Procter & Gamble (NYSE: PG) stock price jumped 60% from around $91 at 2018 end to $147 currently, primarily due to favorable changes in its revenues and P/S multiple. Additionally, the company witnessed a steady rise in its revenue per share, helped by a rise in the outstanding share count. However, despite the stock’s gains, PG has underperformed the S&P, which returned almost 70% over the same period.
In our interactive dashboard, Why Procter & Gamble Stock Moved: PG Stock Has Gained 60% Since 2018, we break down the factors behind this move.
PG’s Total Revenue has risen 19% from $66.8 billion in FY 2018 to $76.1 billion currently
- PG’s total revenue has risen steadily from $66.8 billion in FY ’18 to $76.1 billion in FY ’21 (PG’s fiscal year ends in June), and currently stands at $79.6 billion on an LTM basis.
- As of FY ’21, PG’s largest segment is Fabric & Home Care, contributing $26 billion to total sales, bringing in almost 35% of the company’s revenues.
- Besides this, the health care segment has been the fastest growing segment, with sales rising over 20% between FY ’19 and FY ’21, standing at almost $10 billion as of FY ’21.
- For details about PG revenues and comparison to peers, see Procter & Gamble Revenue Comparison
Revenue per share increased 26% from $25.70 in FY 2018 to $32.51 currently
- PG revenue rose from $66.8 billion in 2018 to $79.6 billion currently, while the outstanding share count dropped from 2.6 billion in 2018 to 2.4 billion currently.
- Due to this, RPS has risen steadily from $25.70 in FY ’18 to $32.51 currently.
Recommended For You
Price-To-Sales (P/S) multiple for PG rose strongly from 3.3x in 2018 to 5.2x by 2021 end but has pulled back to 4.5x currently, still almost 1.4x higher than its 2018 level
- PG’s P/S multiple rose strongly to around 5.2x by late 2021, on the back of rising investor expectations surrounding continued demand growth for its products across all markets, leading to a rise in the company’s sales.
- However, due to the increased economic uncertainty weighing on the broader markets, the P/S multiple has pulled back, currently standing at around 4.5x.
- For additional details about the company stock returns and comparison to peers, see Procter & Gamble Stock Return Comparison.
With stock prices falling precipitously across sectors, we may be heading toward a bear market for the first time since March 2020, when the Covid-19 outbreak triggered a market crash. We capture key trends in the Dow during and after major market crashes in our interactive dashboard analysis, ‘Market Crashes Compared.’
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates