Price to Sales (P/S)
since 2005
Calculation
3M Co., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 9, 2022 | 2.64 | = | 163.64 | ÷ | 61.91 | 61.91 | = | 35,355 | ÷ | 571,100,000 | |
| Feb 4, 2021 | 3.19 | = | 177.10 | ÷ | 55.58 | 55.58 | = | 32,184 | ÷ | 579,100,000 | |
| Feb 6, 2020 | 2.92 | = | 162.89 | ÷ | 55.83 | 55.83 | = | 32,136 | ÷ | 575,600,000 | |
| Feb 7, 2019 | 3.51 | = | 199.84 | ÷ | 56.90 | 56.90 | = | 32,765 | ÷ | 575,800,000 | |
| Feb 8, 2018 | 4.19 | = | 222.89 | ÷ | 53.16 | 53.16 | = | 31,657 | ÷ | 595,500,000 | |
| Feb 9, 2017 | 3.53 | = | 178.18 | ÷ | 50.50 | 50.50 | = | 30,109 | ÷ | 596,200,000 | |
| Feb 11, 2016 | 3.01 | = | 150.67 | ÷ | 50.04 | 50.04 | = | 30,274 | ÷ | 605,038,186 | |
| Feb 12, 2015 | 3.31 | = | 165.91 | ÷ | 50.13 | 50.13 | = | 31,821 | ÷ | 634,749,706 | |
| Feb 13, 2014 | 2.79 | = | 130.14 | ÷ | 46.58 | 46.58 | = | 30,871 | ÷ | 662,692,234 | |
| Feb 14, 2013 | 2.37 | = | 102.78 | ÷ | 43.34 | 43.34 | = | 29,904 | ÷ | 689,990,255 | |
| Feb 16, 2012 | 2.06 | = | 87.65 | ÷ | 42.63 | 42.63 | = | 29,611 | ÷ | 694,543,763 | |
| Feb 16, 2011 | 2.46 | = | 92.33 | ÷ | 37.46 | 37.46 | = | 26,662 | ÷ | 711,805,978 | |
| Feb 16, 2010 | 2.48 | = | 80.47 | ÷ | 32.49 | 32.49 | = | 23,123 | ÷ | 711,733,377 | |
| Feb 17, 2009 | 1.30 | = | 47.42 | ÷ | 36.42 | 36.42 | = | 25,269 | ÷ | 693,791,556 | |
| Feb 15, 2008 | 2.31 | = | 79.95 | ÷ | 34.57 | 34.57 | = | 24,462 | ÷ | 707,662,632 | |
| Feb 26, 2007 | 2.44 | = | 76.12 | ÷ | 31.24 | 31.24 | = | 22,923 | ÷ | 733,885,504 | |
| Feb 21, 2006 | 2.61 | = | 73.20 | ÷ | 28.04 | 28.04 | = | 21,167 | ÷ | 754,988,840 |
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 3M Co. Annual Report.
The Price-to-Sales (P/S) ratio exhibits significant volatility over the observed period from 2006 to 2022, reflecting fluctuating market sentiment and valuation premiums relative to revenue generation. While sales per share maintained a consistent long-term upward trajectory, the P/S ratio experienced distinct phases of contraction and expansion.
- Valuation Cycle and Peak Analysis
- The P/S ratio remained relatively stable between 2.06 and 2.61 from 2006 to 2012, with a notable exception in 2009 when the ratio dropped to a period low of 1.30. Following this trough, a sustained expansion in valuation occurred, with the P/S ratio climbing steadily from 2.37 in 2013 to a peak of 4.19 in 2018. This peak represents the highest valuation multiple relative to sales in the documented history, coinciding with the highest recorded share price of 222.89 US$.
- Revenue Growth Trends
- Sales per share demonstrated a robust and nearly linear increase over the 16-year span, rising from 28.04 US$ in 2006 to 61.91 US$ in 2022. This represents a growth of approximately 121% in revenue efficiency per share. The steady increase in sales per share suggests a consistent growth in top-line performance, which provided a fundamental floor for the valuation even during periods of share price volatility.
- Post-2018 Valuation Compression
- After reaching the 2018 peak, the P/S ratio entered a phase of compression. Between 2019 and 2022, the ratio declined from 4.19 to 2.64. This downward trend occurred despite the fact that sales per share continued to increase, reaching their highest point in 2022. This divergence indicates that the market began valuing each dollar of sales at a lower multiple, suggesting a shift in investor risk perception or a decrease in growth expectations.
