Price to Sales (P/S)
since 2005
Calculation
General Dynamics Corp., 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2020 | 1.37 | = | 186.25 | ÷ | 135.86 | 135.86 | = | 39,350 | ÷ | 289,627,333 | |
| Feb 13, 2019 | 1.38 | = | 173.48 | ÷ | 125.57 | 125.57 | = | 36,193 | ÷ | 288,235,928 | |
| Feb 12, 2018 | 2.01 | = | 209.53 | ÷ | 104.31 | 104.31 | = | 30,973 | ÷ | 296,933,621 | |
| Feb 6, 2017 | 1.77 | = | 183.04 | ÷ | 103.56 | 103.56 | = | 31,353 | ÷ | 302,742,234 | |
| Feb 8, 2016 | 1.31 | = | 132.26 | ÷ | 101.13 | 101.13 | = | 31,469 | ÷ | 311,161,810 | |
| Feb 9, 2015 | 1.47 | = | 136.94 | ÷ | 93.01 | 93.01 | = | 30,852 | ÷ | 331,704,599 | |
| Feb 7, 2014 | 1.14 | = | 104.19 | ÷ | 91.21 | 91.21 | = | 31,218 | ÷ | 342,250,398 | |
| Feb 8, 2013 | 0.75 | = | 66.82 | ÷ | 89.16 | 89.16 | = | 31,513 | ÷ | 353,442,904 | |
| Feb 17, 2012 | 0.77 | = | 70.88 | ÷ | 91.58 | 91.58 | = | 32,677 | ÷ | 356,821,649 | |
| Feb 18, 2011 | 0.90 | = | 78.11 | ÷ | 87.11 | 87.11 | = | 32,466 | ÷ | 372,704,788 | |
| Feb 19, 2010 | 0.88 | = | 72.61 | ÷ | 82.91 | 82.91 | = | 31,981 | ÷ | 385,725,209 | |
| Feb 20, 2009 | 6.70 | = | 50.82 | ÷ | 7.59 | 7.59 | = | 2,930 | ÷ | 386,068,301 | |
| Feb 22, 2008 | 1.24 | = | 83.65 | ÷ | 67.72 | 67.72 | = | 27,240 | ÷ | 402,225,356 | |
| Feb 23, 2007 | 1.33 | = | 79.05 | ÷ | 59.31 | 59.31 | = | 24,063 | ÷ | 405,728,088 | |
| Mar 3, 2006 | 1.20 | = | 63.91 | ÷ | 53.07 | 53.07 | = | 21,244 | ÷ | 400,288,502 |
Based on: 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 General Dynamics Corp. Annual Report.
The Price-to-Sales (P/S) ratio exhibited significant volatility over the period from 2006 to 2020, characterized by an initial period of stability, a sharp anomaly, a subsequent contraction, and a later period of valuation expansion.
- Initial Stability and 2009 Anomaly
- From 2006 to 2008, the P/S ratio remained relatively consistent, ranging between 1.20 and 1.33. A significant outlier occurred in 2009, where the ratio spiked to 6.70. This surge was driven by a precipitous drop in sales per share to 7.59, while the share price remained relatively higher, leading to an atypically high valuation multiple for that period.
- Valuation Contraction (2010–2013)
- Following the 2009 peak, the P/S ratio entered a period of contraction, falling below 1.00 starting in 2010. The ratio reached a cyclical low of 0.75 in 2013. During this window, sales per share recovered and grew steadily, while share prices experienced moderate fluctuations, resulting in a lower market premium assigned to the company's revenue.
- Expansion and Peak Valuation (2014–2018)
- A sustained upward trend in the P/S ratio began in 2014, climbing from 1.14 to a peak of 2.01 in 2018. This growth coincided with a significant increase in share price, which rose from 104.19 in 2014 to 209.53 in 2018. The expansion of the multiple suggests an increase in market confidence or a higher valuation premium attributed to each dollar of sales.
- Normalization and Stabilization (2019–2020)
- In the final two years of the analysis, the P/S ratio corrected from its 2018 peak and stabilized between 1.37 and 1.38. This stabilization occurred despite continued growth in sales per share, which reached 135.86 by 2020, indicating a return to valuation levels more consistent with the historical averages seen in the early part of the observed period.
