Price to Sales (P/S)
since 2005
Calculation
Builders FirstSource Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 28, 2023 | 0.51 | = | 84.78 | ÷ | 164.67 | 164.67 | = | 22,726,418 | ÷ | 138,012,302 | |
| Mar 1, 2022 | 0.65 | = | 73.05 | ÷ | 112.54 | 112.54 | = | 19,893,856 | ÷ | 176,772,541 | |
| Feb 26, 2021 | 1.04 | = | 43.27 | ÷ | 41.46 | 41.46 | = | 8,558,874 | ÷ | 206,431,681 | |
| Feb 21, 2020 | 0.43 | = | 26.69 | ÷ | 62.69 | 62.69 | = | 7,280,431 | ÷ | 116,130,284 | |
| Mar 1, 2019 | 0.21 | = | 14.03 | ÷ | 66.96 | 66.96 | = | 7,724,771 | ÷ | 115,359,616 | |
| Mar 1, 2018 | 0.34 | = | 21.19 | ÷ | 61.64 | 61.64 | = | 7,034,209 | ÷ | 114,120,308 | |
| Mar 1, 2017 | 0.26 | = | 14.54 | ÷ | 56.83 | 56.83 | = | 6,367,284 | ÷ | 112,040,464 | |
| Mar 11, 2016 | 0.30 | = | 9.69 | ÷ | 32.38 | 32.38 | = | 3,564,425 | ÷ | 110,073,332 | |
| Mar 3, 2015 | 0.37 | = | 6.02 | ÷ | 16.33 | 16.33 | = | 1,604,096 | ÷ | 98,225,978 | |
| Feb 28, 2014 | 0.57 | = | 8.61 | ÷ | 15.21 | 15.21 | = | 1,489,892 | ÷ | 97,950,006 | |
| Mar 1, 2013 | 0.55 | = | 6.04 | ÷ | 11.05 | 11.05 | = | 1,070,676 | ÷ | 96,876,244 | |
| Mar 2, 2012 | 0.38 | = | 3.09 | ÷ | 8.06 | 8.06 | = | 779,093 | ÷ | 96,612,914 | |
| Mar 3, 2011 | 0.34 | = | 2.45 | ÷ | 7.24 | 7.24 | = | 700,343 | ÷ | 96,768,427 | |
| Mar 4, 2010 | 0.43 | = | 3.04 | ÷ | 7.01 | 7.01 | = | 677,886 | ÷ | 96,708,529 | |
| Mar 2, 2009 | 0.05 | = | 1.51 | ÷ | 28.65 | 28.65 | = | 1,034,524 | ÷ | 36,106,079 | |
| Mar 5, 2008 | 0.15 | = | 6.63 | ÷ | 44.20 | 44.20 | = | 1,592,462 | ÷ | 36,030,411 | |
| Mar 12, 2007 | 0.27 | = | 17.15 | ÷ | 63.31 | 63.31 | = | 2,239,454 | ÷ | 35,370,923 | |
| Mar 13, 2006 | 0.32 | = | 22.43 | ÷ | 69.95 | 69.95 | = | 2,337,757 | ÷ | 33,421,304 |
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 Builders FirstSource Inc. Annual Report.
The Price to Sales (P/S) ratio exhibits significant volatility over the analyzed period, reflecting a strong correlation between share price fluctuations and shifts in operational sales capacity.
- Financial Crisis and Valuation Bottom (2006–2010)
- A severe contraction is evident from 2006 to 2009, with the P/S ratio declining from 0.32 to a period low of 0.05. This trend was driven by a collapse in share price from 22.43 to 1.51 and a simultaneous reduction in sales per share. A sharp recovery in the ratio occurred in 2010, jumping to 0.43, as share price appreciation outpaced the slow recovery of sales per share.
- Stabilization and Moderate Growth (2011–2019)
- Between 2011 and 2019, the P/S ratio remained relatively range-bound, generally oscillating between 0.21 and 0.57. Although sales per share grew consistently from 7.24 in 2011 to 66.96 in 2019, the share price movements were proportional, maintaining a valuation multiple that rarely exceeded 0.60. This indicates a period of valuation consolidation where the market priced the entity based on a stable multiple of its revenue.
- Recent Valuation Surge and Revenue Expansion (2020–2023)
- A significant shift in valuation occurred starting in 2020, culminating in a peak P/S ratio of 1.04 in 2021. This represents the highest valuation multiple in the analyzed timeframe, driven by a rapid increase in share price to 43.27 while sales per share temporarily decreased to 41.46. From 2022 to 2023, the P/S ratio moderated to 0.65 and then 0.51. Notably, while the share price reached a peak of 84.78 in 2023, the P/S ratio declined because sales per share grew aggressively to 164.67, effectively offsetting the price gains with massive revenue expansion.
