Price to Sales (P/S)
since 2020
Calculation
Carrier Global 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 7, 2023 | 1.81 | = | 44.39 | ÷ | 24.48 | 24.48 | = | 20,421 | ÷ | 834,187,942 | |
| Feb 8, 2022 | 1.91 | = | 46.06 | ÷ | 24.09 | 24.09 | = | 20,613 | ÷ | 855,514,035 | |
| Feb 9, 2021 | 1.85 | = | 37.25 | ÷ | 20.08 | 20.08 | = | 17,456 | ÷ | 869,213,146 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Carrier Global Corp. Annual Report.
The price-to-sales (P/S) ratio exhibits a high degree of stability over the analyzed three-year period, fluctuating within a narrow range between 1.81 and 1.91. This indicates a consistent market valuation of the company's revenue streams despite variations in share price and operational performance.
- Share Price Trends
- A notable increase in share price occurred between February 2021 and February 2022, rising from 37.25 USD to 46.06 USD. This was followed by a moderate correction, with the price settling at 44.39 USD by February 2023.
- Sales per Share Performance
- Revenue efficiency per share demonstrated a consistent upward trajectory. Values rose from 20.08 USD in 2021 to 24.09 USD in 2022, with a further marginal increase to 24.48 USD in 2023, reflecting steady top-line growth on a per-share basis.
- Valuation Dynamics
- The P/S ratio remained relatively flat, suggesting that the market's valuation of each dollar of sales has remained constant. The peak ratio of 1.91 in 2022 aligns with the peak share price, while the decline to 1.81 in 2023 is a result of the share price decreasing even as sales per share continued to climb, indicating a slight contraction in the valuation multiple relative to revenue growth.
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Comparison to Competitors
Carrier Global Corp., P/S, long-term trends, comparison to competitors
| Carrier Global Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 7, 2023 | 1.81 | 1.90 | 2.27 | 3.31 | 1.20 | 3.78 | 1.78 | 2.14 |
| Feb 8, 2022 | 1.91 | 1.87 | 2.26 | 3.03 | 1.50 | 3.73 | 1.57 | 2.21 |
| Feb 9, 2021 | 1.85 | 1.96 | 2.83 | 2.96 | 1.41 | 4.34 | 1.40 | 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).
Comparison to Sector (Capital Goods)
Carrier Global Corp., P/S, long-term trends, comparison to sector (capital goods)
| Carrier Global Corp. | Capital Goods | |
|---|---|---|
| Feb 7, 2023 | 1.81 | 2.09 |
| Feb 8, 2022 | 1.91 | 2.09 |
| Feb 9, 2021 | 1.85 | 2.11 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Comparison to Industry (Industrials)
Carrier Global Corp., P/S, long-term trends, comparison to industry (industrials)
| Carrier Global Corp. | Industrials | |
|---|---|---|
| Feb 7, 2023 | 1.81 | 1.80 |
| Feb 8, 2022 | 1.91 | 2.07 |
| Feb 9, 2021 | 1.85 | 2.14 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).