Price to Sales (P/S)
since 2005
Calculation
Marathon Oil 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 17, 2022 | 2.86 | = | 21.89 | ÷ | 7.66 | 7.66 | = | 5,601 | ÷ | 730,765,163 | |
| Feb 23, 2021 | 2.84 | = | 11.16 | ÷ | 3.92 | 3.92 | = | 3,097 | ÷ | 789,075,988 | |
| Feb 20, 2020 | 1.61 | = | 10.25 | ÷ | 6.36 | 6.36 | = | 5,063 | ÷ | 795,849,999 | |
| Feb 21, 2019 | 2.31 | = | 16.68 | ÷ | 7.21 | 7.21 | = | 5,902 | ÷ | 818,504,459 | |
| Feb 22, 2018 | 2.95 | = | 15.18 | ÷ | 5.15 | 5.15 | = | 4,373 | ÷ | 849,755,866 | |
| Feb 24, 2017 | 3.31 | = | 15.73 | ÷ | 4.76 | 4.76 | = | 4,031 | ÷ | 847,201,196 | |
| Feb 25, 2016 | 0.91 | = | 7.39 | ÷ | 8.16 | 8.16 | = | 5,522 | ÷ | 676,886,641 | |
| Mar 2, 2015 | 1.72 | = | 27.67 | ÷ | 16.07 | 16.07 | = | 10,846 | ÷ | 674,944,619 | |
| Feb 28, 2014 | 1.61 | = | 33.50 | ÷ | 20.81 | 20.81 | = | 14,501 | ÷ | 696,944,638 | |
| Feb 22, 2013 | 1.57 | = | 34.71 | ÷ | 22.17 | 22.17 | = | 15,688 | ÷ | 707,709,281 | |
| Feb 29, 2012 | 1.63 | = | 33.89 | ÷ | 20.83 | 20.83 | = | 14,663 | ÷ | 703,925,642 | |
| Feb 28, 2011 | 0.49 | = | 49.60 | ÷ | 101.82 | 101.82 | = | 72,321 | ÷ | 710,280,842 | |
| Feb 26, 2010 | 0.38 | = | 28.95 | ÷ | 75.53 | 75.53 | = | 53,470 | ÷ | 707,926,768 | |
| Feb 27, 2009 | 0.21 | = | 23.27 | ÷ | 109.10 | 109.10 | = | 77,193 | ÷ | 707,524,845 | |
| Feb 29, 2008 | 0.58 | = | 53.16 | ÷ | 91.05 | 91.05 | = | 64,552 | ÷ | 708,970,468 | |
| Mar 1, 2007 | 0.49 | = | 45.57 | ÷ | 93.82 | 93.82 | = | 64,896 | ÷ | 691,725,904 | |
| Mar 6, 2006 | 0.40 | = | 34.89 | ÷ | 86.30 | 86.30 | = | 63,311 | ÷ | 733,617,340 |
Based on: 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 Marathon Oil Corp. Annual Report.
The Price to Sales (P/S) ratio experienced a significant structural shift between 2006 and 2022, moving from a period of low, stable multiples to a period of higher and more volatile valuations. This transition is characterized by a dramatic divergence between share price movements and sales per share.
- Initial Stability Period (2006–2011)
- During this interval, the P/S ratio remained consistently below 0.60, reflecting a valuation closely tied to high sales per share. While the share price fluctuated—reaching a peak of 53.16 in 2008 before dropping to 23.27 in 2009—the sales per share remained robust, generally staying above 75.00. This resulted in a low valuation multiple, indicating that the market valued the company at a fraction of its annual revenue per share.
- Revenue Contraction and Multiple Expansion (2012–2016)
- A sharp inflection point occurred in 2012, where the P/S ratio jumped from 0.49 to 1.63. This increase was not driven by a rise in share price, which actually declined from 49.60 in 2011 to 33.89 in 2012, but rather by a precipitous drop in sales per share from 101.82 to 20.83. The valuation multiple remained elevated between 1.57 and 1.72 through 2015, before a temporary correction to 0.91 in 2016 as the share price hit a period low of 7.39.
- High Volatility and Peak Multiples (2017–2022)
- The most recent period is marked by the highest recorded P/S ratios, peaking at 3.31 in 2017. This expansion continued despite a continuing downward trend in sales per share, which reached a low of 3.92 in 2021. The ratio exhibited volatility, dipping to 1.61 in 2020 during a period of share price decline, before rebounding to 2.86 by 2022. This suggests that in later years, the share price was less dependent on immediate sales volume and more influenced by other market valuation drivers.
