Price to Sales (P/S)
since 2005
Calculation
Raytheon 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 12, 2020 | 2.19 | = | 229.76 | ÷ | 104.78 | 104.78 | = | 29,176 | ÷ | 278,441,000 | |
| Feb 13, 2019 | 1.89 | = | 180.94 | ÷ | 95.87 | 95.87 | = | 27,058 | ÷ | 282,239,000 | |
| Feb 14, 2018 | 2.42 | = | 212.58 | ÷ | 87.86 | 87.86 | = | 25,348 | ÷ | 288,506,000 | |
| Feb 15, 2017 | 1.85 | = | 151.96 | ÷ | 82.18 | 82.18 | = | 24,069 | ÷ | 292,880,000 | |
| Feb 10, 2016 | 1.63 | = | 126.57 | ÷ | 77.75 | 77.75 | = | 23,247 | ÷ | 298,998,000 | |
| Feb 11, 2015 | 1.44 | = | 107.15 | ÷ | 74.27 | 74.27 | = | 22,826 | ÷ | 307,323,000 | |
| Feb 11, 2014 | 1.25 | = | 94.29 | ÷ | 75.37 | 75.37 | = | 23,706 | ÷ | 314,509,000 | |
| Feb 13, 2013 | 0.72 | = | 53.97 | ÷ | 74.81 | 74.81 | = | 24,414 | ÷ | 326,355,000 | |
| Feb 22, 2012 | 0.69 | = | 50.41 | ÷ | 73.14 | 73.14 | = | 24,857 | ÷ | 339,876,000 | |
| Feb 23, 2011 | 0.73 | = | 50.83 | ÷ | 70.01 | 70.01 | = | 25,183 | ÷ | 359,694,000 | |
| Feb 24, 2010 | 0.86 | = | 56.17 | ÷ | 65.63 | 65.63 | = | 24,881 | ÷ | 379,083,000 | |
| Feb 25, 2009 | 0.74 | = | 43.02 | ÷ | 57.92 | 57.92 | = | 23,174 | ÷ | 400,119,000 | |
| Feb 27, 2008 | 1.33 | = | 66.42 | ÷ | 49.96 | 49.96 | = | 21,301 | ÷ | 426,386,000 | |
| Feb 22, 2007 | 1.21 | = | 55.13 | ÷ | 45.48 | 45.48 | = | 20,291 | ÷ | 446,193,000 | |
| Mar 2, 2006 | 0.90 | = | 43.98 | ÷ | 49.08 | 49.08 | = | 21,894 | ÷ | 446,115,000 |
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 Raytheon Co. Annual Report.
The financial data from 2006 to 2020 reveals a significant divergence between the steady growth of revenue generation and the more volatile fluctuations of market valuation. While sales per share followed a consistent upward trajectory, the price-to-sales (P/S) ratio underwent distinct cycles of contraction and expansion, indicating shifting market sentiment regarding the value of the company's revenue.
- Revenue Performance per Share
- A consistent and linear increase in sales per share is observed throughout the entire period. Starting at 49.08 US$ in 2006, the value grew to 104.78 US$ by 2020. This steady growth suggests a sustained improvement in the company's ability to generate revenue on a per-share basis, regardless of external market volatility.
- Valuation Cycle Analysis (P/S Ratio)
- The P/S ratio experienced three distinct phases. First, a period of volatility occurred between 2006 and 2008, where the ratio peaked at 1.33. Second, a prolonged period of valuation contraction was observed from 2009 to 2013, during which the P/S ratio remained below 1.0, reaching a low of 0.69 in 2012. This suggests a phase where the share price significantly lagged behind revenue growth.
- Third, a robust expansion phase began in 2014, with the P/S ratio climbing from 1.25 to a peak of 2.42 in 2018. This represents a substantial rerating of the company's revenue by the market, where investors were willing to pay a much higher premium for each dollar of sales.
- Share Price Correlation
- The share price exhibited greater volatility than sales per share, which directly drove the fluctuations in the P/S ratio. A notable correction is observed in 2009, where the price dropped to 43.02 US$. Conversely, the period from 2014 to 2020 saw a dramatic escalation in share price, rising from 94.29 US$ to a high of 229.76 US$, far outpacing the growth rate of sales per share.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Raytheon Co., P/S, long-term trends, comparison to competitors
| Raytheon Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Feb 12, 2020 | 2.19 | 2.34 | 1.48 | 1.87 | 1.18 | 3.51 | 2.07 | 1.75 |
| Feb 13, 2019 | 1.89 | 2.26 | 1.47 | 1.58 | 0.82 | 2.59 | 1.58 | 1.56 |
| Feb 14, 2018 | 2.42 | 2.17 | 2.24 | 1.74 | 1.11 | 2.74 | 1.91 | 1.67 |
| Feb 15, 2017 | 1.85 | 1.06 | 1.62 | 1.65 | 2.39 | 2.36 | 1.59 | 1.55 |
| Feb 10, 2016 | 1.63 | 0.80 | 0.86 | 1.25 | 2.59 | 2.06 | 1.43 | 1.26 |
| Feb 11, 2015 | 1.44 | 1.15 | 0.99 | 1.49 | 2.45 | 2.03 | 1.34 | 1.67 |
| Feb 11, 2014 | 1.25 | 1.12 | 1.17 | 1.63 | 2.54 | 1.90 | 1.15 | 1.60 |
| Feb 13, 2013 | 0.72 | 0.70 | 0.99 | 1.79 | 2.39 | 1.46 | 0.60 | 1.43 |
| Feb 22, 2012 | 0.69 | 0.82 | 1.30 | 1.08 | 2.15 | 1.28 | 0.62 | 1.31 |
| Feb 23, 2011 | 0.73 | 0.83 | 1.63 | 1.33 | 2.20 | 1.36 | 0.61 | 1.44 |
| Feb 24, 2010 | 0.86 | 0.64 | 1.23 | 0.95 | 1.66 | 0.94 | 0.64 | 1.19 |
| Feb 25, 2009 | 0.74 | 0.51 | 0.33 | 0.39 | 1.02 | 0.66 | 0.64 | 0.77 |
| Feb 27, 2008 | 1.33 | 0.98 | 1.06 | 0.91 | 3.45 | 1.21 | 1.03 | 1.30 |
| Feb 22, 2007 | 1.21 | 1.17 | 1.12 | 0.96 | 3.54 | 1.22 | 1.08 | 1.44 |
| Mar 2, 2006 | 0.90 | 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)
Raytheon Co., P/S, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Feb 12, 2020 | 2.19 | 1.92 |
| Feb 13, 2019 | 1.89 | 1.62 |
| Feb 14, 2018 | 2.42 | 1.82 |
| Feb 15, 2017 | 1.85 | 1.76 |
| Feb 10, 2016 | 1.63 | 1.55 |
| Feb 11, 2015 | 1.44 | 1.66 |
| Feb 11, 2014 | 1.25 | 1.66 |
| Feb 13, 2013 | 0.72 | 1.37 |
| Feb 22, 2012 | 0.69 | 1.33 |
| Feb 23, 2011 | 0.73 | 1.45 |
| Feb 24, 2010 | 0.86 | 1.12 |
| Feb 25, 2009 | 0.74 | 0.71 |
| Feb 27, 2008 | 1.33 | 1.76 |
| Feb 22, 2007 | 1.21 | 1.91 |
| Mar 2, 2006 | 0.90 | 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)
Raytheon Co., P/S, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Feb 12, 2020 | 2.19 | 1.77 |
| Feb 13, 2019 | 1.89 | 1.58 |
| Feb 14, 2018 | 2.42 | 1.71 |
| Feb 15, 2017 | 1.85 | 1.68 |
| Feb 10, 2016 | 1.63 | 1.48 |
| Feb 11, 2015 | 1.44 | 1.65 |
| Feb 11, 2014 | 1.25 | 1.57 |
| Feb 13, 2013 | 0.72 | 1.31 |
| Feb 22, 2012 | 0.69 | 1.27 |
| Feb 23, 2011 | 0.73 | 1.39 |
| Feb 24, 2010 | 0.86 | 1.09 |
| Feb 25, 2009 | 0.74 | 0.71 |
| Feb 27, 2008 | 1.33 | 1.62 |
| Feb 22, 2007 | 1.21 | 1.73 |
| Mar 2, 2006 | 0.90 | 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).