Price to Sales (P/S)
since 2005
Calculation
Anadarko Petroleum Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Sales revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 17, 2017 | 4.42 | = | 66.77 | ÷ | 15.11 | 15.11 | = | 8,447 | ÷ | 558,979,551 | |
| Feb 17, 2016 | 2.17 | = | 40.50 | ÷ | 18.66 | 18.66 | = | 9,486 | ÷ | 508,438,647 | |
| Feb 20, 2015 | 2.64 | = | 85.45 | ÷ | 32.32 | 32.32 | = | 16,375 | ÷ | 506,650,285 | |
| Feb 28, 2014 | 2.85 | = | 84.16 | ÷ | 29.51 | 29.51 | = | 14,867 | ÷ | 503,767,298 | |
| Feb 19, 2013 | 3.16 | = | 84.13 | ÷ | 26.58 | 26.58 | = | 13,307 | ÷ | 500,565,966 | |
| Feb 21, 2012 | 3.08 | = | 85.74 | ÷ | 27.85 | 27.85 | = | 13,882 | ÷ | 498,427,854 | |
| Feb 23, 2011 | 3.65 | = | 79.67 | ÷ | 21.85 | 21.85 | = | 10,842 | ÷ | 496,258,104 | |
| Feb 23, 2010 | 4.15 | = | 69.18 | ÷ | 16.67 | 16.67 | = | 8,210 | ÷ | 492,562,381 | |
| Feb 25, 2009 | 1.12 | = | 35.54 | ÷ | 31.83 | 31.83 | = | 14,640 | ÷ | 459,881,004 | |
| Feb 29, 2008 | 2.68 | = | 63.74 | ÷ | 23.78 | 23.78 | = | 11,132 | ÷ | 468,065,186 | |
| Feb 28, 2007 | 1.85 | = | 40.29 | ÷ | 21.81 | 21.81 | = | 10,099 | ÷ | 463,098,338 | |
| Mar 3, 2006 | 3.31 | = | 51.04 | ÷ | 15.41 | 15.41 | = | 7,100 | ÷ | 460,882,446 |
Based on: 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 Anadarko Petroleum Corp. Annual Report.
The analysis of financial metrics from 2006 to 2017 reveals a volatile relationship between share price, sales per share, and the resulting Price to Sales (P/S) ratio, characterized by periods of significant valuation expansion and contraction.
- Price to Sales (P/S) Ratio Trends
- The P/S ratio exhibited substantial volatility over the twelve-year period, ranging from a low of 1.12 in 2009 to a peak of 4.42 in 2017. A sharp recovery is observed between 2009 and 2010, where the ratio increased from 1.12 to 4.15, indicating a rapid increase in market valuation relative to the company's revenue generation.
- Share Price and Revenue Correlation
- Between 2006 and 2015, share prices and sales per share generally followed an upward trajectory, though not in perfect synchronization. The share price reached a peak of 85.74 US$ in 2012, while sales per share climbed steadily from 15.41 US$ in 2006 to a maximum of 32.32 US$ in 2015. This period was marked by a relatively stable P/S ratio, generally fluctuating between 2.64 and 3.65 after the initial 2010 spike.
- Analysis of 2016-2017 Valuation Divergence
- A significant shift occurred in the final two years of the period. In 2016, both the share price (40.50 US$) and sales per share (18.66 US$) experienced sharp declines, resulting in a compressed P/S ratio of 2.17. However, by 2017, a divergence emerged: the share price recovered to 66.77 US$ while sales per share continued to fall to 15.11 US$. This resulted in the P/S ratio rising to its period high of 4.42, suggesting that the market assigned a higher valuation multiple to the company despite a contraction in top-line performance per share.
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Comparison to Competitors
Anadarko Petroleum Corp., P/S, long-term trends, comparison to competitors
| Anadarko Petroleum Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Feb 17, 2017 | 4.42 | 1.91 | 2.51 | 1.54 |
| Feb 17, 2016 | 2.17 | 1.24 | 1.38 | 1.30 |
| Feb 20, 2015 | 2.64 | 1.02 | 1.57 | 0.95 |
| Feb 28, 2014 | 2.85 | 0.98 | 1.50 | 0.98 |
| Feb 19, 2013 | 3.16 | 0.98 | 1.23 | 0.89 |
| Feb 21, 2012 | 3.08 | 0.88 | 0.39 | 0.88 |
| Feb 23, 2011 | 3.65 | 1.03 | 0.59 | 1.14 |
| Feb 23, 2010 | 4.15 | 0.87 | 0.48 | 1.02 |
| Feb 25, 2009 | 1.12 | 0.48 | 0.24 | 0.73 |
| Feb 29, 2008 | 2.68 | 0.86 | 0.67 | 1.23 |
| Feb 28, 2007 | 1.85 | 0.72 | 0.60 | 1.12 |
| Mar 3, 2006 | 3.31 | 0.66 | 0.48 | 1.01 |
Based on: 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 (Oil, Gas & Consumable Fuels)
Anadarko Petroleum Corp., P/S, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Anadarko Petroleum Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Feb 17, 2017 | 4.42 | 1.72 |
| Feb 17, 2016 | 2.17 | 1.29 |
| Feb 20, 2015 | 2.64 | 1.02 |
| Feb 28, 2014 | 2.85 | 1.02 |
| Feb 19, 2013 | 3.16 | 0.94 |
| Feb 21, 2012 | 3.08 | 0.75 |
| Feb 23, 2011 | 3.65 | 0.98 |
| Feb 23, 2010 | 4.15 | 0.85 |
| Feb 25, 2009 | 1.12 | 0.54 |
| Feb 29, 2008 | 2.68 | 1.00 |
| Feb 28, 2007 | 1.85 | 0.88 |
| Mar 3, 2006 | 3.31 | 0.79 |
Based on: 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 (Energy)
Anadarko Petroleum Corp., P/S, long-term trends, comparison to industry (energy)
| Anadarko Petroleum Corp. | Energy | |
|---|---|---|
| Feb 17, 2017 | 4.42 | 1.90 |
| Feb 17, 2016 | 2.17 | 1.37 |
| Feb 20, 2015 | 2.64 | 1.10 |
| Feb 28, 2014 | 2.85 | 1.11 |
| Feb 19, 2013 | 3.16 | 1.02 |
| Feb 21, 2012 | 3.08 | 0.83 |
| Feb 23, 2011 | 3.65 | 1.10 |
| Feb 23, 2010 | 4.15 | 0.93 |
| Feb 25, 2009 | 1.12 | 0.57 |
| Feb 29, 2008 | 2.68 | 1.09 |
| Feb 28, 2007 | 1.85 | 0.96 |
| Mar 3, 2006 | 3.31 | 0.86 |
Based on: 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).