Price to Sales (P/S)
since 2005
Calculation
Paramount Global, P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2023 | 0.51 | = | 23.50 | ÷ | 46.35 | 46.35 | = | 30,154 | ÷ | 650,516,853 | |
| Feb 15, 2022 | 0.82 | = | 35.99 | ÷ | 44.07 | 44.07 | = | 28,586 | ÷ | 648,584,674 | |
| Feb 24, 2021 | 1.61 | = | 65.60 | ÷ | 40.81 | 40.81 | = | 25,285 | ÷ | 619,606,133 | |
| Feb 20, 2020 | 0.65 | = | 29.29 | ÷ | 45.32 | 45.32 | = | 27,812 | ÷ | 613,739,990 | |
| Feb 15, 2019 | 1.30 | = | 50.64 | ÷ | 38.91 | 38.91 | = | 14,514 | ÷ | 372,969,983 | |
| Feb 20, 2018 | 1.57 | = | 56.25 | ÷ | 35.78 | 35.78 | = | 13,692 | ÷ | 382,719,931 | |
| Feb 17, 2017 | 2.04 | = | 65.69 | ÷ | 32.15 | 32.15 | = | 13,166 | ÷ | 409,535,133 | |
| Feb 16, 2016 | 1.49 | = | 44.92 | ÷ | 30.22 | 30.22 | = | 13,886 | ÷ | 459,540,920 | |
| Feb 13, 2015 | 2.15 | = | 59.83 | ÷ | 27.76 | 27.76 | = | 13,806 | ÷ | 497,272,250 | |
| Feb 14, 2014 | 2.52 | = | 64.96 | ÷ | 25.76 | 25.76 | = | 15,284 | ÷ | 593,378,347 | |
| Feb 15, 2013 | 1.99 | = | 44.64 | ÷ | 22.39 | 22.39 | = | 14,089 | ÷ | 629,160,629 | |
| Feb 23, 2012 | 1.34 | = | 29.44 | ÷ | 21.95 | 21.95 | = | 14,245 | ÷ | 649,083,865 | |
| Feb 25, 2011 | 1.13 | = | 23.54 | ÷ | 20.91 | 20.91 | = | 14,060 | ÷ | 672,399,794 | |
| Feb 25, 2010 | 0.68 | = | 13.14 | ÷ | 19.22 | 19.22 | = | 13,015 | ÷ | 677,041,907 | |
| Feb 25, 2009 | 0.24 | = | 4.98 | ÷ | 20.54 | 20.54 | = | 13,950 | ÷ | 679,091,575 | |
| Feb 28, 2008 | 1.16 | = | 23.96 | ÷ | 20.67 | 20.67 | = | 14,073 | ÷ | 680,717,792 | |
| Mar 1, 2007 | 1.64 | = | 29.97 | ÷ | 18.24 | 18.24 | = | 14,320 | ÷ | 785,045,672 | |
| Mar 16, 2006 | 1.29 | = | 24.22 | ÷ | 18.82 | 18.82 | = | 14,536 | ÷ | 772,311,368 |
Based on: 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: 2009-12-31), 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 Paramount Global Annual Report.
An analysis of the Price-to-Sales (P/S) ratio reveals a significant divergence between the growth of operational revenue and market valuation over the period from 2006 to 2023.
- Revenue per Share Trajectory
- A consistent and long-term upward trend in sales per share is evident, rising from $18.82 in 2006 to a peak of $46.35 in 2023. This indicates a steady expansion in the company's ability to generate revenue on a per-share basis over the nearly two-decade period.
- Valuation Peaks and Market Premiums
- The P/S ratio exhibited substantial volatility, reaching its maximum value of 2.52 in 2014. This peak coincided with a significant increase in share price to $64.96, suggesting a high market premium attributed to the company's sales during that period. Other notable valuation peaks occurred in 2017 (2.04) and 2021 (1.61).
- Significant Valuation Contractions
- Two primary periods of valuation contraction are observable. The first occurred in 2009, with the P/S ratio dropping to 0.24 following a sharp decline in share price to $4.98. The second is a more recent trend culminating in 2023, where the ratio fell to 0.51. This recent decline is particularly significant as it occurred despite sales per share reaching their highest recorded level in the dataset.
- Correlation Between Sales and Market Price
- The data demonstrates that while sales growth remained positive and relatively linear, the P/S ratio was primarily driven by fluctuations in share price. The contraction of the ratio in the final years of the period suggests a decreasing market valuation of each dollar of revenue generated, indicating that investors are paying less for the same level of sales compared to the 2014-2017 period.
