Price to Sales (P/S)
since 2005
Calculation
Becton, Dickinson & Co., 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 24, 2021 | 3.43 | = | 244.46 | ÷ | 71.29 | 71.29 | = | 20,248 | ÷ | 284,023,582 | |
| Nov 25, 2020 | 3.85 | = | 227.47 | ÷ | 59.02 | 59.02 | = | 17,117 | ÷ | 290,031,363 | |
| Nov 27, 2019 | 4.07 | = | 260.40 | ÷ | 63.93 | 63.93 | = | 17,290 | ÷ | 270,459,892 | |
| Nov 21, 2018 | 4.06 | = | 242.04 | ÷ | 59.58 | 59.58 | = | 15,983 | ÷ | 268,257,940 | |
| Nov 22, 2017 | 4.23 | = | 224.23 | ÷ | 53.04 | 53.04 | = | 12,093 | ÷ | 227,978,328 | |
| Nov 23, 2016 | 2.87 | = | 168.48 | ÷ | 58.79 | 58.79 | = | 12,483 | ÷ | 212,319,588 | |
| Nov 25, 2015 | 3.08 | = | 150.12 | ÷ | 48.79 | 48.79 | = | 10,282 | ÷ | 210,736,542 | |
| Nov 26, 2014 | 3.21 | = | 141.26 | ÷ | 43.99 | 43.99 | = | 8,446 | ÷ | 191,977,449 | |
| Nov 27, 2013 | 2.63 | = | 108.94 | ÷ | 41.50 | 41.50 | = | 8,054 | ÷ | 194,094,466 | |
| Nov 21, 2012 | 1.96 | = | 76.82 | ÷ | 39.14 | 39.14 | = | 7,708 | ÷ | 196,957,804 | |
| Nov 23, 2011 | 1.94 | = | 70.77 | ÷ | 36.43 | 36.43 | = | 7,829 | ÷ | 214,890,631 | |
| Nov 24, 2010 | 2.44 | = | 78.12 | ÷ | 32.06 | 32.06 | = | 7,372 | ÷ | 229,961,230 | |
| Nov 25, 2009 | 2.50 | = | 75.53 | ÷ | 30.20 | 30.20 | = | 7,161 | ÷ | 237,118,874 | |
| Nov 26, 2008 | 2.16 | = | 63.59 | ÷ | 29.43 | 29.43 | = | 7,156 | ÷ | 243,115,261 | |
| Nov 23, 2007 | 3.20 | = | 83.52 | ÷ | 26.08 | 26.08 | = | 6,360 | ÷ | 243,899,512 | |
| Nov 30, 2006 | 3.03 | = | 71.72 | ÷ | 23.66 | 23.66 | = | 5,835 | ÷ | 246,637,424 | |
| Dec 9, 2005 | 2.71 | = | 58.13 | ÷ | 21.48 | 21.48 | = | 5,415 | ÷ | 252,043,008 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Becton, Dickinson & Co. Annual Report.
The Price-to-Sales (P/S) ratio exhibited significant volatility over the 16-year period from 2005 to 2021, characterized by an initial decline, a subsequent period of rapid expansion, and a recent moderate correction. While sales per share grew consistently throughout the period, the P/S ratio fluctuated according to the market valuation of those sales.
- Valuation Cycles and Trends
- A period of contraction is observed between 2008 and 2012, where the P/S ratio declined from 3.20 in 2007 to a low of 1.94 in 2011. This indicates a phase where the market valuation of revenue compressed despite steady growth in sales per share. Following this trough, a strong expansion phase occurred, with the ratio climbing from 1.96 in 2012 to a peak of 4.23 in 2017.
- Analysis of Sales and Price Correlation
- Sales per share demonstrated a consistent upward trajectory, increasing from 21.48 US$ in 2005 to 71.29 US$ in 2021. In contrast, the share price experienced more pronounced swings, specifically the decline in 2008 and the surge between 2013 and 2019. The divergence between these two metrics is most evident during the 2017-2019 window, where the P/S ratio remained above 4.00, suggesting a high premium attributed to each dollar of revenue generated.
- Recent Valuation Adjustments
- Following the 2017 peak, the P/S ratio entered a period of gradual normalization. After remaining stable at approximately 4.07 in 2018 and 2019, the ratio decreased to 3.85 in 2020 and further to 3.43 by November 2021. This downward trend in the ratio, occurring while sales per share reached their highest historical levels, suggests a moderate correction in market valuation multiples.
