Price to Sales (P/S)
since 2005
Calculation
Boston Scientific Corp., 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 23, 2023 | 5.34 | = | 47.18 | ÷ | 8.84 | 8.84 | = | 12,682 | ÷ | 1,434,780,104 | |
| Feb 23, 2022 | 5.25 | = | 43.71 | ÷ | 8.33 | 8.33 | = | 11,888 | ÷ | 1,426,724,712 | |
| Feb 23, 2021 | 5.54 | = | 38.75 | ÷ | 6.99 | 6.99 | = | 9,913 | ÷ | 1,417,165,707 | |
| Feb 25, 2020 | 5.19 | = | 39.91 | ÷ | 7.69 | 7.69 | = | 10,735 | ÷ | 1,396,195,349 | |
| Feb 19, 2019 | 5.62 | = | 39.86 | ÷ | 7.09 | 7.09 | = | 9,823 | ÷ | 1,385,961,926 | |
| Feb 20, 2018 | 4.08 | = | 26.83 | ÷ | 6.58 | 6.58 | = | 9,048 | ÷ | 1,374,910,797 | |
| Feb 23, 2017 | 3.98 | = | 24.48 | ÷ | 6.15 | 6.15 | = | 8,386 | ÷ | 1,363,488,640 | |
| Feb 24, 2016 | 3.13 | = | 17.33 | ÷ | 5.55 | 5.55 | = | 7,477 | ÷ | 1,348,346,253 | |
| Feb 25, 2015 | 3.05 | = | 16.92 | ÷ | 5.55 | 5.55 | = | 7,380 | ÷ | 1,330,512,367 | |
| Feb 26, 2014 | 2.47 | = | 13.34 | ÷ | 5.39 | 5.39 | = | 7,143 | ÷ | 1,324,192,809 | |
| Feb 22, 2013 | 1.38 | = | 7.37 | ÷ | 5.34 | 5.34 | = | 7,249 | ÷ | 1,357,426,289 | |
| Feb 17, 2012 | 1.16 | = | 6.09 | ÷ | 5.25 | 5.25 | = | 7,622 | ÷ | 1,451,346,240 | |
| Feb 17, 2011 | 1.44 | = | 7.40 | ÷ | 5.12 | 5.12 | = | 7,806 | ÷ | 1,523,368,979 | |
| Feb 26, 2010 | 1.43 | = | 7.74 | ÷ | 5.42 | 5.42 | = | 8,188 | ÷ | 1,511,368,790 | |
| Feb 27, 2009 | 1.31 | = | 7.02 | ÷ | 5.36 | 5.36 | = | 8,050 | ÷ | 1,502,237,400 | |
| Feb 28, 2008 | 2.27 | = | 12.72 | ÷ | 5.60 | 5.60 | = | 8,357 | ÷ | 1,492,320,521 | |
| Mar 1, 2007 | 3.07 | = | 16.21 | ÷ | 5.28 | 5.28 | = | 7,821 | ÷ | 1,480,340,219 | |
| Mar 1, 2006 | 3.14 | = | 24.00 | ÷ | 7.65 | 7.65 | = | 6,283 | ÷ | 821,567,300 |
Based on: 10-K (reporting date: 2022-12-31), 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 Boston Scientific Corp. Annual Report.
The Price to Sales (P/S) ratio exhibits three distinct phases over the analyzed period: an initial period of valuation contraction, a subsequent phase of aggressive expansion, and a final stage of stabilization. The relationship between share price and sales per share reveals shifting market sentiment and operational growth patterns.
- Valuation Contraction (2006–2012)
- A significant downward trend in the P/S ratio is observed, falling from 3.14 in 2006 to a minimum of 1.16 in 2012. This decline was driven primarily by a sharp reduction in share price, which dropped from $24.00 to $6.09 during this interval. During the same period, sales per share remained relatively stagnant, fluctuating within a narrow range between $5.12 and $7.65, indicating that the compression in the P/S ratio was a result of market devaluation rather than a collapse in revenue generation.
- Valuation Expansion (2013–2019)
- A sustained upward trajectory in the P/S ratio occurred between 2013 and 2019, rising from 1.38 to a peak of 5.62. This expansion was characterized by a rapid increase in share price, which climbed from $7.37 to $39.86. While sales per share also grew—increasing from $5.34 to $7.09—the rate of share price appreciation significantly outpaced revenue growth, leading to a substantial increase in the valuation multiple.
- Valuation Stabilization (2020–2023)
- The P/S ratio entered a period of relative consolidation starting in 2020, fluctuating within a tight band between 5.19 and 5.34. During this phase, both share price and sales per share continued to trend upward, with the share price reaching $47.18 and sales per share reaching $8.84 by February 2023. The proportional growth of these two metrics resulted in a stable valuation multiple, suggesting that the market reached a consensus on the appropriate price to pay for each dollar of sales.
Overall, the data indicates a transition from a low-valuation environment characterized by price volatility to a high-valuation environment supported by consistent growth in sales per share. The final years of the period show a strong correlation between revenue growth and share price appreciation, maintaining a P/S ratio significantly higher than the levels observed in the first decade of the analysis.
