Price to Sales (P/S)
since 2005
Calculation
Allergan PLC, P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net revenues1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 18, 2020 | 4.05 | = | 198.00 | ÷ | 48.90 | 48.90 | = | 16,088,900 | ÷ | 329,002,015 | |
| Feb 15, 2019 | 2.93 | = | 139.07 | ÷ | 47.46 | 47.46 | = | 15,787,400 | ÷ | 332,614,474 | |
| Feb 16, 2018 | 3.40 | = | 164.04 | ÷ | 48.26 | 48.26 | = | 15,940,700 | ÷ | 330,320,420 | |
| Feb 24, 2017 | 5.65 | = | 245.37 | ÷ | 43.47 | 43.47 | = | 14,570,600 | ÷ | 335,224,713 | |
| Feb 26, 2016 | 7.81 | = | 298.07 | ÷ | 38.18 | 38.18 | = | 15,071,000 | ÷ | 394,687,384 | |
| Feb 18, 2015 | 5.79 | = | 284.00 | ÷ | 49.06 | 49.06 | = | 13,062,300 | ÷ | 266,252,295 | |
| Feb 25, 2014 | 4.52 | = | 225.00 | ÷ | 49.81 | 49.81 | = | 8,677,600 | ÷ | 174,199,744 | |
| Feb 28, 2013 | 1.84 | = | 85.16 | ÷ | 46.27 | 46.27 | = | 5,914,900 | ÷ | 127,832,241 | |
| Feb 16, 2012 | 1.67 | = | 60.31 | ÷ | 36.05 | 36.05 | = | 4,584,400 | ÷ | 127,165,346 | |
| Feb 22, 2011 | 1.94 | = | 54.90 | ÷ | 28.35 | 28.35 | = | 3,566,900 | ÷ | 125,827,379 | |
| Mar 1, 2010 | 1.77 | = | 40.12 | ÷ | 22.61 | 22.61 | = | 2,793,000 | ÷ | 123,516,219 | |
| Feb 23, 2009 | 1.20 | = | 29.10 | ÷ | 24.23 | 24.23 | = | 2,535,501 | ÷ | 104,627,327 | |
| Feb 25, 2008 | 1.17 | = | 28.19 | ÷ | 24.09 | 24.09 | = | 2,496,651 | ÷ | 103,657,619 | |
| Mar 1, 2007 | 1.33 | = | 25.71 | ÷ | 19.31 | 19.31 | = | 1,979,244 | ÷ | 102,500,489 | |
| Mar 10, 2006 | 1.99 | = | 29.55 | ÷ | 14.83 | 14.83 | = | 1,646,203 | ÷ | 111,029,721 |
Based on: 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 Allergan PLC Annual Report.
The analysis of valuation metrics from 2006 to 2020 reveals a significant evolution in market perception, characterized by a period of stability, a sharp valuation spike, and a subsequent correction and partial recovery.
- Initial Valuation Stability (2006–2013)
- During this period, the Price to Sales (P/S) ratio remained relatively low and stable, fluctuating between a minimum of 1.17 in 2008 and a maximum of 1.99 in 2006. While sales per share grew consistently from 14.83 US$ to 46.27 US$, the share price tracked this growth proportionally, preventing significant expansion in the P/S multiple.
- Rapid Valuation Expansion (2014–2016)
- A dramatic shift in market valuation occurred between 2014 and 2016. The P/S ratio surged from 4.52 to a peak of 7.81. This expansion was driven primarily by a steep increase in the share price, which rose from 225.00 US$ to 298.07 US$. Notably, this valuation spike occurred despite a decline in sales per share from 49.81 US$ in 2014 to 38.18 US$ in 2016, indicating that the market was pricing in growth expectations or premiums independent of immediate revenue performance.
- Correction and Recent Trends (2017–2020)
- Following the 2016 peak, a correction phase is observed. The P/S ratio declined steadily to 2.93 by 2019, coinciding with a share price reduction to 139.07 US$, while sales per share stabilized around the 47.00 US$ to 49.00 US$ range. By 2020, a rebound in the share price to 198.00 US$ resulted in a corresponding increase of the P/S ratio to 4.05, suggesting a moderate recovery in market confidence.
Overall, the data indicates that while revenue generation per share grew substantially over the long term, the company's valuation multiple experienced extreme volatility between 2014 and 2020, decoupled from the linear growth of its sales.
