Allergan PLC (NYSE:AGN)

The analysis of the financial data reveals several important trends in share price, sales per share, and the price-to-sales (P/S) ratio over the evaluated period from 2006 to 2020.

Share Price

The share price starts at $29.55 in 2006, exhibiting moderate fluctuations until 2012. From 2012 onwards, there is a notable acceleration, peaking dramatically at $298.07 in 2016. Subsequently, a decline follows, bottoming at $139.07 in 2019 before rebounding to $198 by 2020. The sharp increase between 2012 and 2016 suggests heightened investor confidence or market optimism, while the volatility after 2016 indicates possible external market factors or company-specific developments impacting valuation.

Sales Per Share

Sales per share show a general upward trend, growing from $14.83 in 2006 to a peak of $49.81 in 2014. Despite a minor reduction afterward, sales per share remain relatively stable around the mid-40s through to 2020. This pattern indicates consistent growth in sales revenue relative to the number of shares, reflecting operational expansion or increased revenue generation capabilities over time.

Price-to-Sales (P/S) Ratio

The P/S ratio initially declines from 1.99 in 2006 to a low near 1.17 in 2008, indicating that the share price did not keep pace with sales growth early in the period. Afterward, the ratio steadily increases from 2010 onwards, reaching a maximum of 7.81 in 2016. This rise suggests that the market began valuing the sales of the company at a higher premium during this time frame. From 2016 onwards, the ratio decreases to 2.93 in 2019 before climbing again to 4.05 in 2020, mirroring the share price trends and implying fluctuations in market sentiment and valuation multiples relative to sales.

Overall, the data indicate that the company's sales exhibited steady growth, but share price experienced higher volatility and sharper increases, especially from 2012 to 2016. The P/S ratio's increase during this period points to an expanding valuation multiple, perhaps driven by improved profitability expectations or market optimism. The subsequent correction in both share price and P/S ratio suggests a market adjustment, although sales remained relatively stable, reflecting underlying operational resilience.