |
| Feb 24, 2011 | 2.19 | 1.36 | 4.50 | — | 2.76 | — | 1.98 | 4.12 | 3.57 | 4.04 | — | — | 7.35 | — | 2.93 | — |
| Feb 26, 2010 | 1.80 | 1.20 | 6.12 | — | 1.81 | — | 1.72 | 2.81 | 3.63 | 4.63 | — | — | 3.52 | — | 2.33 | — |
| Feb 27, 2009 | 1.07 | 0.92 | 2.88 | — | 1.01 | — | 1.12 | 3.21 | 3.89 | 4.79 | — | — | 9.52 | — | 1.93 | — |
| Feb 28, 2008 | 2.22 | 1.41 | 6.24 | — | 1.91 | — | 1.60 | 3.61 | 20.52 | 5.60 | — | — | 9.94 | — | 3.16 | — |
| Feb 28, 2007 | 1.99 | 1.44 | 8.78 | — | 3.95 | — | 1.55 | 4.87 | 17.98 | 5.51 | — | — | 13.93 | — | 3.54 | — |
| Mar 15, 2006 | 1.87 | 1.32 | 11.84 | — | 3.86 | — | 1.38 | 3.94 | 21.64 | 5.80 | — | — | 8.64 | — | 3.15 | — |
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 (Software & Services)
Fiserv Inc., P/S, long-term trends, comparison to sector (software & services)
| Fiserv Inc. | Software & Services | |
|---|---|---|
| Feb 24, 2022 | 3.84 | 9.45 |
| Feb 26, 2021 | 5.20 | 7.72 |
| Feb 27, 2020 | 7.24 | 6.11 |
| Feb 21, 2019 | 5.70 | 5.24 |
| Feb 22, 2018 | 5.16 | 4.65 |
| Feb 23, 2017 | 4.48 | 3.95 |
| Feb 19, 2016 | 4.10 | 3.41 |
| Feb 20, 2015 | 3.73 | 3.34 |
| Feb 20, 2014 | 3.02 | 2.89 |
| Feb 22, 2013 | 2.39 | 2.79 |
| Feb 24, 2012 | 2.14 | 2.85 |
| Feb 24, 2011 | 2.19 | 2.73 |
| Feb 26, 2010 | 1.80 | 2.61 |
| Feb 27, 2009 | 1.07 | 2.31 |
| Feb 28, 2008 | 2.22 | 6.95 |
| Feb 28, 2007 | 1.99 | 6.20 |
| Mar 15, 2006 | 1.87 | 6.73 |
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 (Information Technology)
Fiserv Inc., P/S, long-term trends, comparison to industry (information technology)
| Fiserv Inc. | Information Technology | |
|---|---|---|
| Feb 24, 2022 | 3.84 | 6.98 |
| Feb 26, 2021 | 5.20 | 6.11 |
| Feb 27, 2020 | 7.24 | 4.62 |
| Feb 21, 2019 | 5.70 | 4.31 |
| Feb 22, 2018 | 5.16 | 4.18 |
| Feb 23, 2017 | 4.48 | 3.46 |
| Feb 19, 2016 | 4.10 | 3.03 |
| Feb 20, 2015 | 3.73 | 3.31 |
| Feb 20, 2014 | 3.02 | 2.85 |
| Feb 22, 2013 | 2.39 | 2.88 |
| Feb 24, 2012 | 2.14 | 2.84 |
| Feb 24, 2011 | 2.19 | 3.04 |
| Feb 26, 2010 | 1.80 | 3.11 |
| Feb 27, 2009 | 1.07 | 2.38 |
| Feb 28, 2008 | 2.22 | 5.73 |
| Feb 28, 2007 | 1.99 | 5.21 |
| Mar 15, 2006 | 1.87 | 5.62 |
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).