Price to Sales (P/S)
since 2005
Calculation
Time Warner Inc., 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 22, 2018 | 2.35 | = | 94.37 | ÷ | 40.10 | 40.10 | = | 31,271 | ÷ | 779,851,623 | |
| Feb 23, 2017 | 2.56 | = | 97.06 | ÷ | 37.86 | 37.86 | = | 29,318 | ÷ | 774,334,281 | |
| Feb 25, 2016 | 1.87 | = | 66.66 | ÷ | 35.59 | 35.59 | = | 28,118 | ÷ | 790,154,346 | |
| Feb 26, 2015 | 2.50 | = | 82.42 | ÷ | 32.94 | 32.94 | = | 27,359 | ÷ | 830,521,982 | |
| Feb 26, 2014 | 1.94 | = | 64.69 | ÷ | 33.38 | 33.38 | = | 29,795 | ÷ | 892,661,216 | |
| Feb 22, 2013 | 1.72 | = | 52.99 | ÷ | 30.73 | 30.73 | = | 28,729 | ÷ | 934,790,459 | |
| Feb 24, 2012 | 1.26 | = | 37.69 | ÷ | 29.88 | 29.88 | = | 28,974 | ÷ | 969,638,079 | |
| Feb 18, 2011 | 1.55 | = | 38.18 | ÷ | 24.60 | 24.60 | = | 26,888 | ÷ | 1,092,833,062 | |
| Feb 19, 2010 | 1.31 | = | 29.44 | ÷ | 22.42 | 22.42 | = | 25,785 | ÷ | 1,150,231,940 | |
| Feb 20, 2009 | 0.56 | = | 22.05 | ÷ | 39.29 | 39.29 | = | 46,984 | ÷ | 1,195,931,882 | |
| Feb 22, 2008 | 1.27 | = | 49.47 | ÷ | 38.99 | 38.99 | = | 46,482 | ÷ | 1,192,107,190 | |
| Feb 23, 2007 | 1.86 | = | 64.50 | ÷ | 34.60 | 34.60 | = | 44,224 | ÷ | 1,278,118,873 | |
| Feb 27, 2006 | 1.79 | = | 51.93 | ÷ | 29.07 | 29.07 | = | 43,652 | ÷ | 1,501,766,104 |
Based on: 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 Time Warner Inc. Annual Report.
The Price to Sales (P/S) ratio demonstrates significant volatility over the period from 2006 to 2018, reflecting fluctuating market sentiment relative to revenue generation. The multiple experienced a sharp contraction during the late 2000s before entering a period of sustained expansion and eventual stabilization at a higher valuation baseline.
- Valuation Contraction (2006–2009)
- A pronounced downward trend is observed beginning in 2007, with the P/S ratio declining from 1.86 to a period low of 0.56 in 2009. This compression indicates a significant devaluation of sales, coinciding with a decline in share price from 64.50 to 22.05.
- Recovery and Expansion (2010–2015)
- A recovery phase began in 2010, as the P/S ratio climbed to 1.31 and maintained a general upward trajectory. This expansion culminated in a ratio of 2.50 by February 2015, signifying an increase in the premium the market assigned to the company's revenue.
- Recent Valuation Stabilization (2016–2018)
- In the final years of the period, the P/S ratio remained elevated compared to historical averages, fluctuating between 1.87 and 2.56. A peak was reached in 2017 at 2.56 before a slight correction to 2.35 in 2018.
- Revenue and Market Value Correlation
- While sales per share grew steadily from 29.07 in 2006 to 40.10 in 2018, the share price exhibited more aggressive growth, rising from 51.93 to 94.37. The fact that share price appreciation outpaced revenue growth per share is the primary driver behind the long-term increase in the P/S multiple.
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
Time Warner Inc., P/S, long-term trends, comparison to competitors
| Time Warner Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Feb 22, 2018 | 2.35 | 6.78 | 2.34 | 13.80 | 10.56 | 2.81 |
| Feb 23, 2017 | 2.56 | 6.14 | 2.22 | 13.70 | 6.95 | 2.81 |
| Feb 25, 2016 | 1.87 | 6.27 | 1.95 | 17.32 | 5.96 | 3.74 |
| Feb 26, 2015 | 2.50 | 5.44 | 2.19 | 17.51 | 4.88 | 3.12 |
| Feb 26, 2014 | 1.94 | 6.67 | 2.23 | 20.27 | 5.53 | 2.70 |
| Feb 22, 2013 | 1.72 | 4.95 | 1.69 | 13.92 | 2.55 | 2.04 |
| Feb 24, 2012 | 1.26 | 4.87 | 1.44 | — | 2.14 | 1.47 |
| Feb 18, 2011 | 1.55 | 6.85 | 1.85 | — | 5.75 | 1.83 |
| Feb 19, 2010 | 1.31 | 7.17 | 1.28 | — | 2.09 | 1.59 |
| Feb 20, 2009 | 0.56 | 5.17 | 1.08 | — | 1.54 | 0.92 |
| Feb 22, 2008 | 1.27 | 10.00 | 1.96 | — | 1.60 | 1.69 |
| Feb 23, 2007 | 1.86 | 13.15 | 3.31 | — | 1.54 | 1.99 |
| Feb 27, 2006 | 1.79 | 16.41 | 2.55 | — | 2.05 | 1.55 |
Based on: 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 (Media & Entertainment)
Time Warner Inc., P/S, long-term trends, comparison to sector (media & entertainment)
| Time Warner Inc. | Media & Entertainment | |
|---|---|---|
| Feb 22, 2018 | 2.35 | 5.91 |
| Feb 23, 2017 | 2.56 | 5.06 |
| Feb 25, 2016 | 1.87 | 5.13 |
| Feb 26, 2015 | 2.50 | 4.50 |
| Feb 26, 2014 | 1.94 | 4.67 |
| Feb 22, 2013 | 1.72 | 3.18 |
| Feb 24, 2012 | 1.26 | 2.41 |
| Feb 18, 2011 | 1.55 | 3.29 |
| Feb 19, 2010 | 1.31 | 2.84 |
| Feb 20, 2009 | 0.56 | 1.96 |
| Feb 22, 2008 | 1.27 | 3.43 |
| Feb 23, 2007 | 1.86 | 4.12 |
| Feb 27, 2006 | 1.79 | 3.41 |
Based on: 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 (Communication Services)
Time Warner Inc., P/S, long-term trends, comparison to industry (communication services)
| Time Warner Inc. | Communication Services | |
|---|---|---|
| Feb 22, 2018 | 2.35 | 3.59 |
| Feb 23, 2017 | 2.56 | 3.11 |
| Feb 25, 2016 | 1.87 | 3.03 |
| Feb 26, 2015 | 2.50 | 2.68 |
| Feb 26, 2014 | 1.94 | 2.72 |
| Feb 22, 2013 | 1.72 | 2.08 |
| Feb 24, 2012 | 1.26 | 1.65 |
| Feb 18, 2011 | 1.55 | 1.84 |
| Feb 19, 2010 | 1.31 | 1.54 |
| Feb 20, 2009 | 0.56 | 1.29 |
| Feb 22, 2008 | 1.27 | 2.05 |
| Feb 23, 2007 | 1.86 | 2.85 |
| Feb 27, 2006 | 1.79 | 2.32 |
Based on: 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).