Overall, the financial trajectory reveals a complete inversion of the valuation profile. The company transitioned from a high-revenue, low-multiple entity to one with significantly lower sales per share and a substantially higher P/S ratio, indicating a fundamental change in how the market priced the company's revenue stream.
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Comparison to Competitors
Marathon Oil Corp., P/S, long-term trends, comparison to competitors
| Marathon Oil Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Feb 17, 2022 | 2.86 | 1.69 | 2.58 | 1.17 |
| Feb 23, 2021 | 2.84 | 2.09 | 3.52 | 1.34 |
| Feb 20, 2020 | 1.61 | 1.46 | 1.94 | 0.88 |
| Feb 21, 2019 | 2.31 | 1.43 | 2.16 | 1.20 |
| Feb 22, 2018 | 2.95 | 1.56 | 2.21 | 1.35 |
| Feb 24, 2017 | 3.31 | 1.91 | 2.51 | 1.54 |
| Feb 25, 2016 | 0.91 | 1.24 | 1.38 | 1.30 |
| Mar 2, 2015 | 1.72 | 1.02 | 1.57 | 0.95 |
| Feb 28, 2014 | 1.61 | 0.98 | 1.50 | 0.98 |
| Feb 22, 2013 | 1.57 | 0.98 | 1.23 | 0.89 |
| Feb 29, 2012 | 1.63 | 0.88 | 0.39 | 0.88 |
| Feb 28, 2011 | 0.49 | 1.03 | 0.59 | 1.14 |
| Feb 26, 2010 | 0.38 | 0.87 | 0.48 | 1.02 |
| Feb 27, 2009 | 0.21 | 0.48 | 0.24 | 0.73 |
| Feb 29, 2008 | 0.58 | 0.86 | 0.67 | 1.23 |
| Mar 1, 2007 | 0.49 | 0.72 | 0.60 | 1.12 |
| Mar 6, 2006 | 0.40 | 0.66 | 0.48 | 1.01 |
Based on: 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 (Oil, Gas & Consumable Fuels)
Marathon Oil Corp., P/S, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Marathon Oil Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Feb 17, 2022 | 2.86 | 1.48 |
| Feb 23, 2021 | 2.84 | 1.72 |
| Feb 20, 2020 | 1.61 | 1.15 |
| Feb 21, 2019 | 2.31 | 1.35 |
| Feb 22, 2018 | 2.95 | 1.48 |
| Feb 24, 2017 | 3.31 | 1.72 |
| Feb 25, 2016 | 0.91 | 1.29 |
| Mar 2, 2015 | 1.72 | 1.02 |
| Feb 28, 2014 | 1.61 | 1.02 |
| Feb 22, 2013 | 1.57 | 0.94 |
| Feb 29, 2012 | 1.63 | 0.75 |
| Feb 28, 2011 | 0.49 | 0.98 |
| Feb 26, 2010 | 0.38 | 0.85 |
| Feb 27, 2009 | 0.21 | 0.54 |
| Feb 29, 2008 | 0.58 | 1.00 |
| Mar 1, 2007 | 0.49 | 0.88 |
| Mar 6, 2006 | 0.40 | 0.79 |
Based on: 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 (Energy)
Marathon Oil Corp., P/S, long-term trends, comparison to industry (energy)
| Marathon Oil Corp. | Energy | |
|---|---|---|
| Feb 17, 2022 | 2.86 | 1.52 |
| Feb 23, 2021 | 2.84 | 1.69 |
| Feb 20, 2020 | 1.61 | 1.18 |
| Feb 21, 2019 | 2.31 | 1.38 |
| Feb 22, 2018 | 2.95 | 1.63 |
| Feb 24, 2017 | 3.31 | 1.90 |
| Feb 25, 2016 | 0.91 | 1.37 |
| Mar 2, 2015 | 1.72 | 1.10 |
| Feb 28, 2014 | 1.61 | 1.11 |
| Feb 22, 2013 | 1.57 | 1.02 |
| Feb 29, 2012 | 1.63 | 0.83 |
| Feb 28, 2011 | 0.49 | 1.10 |
| Feb 26, 2010 | 0.38 | 0.93 |
| Feb 27, 2009 | 0.21 | 0.57 |
| Feb 29, 2008 | 0.58 | 1.09 |
| Mar 1, 2007 | 0.49 | 0.96 |
| Mar 6, 2006 | 0.40 | 0.86 |
Based on: 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).