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Comparison to Competitors
Allergan PLC, P/S, long-term trends, comparison to competitors
| Allergan PLC | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 18, 2020 | 4.05 | 4.22 | 6.03 | 5.52 | 6.29 | 6.03 | 4.00 | 4.79 | 4.33 | 3.66 | 5.34 | 4.83 | 14.95 |
| Feb 15, 2019 | 2.93 | 3.58 | 5.22 | 3.67 | 3.97 | 5.15 | 3.84 | 4.45 | 4.92 | 4.49 | 6.62 | 4.24 | 15.54 |
| Feb 16, 2018 | 3.40 | 6.67 | 5.82 | 5.02 | 3.70 | 3.71 | 4.10 | 4.56 | 3.68 | 4.05 | 5.92 | 4.01 | 16.42 |
| Feb 24, 2017 | 5.65 | 3.84 | 5.65 | 4.72 | 3.48 | 4.18 | 3.08 | 4.62 | 4.54 | 3.84 | 7.86 | 3.37 | 12.51 |
| Feb 26, 2016 | 7.81 | 3.83 | 5.28 | 6.07 | 2.91 | 4.02 | 3.80 | 4.13 | 3.56 | 3.76 | 9.38 | 3.05 | 20.38 |
| Feb 18, 2015 | 5.79 | 4.90 | 6.13 | 6.28 | 3.09 | 4.03 | 6.36 | 3.77 | 3.93 | 4.24 | 14.62 | 3.06 | 47.41 |
| Feb 25, 2014 | 4.52 | 4.31 | 5.22 | 5.48 | 2.78 | 2.81 | 11.95 | 3.63 | 3.78 | 3.97 | 15.52 | 3.74 | 16.53 |
| Feb 28, 2013 | 1.84 | 3.30 | 4.09 | 3.40 | 2.32 | 2.71 | 6.95 | 3.17 | 2.73 | 3.34 | 11.66 | 2.12 | 6.60 |
| Feb 16, 2012 | 1.67 | — | 3.52 | 2.63 | 2.28 | 1.87 | 4.22 | 2.75 | 2.43 | 2.37 | 20.90 | 1.77 | 5.61 |
| Feb 22, 2011 | 1.94 | — | 3.32 | 2.23 | 2.48 | 1.73 | 4.19 | 2.65 | 2.18 | 2.27 | 7.38 | 2.00 | 56.82 |
| Mar 1, 2010 | 1.77 | — | 3.88 | 2.27 | 2.16 | 1.82 | 6.64 | 2.82 | 4.23 | 2.83 | 5.74 | 1.98 | 80.12 |
| Feb 23, 2009 | 1.20 | — | 3.44 | 1.96 | 1.30 | 1.66 | 8.03 | 2.37 | 2.14 | 1.72 | 5.17 | 1.44 | 28.70 |
| Feb 25, 2008 | 1.17 | — | 3.46 | 2.30 | 2.16 | 3.05 | 10.90 | 2.95 | 4.04 | 3.11 | 11.94 | 2.40 | 12.17 |
| Mar 1, 2007 | 1.33 | — | 5.41 | 3.07 | 2.30 | 3.80 | 12.67 | 3.53 | 4.23 | 3.67 | 19.70 | 5.05 | 17.58 |
| Mar 10, 2006 | 1.99 | — | 7.24 | 2.34 | 2.40 | 4.31 | 15.36 | 3.49 | 3.50 | 3.77 | 14.06 | 2.15 | 26.93 |
Based on: 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 (Pharmaceuticals, Biotechnology & Life Sciences)
Allergan PLC, P/S, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Allergan PLC | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Feb 18, 2020 | 4.05 | 4.88 |
| Feb 15, 2019 | 2.93 | 4.54 |
| Feb 16, 2018 | 3.40 | 4.60 |
| Feb 24, 2017 | 5.65 | 4.29 |
| Feb 26, 2016 | 7.81 | 4.10 |
| Feb 18, 2015 | 5.79 | 4.54 |
| Feb 25, 2014 | 4.52 | 4.30 |
| Feb 28, 2013 | 1.84 | 3.25 |
| Feb 16, 2012 | 1.67 | 2.58 |
| Feb 22, 2011 | 1.94 | 2.44 |
| Mar 1, 2010 | 1.77 | 3.00 |
| Feb 23, 2009 | 1.20 | 2.22 |
| Feb 25, 2008 | 1.17 | 3.19 |
| Mar 1, 2007 | 1.33 | 3.88 |
| Mar 10, 2006 | 1.99 | 3.84 |
Based on: 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 (Health Care)
Allergan PLC, P/S, long-term trends, comparison to industry (health care)
| Allergan PLC | Health Care | |
|---|---|---|
| Feb 18, 2020 | 4.05 | 3.21 |
| Feb 15, 2019 | 2.93 | 3.07 |
| Feb 16, 2018 | 3.40 | 3.06 |
| Feb 24, 2017 | 5.65 | 2.80 |
| Feb 26, 2016 | 7.81 | 2.72 |
| Feb 18, 2015 | 5.79 | 3.08 |
| Feb 25, 2014 | 4.52 | 2.81 |
| Feb 28, 2013 | 1.84 | 2.20 |
| Feb 16, 2012 | 1.67 | 1.90 |
| Feb 22, 2011 | 1.94 | 1.80 |
| Mar 1, 2010 | 1.77 | 2.08 |
| Feb 23, 2009 | 1.20 | 1.70 |
| Feb 25, 2008 | 1.17 | 2.42 |
| Mar 1, 2007 | 1.33 | 2.85 |
| Mar 10, 2006 | 1.99 | 3.17 |
Based on: 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).