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Comparison to Competitors
General Dynamics Corp., P/S, long-term trends, comparison to competitors
| General Dynamics Corp. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 10, 2020 | 1.37 | 2.34 | 1.48 | 1.87 | 1.18 | 3.51 | 2.07 | 1.75 |
| Feb 13, 2019 | 1.38 | 2.26 | 1.47 | 1.58 | 0.82 | 2.59 | 1.58 | 1.56 |
| Feb 12, 2018 | 2.01 | 2.17 | 2.24 | 1.74 | 1.11 | 2.74 | 1.91 | 1.67 |
| Feb 6, 2017 | 1.77 | 1.06 | 1.62 | 1.65 | 2.39 | 2.36 | 1.59 | 1.55 |
| Feb 8, 2016 | 1.31 | 0.80 | 0.86 | 1.25 | 2.59 | 2.06 | 1.43 | 1.26 |
| Feb 9, 2015 | 1.47 | 1.15 | 0.99 | 1.49 | 2.45 | 2.03 | 1.34 | 1.67 |
| Feb 7, 2014 | 1.14 | 1.12 | 1.17 | 1.63 | 2.54 | 1.90 | 1.15 | 1.60 |
| Feb 8, 2013 | 0.75 | 0.70 | 0.99 | 1.79 | 2.39 | 1.46 | 0.60 | 1.43 |
| Feb 17, 2012 | 0.77 | 0.82 | 1.30 | 1.08 | 2.15 | 1.28 | 0.62 | 1.31 |
| Feb 18, 2011 | 0.90 | 0.83 | 1.63 | 1.33 | 2.20 | 1.36 | 0.61 | 1.44 |
| Feb 19, 2010 | 0.88 | 0.64 | 1.23 | 0.95 | 1.66 | 0.94 | 0.64 | 1.19 |
| Feb 20, 2009 | 6.70 | 0.51 | 0.33 | 0.39 | 1.02 | 0.66 | 0.64 | 0.77 |
| Feb 22, 2008 | 1.24 | 0.98 | 1.06 | 0.91 | 3.45 | 1.21 | 1.03 | 1.30 |
| Feb 23, 2007 | 1.33 | 1.17 | 1.12 | 0.96 | 3.54 | 1.22 | 1.08 | 1.44 |
| Mar 3, 2006 | 1.20 | 1.06 | 1.44 | 0.93 | 3.72 | 1.24 | 0.86 | 1.36 |
Based on: 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)
General Dynamics Corp., P/S, long-term trends, comparison to sector (capital goods)
| General Dynamics Corp. | Capital Goods | |
|---|---|---|
| Feb 10, 2020 | 1.37 | 1.92 |
| Feb 13, 2019 | 1.38 | 1.62 |
| Feb 12, 2018 | 2.01 | 1.82 |
| Feb 6, 2017 | 1.77 | 1.76 |
| Feb 8, 2016 | 1.31 | 1.55 |
| Feb 9, 2015 | 1.47 | 1.66 |
| Feb 7, 2014 | 1.14 | 1.66 |
| Feb 8, 2013 | 0.75 | 1.37 |
| Feb 17, 2012 | 0.77 | 1.33 |
| Feb 18, 2011 | 0.90 | 1.45 |
| Feb 19, 2010 | 0.88 | 1.12 |
| Feb 20, 2009 | 6.70 | 0.71 |
| Feb 22, 2008 | 1.24 | 1.76 |
| Feb 23, 2007 | 1.33 | 1.91 |
| Mar 3, 2006 | 1.20 | 1.95 |
Based on: 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)
General Dynamics Corp., P/S, long-term trends, comparison to industry (industrials)
| General Dynamics Corp. | Industrials | |
|---|---|---|
| Feb 10, 2020 | 1.37 | 1.77 |
| Feb 13, 2019 | 1.38 | 1.58 |
| Feb 12, 2018 | 2.01 | 1.71 |
| Feb 6, 2017 | 1.77 | 1.68 |
| Feb 8, 2016 | 1.31 | 1.48 |
| Feb 9, 2015 | 1.47 | 1.65 |
| Feb 7, 2014 | 1.14 | 1.57 |
| Feb 8, 2013 | 0.75 | 1.31 |
| Feb 17, 2012 | 0.77 | 1.27 |
| Feb 18, 2011 | 0.90 | 1.39 |
| Feb 19, 2010 | 0.88 | 1.09 |
| Feb 20, 2009 | 6.70 | 0.71 |
| Feb 22, 2008 | 1.24 | 1.62 |
| Feb 23, 2007 | 1.33 | 1.73 |
| Mar 3, 2006 | 1.20 | 1.80 |
Based on: 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).