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Comparison to Competitors
Builders FirstSource Inc., P/S, long-term trends, comparison to competitors
| Builders FirstSource Inc. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 28, 2023 | 0.51 | 1.90 | 2.27 | 3.31 | 1.20 | 3.78 | 1.78 | 2.14 |
| Mar 1, 2022 | 0.65 | 1.87 | 2.26 | 3.03 | 1.50 | 3.73 | 1.57 | 2.21 |
| Feb 26, 2021 | 1.04 | 1.96 | 2.83 | 2.96 | 1.41 | 4.34 | 1.40 | 1.95 |
| Feb 21, 2020 | 0.43 | 2.34 | 1.48 | 1.87 | 1.18 | 3.51 | 2.07 | 1.75 |
| Mar 1, 2019 | 0.21 | 2.26 | 1.47 | 1.58 | 0.82 | 2.59 | 1.58 | 1.56 |
| Mar 1, 2018 | 0.34 | 2.17 | 2.24 | 1.74 | 1.11 | 2.74 | 1.91 | 1.67 |
| Mar 1, 2017 | 0.26 | 1.06 | 1.62 | 1.65 | 2.39 | 2.36 | 1.59 | 1.55 |
| Mar 11, 2016 | 0.30 | 0.80 | 0.86 | 1.25 | 2.59 | 2.06 | 1.43 | 1.26 |
| Mar 3, 2015 | 0.37 | 1.15 | 0.99 | 1.49 | 2.45 | 2.03 | 1.34 | 1.67 |
| Feb 28, 2014 | 0.57 | 1.12 | 1.17 | 1.63 | 2.54 | 1.90 | 1.15 | 1.60 |
| Mar 1, 2013 | 0.55 | 0.70 | 0.99 | 1.79 | 2.39 | 1.46 | 0.60 | 1.43 |
| Mar 2, 2012 | 0.38 | 0.82 | 1.30 | 1.08 | 2.15 | 1.28 | 0.62 | 1.31 |
| Mar 3, 2011 | 0.34 | 0.83 | 1.63 | 1.33 | 2.20 | 1.36 | 0.61 | 1.44 |
| Mar 4, 2010 | 0.43 | 0.64 | 1.23 | 0.95 | 1.66 | 0.94 | 0.64 | 1.19 |
| Mar 2, 2009 | 0.05 | 0.51 | 0.33 | 0.39 | 1.02 | 0.66 | 0.64 | 0.77 |
| Mar 5, 2008 | 0.15 | 0.98 | 1.06 | 0.91 | 3.45 | 1.21 | 1.03 | 1.30 |
| Mar 12, 2007 | 0.27 | 1.17 | 1.12 | 0.96 | 3.54 | 1.22 | 1.08 | 1.44 |
| Mar 13, 2006 | 0.32 | 1.06 | 1.44 | 0.93 | 3.72 | 1.24 | 0.86 | 1.36 |
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 (Capital Goods)
Builders FirstSource Inc., P/S, long-term trends, comparison to sector (capital goods)
| Builders FirstSource Inc. | Capital Goods | |
|---|---|---|
| Feb 28, 2023 | 0.51 | 2.09 |
| Mar 1, 2022 | 0.65 | 2.09 |
| Feb 26, 2021 | 1.04 | 2.11 |
| Feb 21, 2020 | 0.43 | 1.92 |
| Mar 1, 2019 | 0.21 | 1.62 |
| Mar 1, 2018 | 0.34 | 1.82 |
| Mar 1, 2017 | 0.26 | 1.76 |
| Mar 11, 2016 | 0.30 | 1.55 |
| Mar 3, 2015 | 0.37 | 1.66 |
| Feb 28, 2014 | 0.57 | 1.66 |
| Mar 1, 2013 | 0.55 | 1.37 |
| Mar 2, 2012 | 0.38 | 1.33 |
| Mar 3, 2011 | 0.34 | 1.45 |
| Mar 4, 2010 | 0.43 | 1.12 |
| Mar 2, 2009 | 0.05 | 0.71 |
| Mar 5, 2008 | 0.15 | 1.76 |
| Mar 12, 2007 | 0.27 | 1.91 |
| Mar 13, 2006 | 0.32 | 1.95 |
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 (Industrials)
Builders FirstSource Inc., P/S, long-term trends, comparison to industry (industrials)
| Builders FirstSource Inc. | Industrials | |
|---|---|---|
| Feb 28, 2023 | 0.51 | 1.80 |
| Mar 1, 2022 | 0.65 | 2.07 |
| Feb 26, 2021 | 1.04 | 2.14 |
| Feb 21, 2020 | 0.43 | 1.77 |
| Mar 1, 2019 | 0.21 | 1.58 |
| Mar 1, 2018 | 0.34 | 1.71 |
| Mar 1, 2017 | 0.26 | 1.68 |
| Mar 11, 2016 | 0.30 | 1.48 |
| Mar 3, 2015 | 0.37 | 1.65 |
| Feb 28, 2014 | 0.57 | 1.57 |
| Mar 1, 2013 | 0.55 | 1.31 |
| Mar 2, 2012 | 0.38 | 1.27 |
| Mar 3, 2011 | 0.34 | 1.39 |
| Mar 4, 2010 | 0.43 | 1.09 |
| Mar 2, 2009 | 0.05 | 0.71 |
| Mar 5, 2008 | 0.15 | 1.62 |
| Mar 12, 2007 | 0.27 | 1.73 |
| Mar 13, 2006 | 0.32 | 1.80 |
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).