EMC Corp. (NYSE:EMC)

The financial data from 2006 to 2016 reveals a period of consistent operational growth contrasted by fluctuations in market valuation. While sales per share exhibited a strong upward trajectory, the share price and the resulting price-to-sales (P/S) ratio experienced significant volatility, indicating shifting investor sentiment relative to the company's revenue generation.

Sales per Share Performance

A sustained growth pattern is evident in sales per share, which increased from 4.07 US$ in 2006 to 12.69 US$ by 2016. Aside from a minor contraction in 2010, where values dipped to 6.83 US$ from 7.39 US$, the metric grew consistently each year. This represents a substantial increase in the revenue generated per outstanding share over the eleven-year period.

Share Price Volatility

The share price demonstrated significant fluctuations. After remaining relatively stable between 2006 and 2008, a sharp decline occurred in 2009, with the price dropping to 10.14 US$. A strong recovery followed, peaking at 28.94 US$ in 2015 before receding to 25.93 US$ in 2016. The overall trend reflects a general increase in market value, though it was characterized by periodic instability.

Price-to-Sales (P/S) Ratio Trends

The P/S ratio fluctuated considerably, reflecting the divergence between share price movements and revenue growth. The ratio began at 3.48 in 2006 and reached its lowest point of 1.37 in 2009, coinciding with the share price trough. A subsequent peak occurred in 2011 at 3.31. From 2012 onward, a gradual compression is observed, with the ratio declining to 2.04 by 2016. This downward trend in the P/S ratio, despite rising sales per share, suggests a reduction in the valuation multiple the market was willing to pay for each dollar of revenue toward the end of the period.