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Comparison to Competitors
Boston Scientific Corp., P/S, long-term trends, comparison to competitors
| Boston Scientific Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Feb 23, 2023 | 5.34 | 4.25 | 362,239.81 | 13.81 | 3.72 | 1.40 |
| Feb 23, 2022 | 5.25 | 4.78 | 0.81 | 17.89 | 5.57 | 1.58 |
| Feb 23, 2021 | 5.54 | 6.30 | 0.60 | 21.29 | 4.36 | 1.24 |
| Feb 25, 2020 | 5.19 | 4.83 | 0.74 | 15.01 | 4.36 | 1.18 |
| Feb 19, 2019 | 5.62 | 4.37 | 0.88 | 16.06 | 3.92 | 1.12 |
| Feb 20, 2018 | 4.08 | 3.84 | 0.67 | 14.97 | 4.06 | 1.10 |
| Feb 23, 2017 | 3.98 | 3.70 | 0.51 | 10.11 | 4.07 | 0.83 |
| Feb 24, 2016 | 3.13 | 2.78 | 0.42 | 8.46 | 5.36 | 0.68 |
| Feb 25, 2015 | 3.05 | 3.53 | 0.54 | 8.80 | 3.74 | 0.80 |
| Feb 26, 2014 | 2.47 | 2.74 | 0.35 | 6.76 | 3.13 | 0.57 |
| Feb 22, 2013 | 1.38 | 1.38 | 0.31 | 10.56 | 2.36 | 0.53 |
| Feb 17, 2012 | 1.16 | 2.27 | 0.37 | 11.00 | 2.60 | 0.55 |
| Feb 17, 2011 | 1.44 | 2.06 | 0.44 | 9.15 | 2.48 | 0.50 |
| Feb 26, 2010 | 1.43 | 2.74 | 0.43 | 12.01 | 2.54 | 0.44 |
| Feb 27, 2009 | 1.31 | 2.83 | 0.33 | 5.14 | 4.30 | 0.43 |
| Feb 28, 2008 | 2.27 | 3.31 | 0.67 | 19.21 | 4.74 | 0.81 |
| Mar 1, 2007 | 3.07 | 3.68 | 0.89 | 11.23 | 4.81 | 1.03 |
| Mar 1, 2006 | 3.14 | 3.02 | 1.14 | 15.19 | 6.30 | 1.78 |
Based on: 10-K (reporting date: 2022-12-31), 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 (Health Care Equipment & Services)
Boston Scientific Corp., P/S, long-term trends, comparison to sector (health care equipment & services)
| Boston Scientific Corp. | Health Care Equipment & Services | |
|---|---|---|
| Feb 23, 2023 | 5.34 | 100,807.66 |
| Feb 23, 2022 | 5.25 | 2.07 |
| Feb 23, 2021 | 5.54 | 1.86 |
| Feb 25, 2020 | 5.19 | 1.74 |
| Feb 19, 2019 | 5.62 | 1.69 |
| Feb 20, 2018 | 4.08 | 1.58 |
| Feb 23, 2017 | 3.98 | 1.30 |
| Feb 24, 2016 | 3.13 | 1.17 |
| Feb 25, 2015 | 3.05 | 1.23 |
| Feb 26, 2014 | 2.47 | 0.95 |
| Feb 22, 2013 | 1.38 | 0.85 |
| Feb 17, 2012 | 1.16 | 1.04 |
| Feb 17, 2011 | 1.44 | 0.96 |
| Feb 26, 2010 | 1.43 | 1.02 |
| Feb 27, 2009 | 1.31 | 1.08 |
| Feb 28, 2008 | 2.27 | 1.48 |
| Mar 1, 2007 | 3.07 | 1.64 |
| Mar 1, 2006 | 3.14 | 2.17 |
Based on: 10-K (reporting date: 2022-12-31), 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 (Health Care)
Boston Scientific Corp., P/S, long-term trends, comparison to industry (health care)
| Boston Scientific Corp. | Health Care | |
|---|---|---|
| Feb 23, 2023 | 5.34 | 51,413.66 |
| Feb 23, 2022 | 5.25 | 3.28 |
| Feb 23, 2021 | 5.54 | 3.31 |
| Feb 25, 2020 | 5.19 | 3.21 |
| Feb 19, 2019 | 5.62 | 3.07 |
| Feb 20, 2018 | 4.08 | 3.06 |
| Feb 23, 2017 | 3.98 | 2.80 |
| Feb 24, 2016 | 3.13 | 2.72 |
| Feb 25, 2015 | 3.05 | 3.08 |
| Feb 26, 2014 | 2.47 | 2.81 |
| Feb 22, 2013 | 1.38 | 2.20 |
| Feb 17, 2012 | 1.16 | 1.90 |
| Feb 17, 2011 | 1.44 | 1.80 |
| Feb 26, 2010 | 1.43 | 2.08 |
| Feb 27, 2009 | 1.31 | 1.70 |
| Feb 28, 2008 | 2.27 | 2.42 |
| Mar 1, 2007 | 3.07 | 2.85 |
| Mar 1, 2006 | 3.14 | 3.17 |
Based on: 10-K (reporting date: 2022-12-31), 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).