Price to Sales (P/S)
since 2010
Calculation
NXP Semiconductors N.V., 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 | 4.54 | = | 191.42 | ÷ | 42.14 | 42.14 | = | 11,063 | ÷ | 262,538,156 | |
| Feb 25, 2021 | 5.74 | = | 178.52 | ÷ | 31.09 | 31.09 | = | 8,612 | ÷ | 277,008,199 | |
| Feb 27, 2020 | 3.61 | = | 114.64 | ÷ | 31.73 | 31.73 | = | 8,877 | ÷ | 279,750,659 | |
| Mar 1, 2019 | 2.93 | = | 94.25 | ÷ | 32.13 | 32.13 | = | 9,407 | ÷ | 292,789,698 | |
| Apr 11, 2018 | 4.29 | = | 115.88 | ÷ | 26.99 | 26.99 | = | 9,256 | ÷ | 342,924,392 | |
| Mar 3, 2017 | 3.67 | = | 103.86 | ÷ | 28.32 | 28.32 | = | 9,498 | ÷ | 335,392,882 | |
| Feb 26, 2016 | 4.05 | = | 72.23 | ÷ | 17.84 | 17.84 | = | 6,101 | ÷ | 342,003,880 | |
| Mar 6, 2015 | 4.06 | = | 98.48 | ÷ | 24.28 | 24.28 | = | 5,647 | ÷ | 232,580,046 | |
| Feb 28, 2014 | 2.89 | = | 56.23 | ÷ | 19.45 | 19.45 | = | 4,815 | ÷ | 247,580,667 | |
| Mar 1, 2013 | 1.84 | = | 32.19 | ÷ | 17.50 | 17.50 | = | 4,358 | ÷ | 249,025,500 | |
| Mar 13, 2012 | 1.47 | = | 24.87 | ÷ | 16.92 | 16.92 | = | 4,194 | ÷ | 247,836,356 | |
| Mar 9, 2011 | 1.58 | = | 27.78 | ÷ | 17.56 | 17.56 | = | 4,402 | ÷ | 250,751,500 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of NXP Semiconductors N.V. Annual Report.
The valuation of NXP Semiconductors N.V. between 2011 and 2022 is characterized by a significant expansion in the Price-to-Sales (P/S) ratio, reflecting a transition from a low-multiple valuation to a higher market premium. While both share price and sales per share exhibited long-term growth, the share price grew at a rate that frequently outpaced revenue growth, driving the expansion of the P/S multiple.
- Price-to-Sales Ratio Trends
- The P/S ratio remained relatively stable and low between 2011 and 2013, fluctuating between 1.47 and 1.84. A sharp upward shift occurred in 2014, with the ratio climbing to 2.89, and continuing to rise to a plateau around 4.0 in 2015 and 2016. After a period of volatility and a notable dip to 2.93 in 2019, the ratio reached its historical peak of 5.74 in 2021 before moderating to 4.54 by 2022.
- Share Price Dynamics
- The share price demonstrated a consistent long-term bullish trend, increasing from 27.78 USD in 2011 to 191.42 USD in 2022. The most aggressive growth phases occurred between 2014 and 2015 and again between 2020 and 2022, where the price increases significantly exceeded the corresponding growth in sales per share.
- Sales per Share Performance
- Revenue efficiency, as measured by sales per share, grew from 17.56 USD in 2011 to 42.14 USD in 2022. A temporary contraction was observed in 2016, where sales per share dropped to 17.84 USD; however, this was followed by a strong recovery and steady growth through 2022, indicating a fundamental increase in the company's ability to generate revenue per equity unit.
- Valuation Analysis
- The divergence between the growth in sales per share and the growth in share price suggests a market re-rating of the company. The increase in the P/S ratio from approximately 1.5x in the early 2010s to over 4.5x by 2022 indicates that investors became willing to pay a significantly higher premium for each dollar of revenue, likely reflecting improved margin expectations or a shift in the company's perceived risk profile and growth potential.