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Comparison to Competitors
Paramount Global, P/S, long-term trends, comparison to competitors
| Paramount Global | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 16, 2023 | 0.51 | 4.76 | 1.39 | 4.20 | 5.14 | 2.09 |
| Feb 15, 2022 | 0.82 | 7.60 | 1.95 | 5.49 | 5.78 | 4.08 |
| Feb 24, 2021 | 1.61 | 7.65 | 2.28 | 8.78 | 9.54 | 4.13 |
| Feb 20, 2020 | 0.65 | 6.14 | 1.84 | 8.45 | 7.47 | 3.81 |
| Feb 15, 2019 | 1.30 | 5.82 | 1.75 | 8.52 | 9.09 | 2.83 |
| Feb 20, 2018 | 1.57 | 6.78 | 2.34 | 13.80 | 10.56 | 2.81 |
| Feb 17, 2017 | 2.04 | 6.14 | 2.22 | 13.70 | 6.95 | 2.81 |
| Feb 16, 2016 | 1.49 | 6.27 | 1.95 | 17.32 | 5.96 | 3.74 |
| Feb 13, 2015 | 2.15 | 5.44 | 2.19 | 17.51 | 4.88 | 3.12 |
| Feb 14, 2014 | 2.52 | 6.67 | 2.23 | 20.27 | 5.53 | 2.70 |
| Feb 15, 2013 | 1.99 | 4.95 | 1.69 | 13.92 | 2.55 | 2.04 |
| Feb 23, 2012 | 1.34 | 4.87 | 1.44 | — | 2.14 | 1.47 |
| Feb 25, 2011 | 1.13 | 6.85 | 1.85 | — | 5.75 | 1.83 |
| Feb 25, 2010 | 0.68 | 7.17 | 1.28 | — | 2.09 | 1.59 |
| Feb 25, 2009 | 0.24 | 5.17 | 1.08 | — | 1.54 | 0.92 |
| Feb 28, 2008 | 1.16 | 10.00 | 1.96 | — | 1.60 | 1.69 |
| Mar 1, 2007 | 1.64 | 13.15 | 3.31 | — | 1.54 | 1.99 |
| Mar 16, 2006 | 1.29 | 16.41 | 2.55 | — | 2.05 | 1.55 |
Based on: 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: 2009-12-31), 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 (Media & Entertainment)
Paramount Global, P/S, long-term trends, comparison to sector (media & entertainment)
| Paramount Global | Media & Entertainment | |
|---|---|---|
| Feb 16, 2023 | 0.51 | 3.68 |
| Feb 15, 2022 | 0.82 | 5.56 |
| Feb 24, 2021 | 1.61 | 6.26 |
| Feb 20, 2020 | 0.65 | 5.12 |
| Feb 15, 2019 | 1.30 | 4.83 |
| Feb 20, 2018 | 1.57 | 5.91 |
| Feb 17, 2017 | 2.04 | 5.06 |
| Feb 16, 2016 | 1.49 | 5.13 |
| Feb 13, 2015 | 2.15 | 4.50 |
| Feb 14, 2014 | 2.52 | 4.67 |
| Feb 15, 2013 | 1.99 | 3.18 |
| Feb 23, 2012 | 1.34 | 2.41 |
| Feb 25, 2011 | 1.13 | 3.29 |
| Feb 25, 2010 | 0.68 | 2.84 |
| Feb 25, 2009 | 0.24 | 1.96 |
| Feb 28, 2008 | 1.16 | 3.43 |
| Mar 1, 2007 | 1.64 | 4.12 |
| Mar 16, 2006 | 1.29 | 3.41 |
Based on: 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: 2009-12-31), 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 (Communication Services)
Paramount Global, P/S, long-term trends, comparison to industry (communication services)
| Paramount Global | Communication Services | |
|---|---|---|
| Feb 16, 2023 | 0.51 | 2.91 |
| Feb 15, 2022 | 0.82 | 3.94 |
| Feb 24, 2021 | 1.61 | 4.19 |
| Feb 20, 2020 | 0.65 | 3.54 |
| Feb 15, 2019 | 1.30 | 3.20 |
| Feb 20, 2018 | 1.57 | 3.59 |
| Feb 17, 2017 | 2.04 | 3.11 |
| Feb 16, 2016 | 1.49 | 3.03 |
| Feb 13, 2015 | 2.15 | 2.68 |
| Feb 14, 2014 | 2.52 | 2.72 |
| Feb 15, 2013 | 1.99 | 2.08 |
| Feb 23, 2012 | 1.34 | 1.65 |
| Feb 25, 2011 | 1.13 | 1.84 |
| Feb 25, 2010 | 0.68 | 1.54 |
| Feb 25, 2009 | 0.24 | 1.29 |
| Feb 28, 2008 | 1.16 | 2.05 |
| Mar 1, 2007 | 1.64 | 2.85 |
| Mar 16, 2006 | 1.29 | 2.32 |
Based on: 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: 2009-12-31), 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).