In summary, the relationship between share price and sales per share shifted from a period of valuation expansion (2013-2018) to a period of contraction (2019-2022). By 2022, the P/S ratio of 2.64 returned to levels similar to those seen in the 2006-2011 era, despite the significantly higher revenue base per share.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
3M Co., P/S, long-term trends, comparison to competitors
| 3M Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 9, 2022 | 2.64 | 1.87 | 2.26 | 3.03 | 1.50 | 3.73 | 1.57 | 2.21 |
| Feb 4, 2021 | 3.19 | 1.96 | 2.83 | 2.96 | 1.41 | 4.34 | 1.40 | 1.95 |
| Feb 6, 2020 | 2.92 | 2.34 | 1.48 | 1.87 | 1.18 | 3.51 | 2.07 | 1.75 |
| Feb 7, 2019 | 3.51 | 2.26 | 1.47 | 1.58 | 0.82 | 2.59 | 1.58 | 1.56 |
| Feb 8, 2018 | 4.19 | 2.17 | 2.24 | 1.74 | 1.11 | 2.74 | 1.91 | 1.67 |
| Feb 9, 2017 | 3.53 | 1.06 | 1.62 | 1.65 | 2.39 | 2.36 | 1.59 | 1.55 |
| Feb 11, 2016 | 3.01 | 0.80 | 0.86 | 1.25 | 2.59 | 2.06 | 1.43 | 1.26 |
| Feb 12, 2015 | 3.31 | 1.15 | 0.99 | 1.49 | 2.45 | 2.03 | 1.34 | 1.67 |
| Feb 13, 2014 | 2.79 | 1.12 | 1.17 | 1.63 | 2.54 | 1.90 | 1.15 | 1.60 |
| Feb 14, 2013 | 2.37 | 0.70 | 0.99 | 1.79 | 2.39 | 1.46 | 0.60 | 1.43 |
| Feb 16, 2012 | 2.06 | 0.82 | 1.30 | 1.08 | 2.15 | 1.28 | 0.62 | 1.31 |
| Feb 16, 2011 | 2.46 | 0.83 | 1.63 | 1.33 | 2.20 | 1.36 | 0.61 | 1.44 |
| Feb 16, 2010 | 2.48 | 0.64 | 1.23 | 0.95 | 1.66 | 0.94 | 0.64 | 1.19 |
| Feb 17, 2009 | 1.30 | 0.51 | 0.33 | 0.39 | 1.02 | 0.66 | 0.64 | 0.77 |
| Feb 15, 2008 | 2.31 | 0.98 | 1.06 | 0.91 | 3.45 | 1.21 | 1.03 | 1.30 |
| Feb 26, 2007 | 2.44 | 1.17 | 1.12 | 0.96 | 3.54 | 1.22 | 1.08 | 1.44 |
| Feb 21, 2006 | 2.61 | 1.06 | 1.44 | 0.93 | 3.72 | 1.24 | 0.86 | 1.36 |
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 (Capital Goods)
3M Co., P/S, long-term trends, comparison to sector (capital goods)
| 3M Co. | Capital Goods | |
|---|---|---|
| Feb 9, 2022 | 2.64 | 2.09 |
| Feb 4, 2021 | 3.19 | 2.11 |
| Feb 6, 2020 | 2.92 | 1.92 |
| Feb 7, 2019 | 3.51 | 1.62 |
| Feb 8, 2018 | 4.19 | 1.82 |
| Feb 9, 2017 | 3.53 | 1.76 |
| Feb 11, 2016 | 3.01 | 1.55 |
| Feb 12, 2015 | 3.31 | 1.66 |
| Feb 13, 2014 | 2.79 | 1.66 |
| Feb 14, 2013 | 2.37 | 1.37 |
| Feb 16, 2012 | 2.06 | 1.33 |
| Feb 16, 2011 | 2.46 | 1.45 |
| Feb 16, 2010 | 2.48 | 1.12 |
| Feb 17, 2009 | 1.30 | 0.71 |
| Feb 15, 2008 | 2.31 | 1.76 |
| Feb 26, 2007 | 2.44 | 1.91 |
| Feb 21, 2006 | 2.61 | 1.95 |
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 (Industrials)
3M Co., P/S, long-term trends, comparison to industry (industrials)
| 3M Co. | Industrials | |
|---|---|---|
| Feb 9, 2022 | 2.64 | 2.07 |
| Feb 4, 2021 | 3.19 | 2.14 |
| Feb 6, 2020 | 2.92 | 1.77 |
| Feb 7, 2019 | 3.51 | 1.58 |
| Feb 8, 2018 | 4.19 | 1.71 |
| Feb 9, 2017 | 3.53 | 1.68 |
| Feb 11, 2016 | 3.01 | 1.48 |
| Feb 12, 2015 | 3.31 | 1.65 |
| Feb 13, 2014 | 2.79 | 1.57 |
| Feb 14, 2013 | 2.37 | 1.31 |
| Feb 16, 2012 | 2.06 | 1.27 |
| Feb 16, 2011 | 2.46 | 1.39 |
| Feb 16, 2010 | 2.48 | 1.09 |
| Feb 17, 2009 | 1.30 | 0.71 |
| Feb 15, 2008 | 2.31 | 1.62 |
| Feb 26, 2007 | 2.44 | 1.73 |
| Feb 21, 2006 | 2.61 | 1.80 |
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).