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Comparison to Competitors
NXP Semiconductors N.V., P/S, long-term trends, comparison to competitors
| NXP Semiconductors N.V. | 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 24, 2022 | 4.54 | 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 25, 2021 | 5.74 | 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 27, 2020 | 3.61 | 8.59 | 7.06 | 3.75 | 5.62 | 4.07 | 4.74 | 3.10 | 4.47 | 2.15 | 8.05 | 3.98 | 8.54 |
| Mar 1, 2019 | 2.93 | 3.58 | 5.35 | 1.87 | 4.78 | 3.09 | 4.58 | 2.51 | 4.33 | 1.58 | 15.07 | 3.37 | 6.38 |
| Apr 11, 2018 | 4.29 | 2.28 | 6.40 | 3.82 | 6.07 | 3.39 | 4.00 | 3.25 | 3.40 | 2.30 | 8.76 | 3.54 | 6.83 |
| Mar 3, 2017 | 3.67 | 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 26, 2016 | 4.05 | 0.38 | 5.49 | 2.26 | 5.69 | 2.44 | 2.93 | 2.17 | 2.08 | 1.12 | 2.68 | 3.58 | 4.06 |
| Mar 6, 2015 | 4.06 | 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 28, 2014 | 2.89 | 0.51 | 5.90 | 2.66 | 5.11 | 2.34 | 3.40 | 2.10 | 1.68 | 1.94 | 1.84 | 4.74 | 3.95 |
| Mar 1, 2013 | 1.84 | 0.34 | 4.48 | 1.48 | 3.33 | 1.96 | 2.73 | 2.39 | 2.70 | 0.67 | 2.28 | 5.18 | 2.94 |
| Mar 13, 2012 | 1.47 | 0.79 | 3.32 | 1.38 | 3.01 | 2.47 | 1.90 | 1.38 | 2.83 | 0.62 | 2.94 | 5.86 | 2.78 |
| Mar 9, 2011 | 1.58 | 0.97 | 3.89 | 1.86 | 3.05 | 2.79 | 2.98 | 2.18 | 4.65 | 0.91 | 3.00 | 6.72 | 2.99 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
NXP Semiconductors N.V., P/S, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| NXP Semiconductors N.V. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Feb 24, 2022 | 4.54 | 6.36 |
| Feb 25, 2021 | 5.74 | 5.78 |
| Feb 27, 2020 | 3.61 | 4.71 |
| Mar 1, 2019 | 2.93 | 3.84 |
| Apr 11, 2018 | 4.29 | 4.12 |
| Mar 3, 2017 | 3.67 | 3.57 |
| Feb 26, 2016 | 4.05 | 2.78 |
| Mar 6, 2015 | 4.06 | 3.39 |
| Feb 28, 2014 | 2.89 | 2.97 |
| Mar 1, 2013 | 1.84 | 2.50 |
| Mar 13, 2012 | 1.47 | 2.61 |
| Mar 9, 2011 | 1.58 | 2.95 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
Comparison to Industry (Information Technology)
NXP Semiconductors N.V., P/S, long-term trends, comparison to industry (information technology)
| NXP Semiconductors N.V. | Information Technology | |
|---|---|---|
| Feb 24, 2022 | 4.54 | 6.98 |
| Feb 25, 2021 | 5.74 | 6.11 |
| Feb 27, 2020 | 3.61 | 4.62 |
| Mar 1, 2019 | 2.93 | 4.31 |
| Apr 11, 2018 | 4.29 | 4.18 |
| Mar 3, 2017 | 3.67 | 3.46 |
| Feb 26, 2016 | 4.05 | 3.03 |
| Mar 6, 2015 | 4.06 | 3.31 |
| Feb 28, 2014 | 2.89 | 2.85 |
| Mar 1, 2013 | 1.84 | 2.88 |
| Mar 13, 2012 | 1.47 | 2.84 |
| Mar 9, 2011 | 1.58 | 3.04 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31), 20-F (reporting date: 2016-12-31), 20-F (reporting date: 2015-12-31), 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).