Price to Sales (P/S)
since 2005
Calculation
Monsanto Co., 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Oct 27, 2017 | 3.65 | = | 121.52 | ÷ | 33.26 | 33.26 | = | 14,640 | ÷ | 440,199,969 | |
| Oct 19, 2016 | 3.32 | = | 102.49 | ÷ | 30.83 | 30.83 | = | 13,502 | ÷ | 437,982,595 | |
| Oct 29, 2015 | 2.75 | = | 93.73 | ÷ | 34.11 | 34.11 | = | 15,001 | ÷ | 439,837,164 | |
| Oct 29, 2014 | 3.42 | = | 112.18 | ÷ | 32.75 | 32.75 | = | 15,855 | ÷ | 484,073,332 | |
| Oct 23, 2013 | 3.81 | = | 107.62 | ÷ | 28.26 | 28.26 | = | 14,861 | ÷ | 525,837,818 | |
| Oct 19, 2012 | 3.51 | = | 88.69 | ÷ | 25.26 | 25.26 | = | 13,504 | ÷ | 534,598,091 | |
| Nov 14, 2011 | 3.37 | = | 74.39 | ÷ | 22.08 | 22.08 | = | 11,822 | ÷ | 535,409,098 | |
| Oct 27, 2010 | 3.08 | = | 60.25 | ÷ | 19.58 | 19.58 | = | 10,502 | ÷ | 536,392,459 | |
| Oct 27, 2009 | 3.31 | = | 71.27 | ÷ | 21.51 | 21.51 | = | 11,724 | ÷ | 545,055,022 | |
| Oct 24, 2008 | 3.47 | = | 71.95 | ÷ | 20.74 | 20.74 | = | 11,365 | ÷ | 547,941,657 | |
| Oct 26, 2007 | 6.02 | = | 94.28 | ÷ | 15.67 | 15.67 | = | 8,563 | ÷ | 546,319,136 | |
| Nov 2, 2006 | 3.27 | = | 44.17 | ÷ | 13.52 | 13.52 | = | 7,344 | ÷ | 543,300,591 | |
| Nov 8, 2005 | 2.69 | = | 31.56 | ÷ | 11.72 | 11.72 | = | 6,294 | ÷ | 536,968,150 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Monsanto Co. Annual Report.
The analysis of the Price to Sales (P/S) ratio reveals a period of valuation volatility followed by a stabilization of the multiple relative to revenue growth. While both share price and sales per share exhibited long-term upward trajectories from 2005 to 2017, the P/S ratio indicates fluctuating market sentiment regarding the value assigned to each dollar of revenue generated.
- Revenue Growth and Valuation Correlation
- Sales per share demonstrated a consistent and strong upward trend, rising from 11.72 USD in 2005 to 33.26 USD in 2017. This steady growth in fundamental revenue per share supported the overall increase in share price, which rose from 31.56 USD to 121.52 USD over the same period.
- Analysis of P/S Ratio Anomalies
- A significant valuation spike occurred in 2007, where the P/S ratio reached a peak of 6.02. This represents a period where the share price increased disproportionately to the growth in sales per share. This peak was followed by a sharp correction in 2008, with the ratio returning to 3.47, suggesting a market realignment of the company's valuation relative to its top-line performance.
- Long-Term Valuation Stability
- Between 2008 and 2017, the P/S ratio remained within a tighter band, generally fluctuating between 2.75 and 3.81. A notable dip to 2.75 occurred in 2015, which coincided with a decline in share price despite sales per share reaching a near-peak of 34.11 USD. By 2017, the ratio recovered to 3.65, indicating a renewed increase in the premium the market was willing to pay for the company's sales.
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Comparison to Competitors
Monsanto Co., P/S, long-term trends, comparison to competitors
| Monsanto Co. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Oct 27, 2017 | 3.65 | 3.88 | 2.83 |
| Oct 19, 2016 | 3.32 | 4.52 | 2.95 |
| Oct 29, 2015 | 2.75 | 5.05 | 3.19 |
| Oct 29, 2014 | 3.42 | 4.68 | 2.43 |
| Oct 23, 2013 | 3.81 | 6.82 | 2.22 |
| Oct 19, 2012 | 3.51 | 10.89 | 1.76 |
| Nov 14, 2011 | 3.37 | 7.65 | 2.09 |
| Oct 27, 2010 | 3.08 | 6.13 | 1.77 |
| Oct 27, 2009 | 3.31 | 1.66 | 1.33 |
| Oct 24, 2008 | 3.47 | 8.16 | 1.51 |
| Oct 26, 2007 | 6.02 | — | 1.71 |
| Nov 2, 2006 | 3.27 | — | 1.36 |
| Nov 8, 2005 | 2.69 | — | 1.60 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Durables & Apparel)
Monsanto Co., P/S, long-term trends, comparison to sector (consumer durables & apparel)
| Monsanto Co. | Consumer Durables & Apparel | |
|---|---|---|
| Oct 27, 2017 | 3.65 | 2.89 |
| Oct 19, 2016 | 3.32 | 3.05 |
| Oct 29, 2015 | 2.75 | 3.29 |
| Oct 29, 2014 | 3.42 | 2.55 |
| Oct 23, 2013 | 3.81 | 2.46 |
| Oct 19, 2012 | 3.51 | 2.12 |
| Nov 14, 2011 | 3.37 | 2.27 |
| Oct 27, 2010 | 3.08 | 1.88 |
| Oct 27, 2009 | 3.31 | 1.33 |
| Oct 24, 2008 | 3.47 | 1.60 |
| Oct 26, 2007 | 6.02 | 1.71 |
| Nov 2, 2006 | 3.27 | 1.36 |
| Nov 8, 2005 | 2.69 | 1.60 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Discretionary)
Monsanto Co., P/S, long-term trends, comparison to industry (consumer discretionary)
| Monsanto Co. | Consumer Discretionary | |
|---|---|---|
| Oct 27, 2017 | 3.65 | 2.06 |
| Oct 19, 2016 | 3.32 | 1.68 |
| Oct 29, 2015 | 2.75 | 1.57 |
| Oct 29, 2014 | 3.42 | 1.32 |
| Oct 23, 2013 | 3.81 | 1.33 |
| Oct 19, 2012 | 3.51 | 1.06 |
| Nov 14, 2011 | 3.37 | 0.97 |
| Oct 27, 2010 | 3.08 | 0.96 |
| Oct 27, 2009 | 3.31 | 0.92 |
| Oct 24, 2008 | 3.47 | 0.66 |
| Oct 26, 2007 | 6.02 | 0.79 |
| Nov 2, 2006 | 3.27 | 0.86 |
| Nov 8, 2005 | 2.69 | 0.79 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).