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Comparison to Competitors
Becton, Dickinson & Co., P/S, long-term trends, comparison to competitors
| Becton, Dickinson & Co. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Nov 24, 2021 | 3.43 | 4.78 | 0.81 | 17.89 | 5.57 | 1.58 |
| Nov 25, 2020 | 3.85 | 6.30 | 0.60 | 21.29 | 4.36 | 1.24 |
| Nov 27, 2019 | 4.07 | 4.83 | 0.74 | 15.01 | 4.36 | 1.18 |
| Nov 21, 2018 | 4.06 | 4.37 | 0.88 | 16.06 | 3.92 | 1.12 |
| Nov 22, 2017 | 4.23 | 3.84 | 0.67 | 14.97 | 4.06 | 1.10 |
| Nov 23, 2016 | 2.87 | 3.70 | 0.51 | 10.11 | 4.07 | 0.83 |
| Nov 25, 2015 | 3.08 | 2.78 | 0.42 | 8.46 | 5.36 | 0.68 |
| Nov 26, 2014 | 3.21 | 3.53 | 0.54 | 8.80 | 3.74 | 0.80 |
| Nov 27, 2013 | 2.63 | 2.74 | 0.35 | 6.76 | 3.13 | 0.57 |
| Nov 21, 2012 | 1.96 | 1.38 | 0.31 | 10.56 | 2.36 | 0.53 |
| Nov 23, 2011 | 1.94 | 2.27 | 0.37 | 11.00 | 2.60 | 0.55 |
| Nov 24, 2010 | 2.44 | 2.06 | 0.44 | 9.15 | 2.48 | 0.50 |
| Nov 25, 2009 | 2.50 | 2.74 | 0.43 | 12.01 | 2.54 | 0.44 |
| Nov 26, 2008 | 2.16 | 2.83 | 0.33 | 5.14 | 4.30 | 0.43 |
| Nov 23, 2007 | 3.20 | 3.31 | 0.67 | 19.21 | 4.74 | 0.81 |
| Nov 30, 2006 | 3.03 | 3.68 | 0.89 | 11.23 | 4.81 | 1.03 |
| Dec 9, 2005 | 2.71 | 3.02 | 1.14 | 15.19 | 6.30 | 1.78 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Health Care Equipment & Services)
Becton, Dickinson & Co., P/S, long-term trends, comparison to sector (health care equipment & services)
| Becton, Dickinson & Co. | Health Care Equipment & Services | |
|---|---|---|
| Nov 24, 2021 | 3.43 | 2.07 |
| Nov 25, 2020 | 3.85 | 1.86 |
| Nov 27, 2019 | 4.07 | 1.74 |
| Nov 21, 2018 | 4.06 | 1.69 |
| Nov 22, 2017 | 4.23 | 1.58 |
| Nov 23, 2016 | 2.87 | 1.30 |
| Nov 25, 2015 | 3.08 | 1.17 |
| Nov 26, 2014 | 3.21 | 1.23 |
| Nov 27, 2013 | 2.63 | 0.95 |
| Nov 21, 2012 | 1.96 | 0.85 |
| Nov 23, 2011 | 1.94 | 1.04 |
| Nov 24, 2010 | 2.44 | 0.96 |
| Nov 25, 2009 | 2.50 | 1.02 |
| Nov 26, 2008 | 2.16 | 1.08 |
| Nov 23, 2007 | 3.20 | 1.48 |
| Nov 30, 2006 | 3.03 | 1.64 |
| Dec 9, 2005 | 2.71 | 2.17 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Health Care)
Becton, Dickinson & Co., P/S, long-term trends, comparison to industry (health care)
| Becton, Dickinson & Co. | Health Care | |
|---|---|---|
| Nov 24, 2021 | 3.43 | 3.28 |
| Nov 25, 2020 | 3.85 | 3.31 |
| Nov 27, 2019 | 4.07 | 3.21 |
| Nov 21, 2018 | 4.06 | 3.07 |
| Nov 22, 2017 | 4.23 | 3.06 |
| Nov 23, 2016 | 2.87 | 2.80 |
| Nov 25, 2015 | 3.08 | 2.72 |
| Nov 26, 2014 | 3.21 | 3.08 |
| Nov 27, 2013 | 2.63 | 2.81 |
| Nov 21, 2012 | 1.96 | 2.20 |
| Nov 23, 2011 | 1.94 | 1.90 |
| Nov 24, 2010 | 2.44 | 1.80 |
| Nov 25, 2009 | 2.50 | 2.08 |
| Nov 26, 2008 | 2.16 | 1.70 |
| Nov 23, 2007 | 3.20 | 2.42 |
| Nov 30, 2006 | 3.03 | 2.85 |
| Dec 9, 2005 | 2.71 | 3.17 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).