Despite Steady Gains, Procter & Gamble Stock Has Underperformed The S&P 500 Since 2018

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Procter & Gamble (NYSE:PG) The stock price jumped 60% from about $91 at the end of 2018 to currently $147, primarily due to a favorable turnaround in its revenue and P/S multiple. Additionally, the company saw a steady increase in its revenue per share, helped by an increase in the outstanding share count. However, despite the stock’s gains, PG has outperformed the S&P, returning nearly 70% over the same period.

In our interactive dashboard, Why Procter & Gamble Stock Moved: PG stock is up 60% since 2018We break down the factors behind this move.

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PG’s total revenue grew 19% from $66.8 billion in fiscal 2018 to $76.1 billion currently

  • PG’s total revenue grew from $66.8 billion in FY18 to $76.1 billion in FY21 (PG’s fiscal year ended June), and is currently at $79.6 billion on an LTM basis.
  • As of fiscal 2011, PG’s largest segment is fabric and home care, contributing $26 billion in total sales, accounting for approximately 35% of the company’s revenue.
  • In addition, the health care segment has been the fastest growing segment, with more than 20% growth in sales between FY ’19 and FY ’21 to nearly $10 billion by FY ’21.
  • For details about PG revenue and peer comparison, see Procter & Gamble Revenue Comparison

Revenue per share grew 26% from $25.70 in fiscal 2018 to $32.51 currently

  • PG revenue increased from $66.8 billion in 2018 to $79.6 billion currently, while outstanding share count decreased from 2.6 billion in 2018 to 2.4 billion currently.
  • Due to this, the RPS has steadily increased from $25.70 in FY18 to $32.51 at present.

The price-to-sales (P/S) multiple for PG rose from 3.3x in 2018 to 5.2x by the end of 2021, but is currently back at 4.5x, still around 1.4x from 2018 levels Is.

  • Due to rising investor expectations around continued demand growth for its products across all markets, PG’s P/S multiple rose to nearly 5.2x by the end of 2021, driving the company’s sales growth.
  • However, due to increasing economic uncertainty on the broader markets, the P/S multiplier has pulled back, which currently stands at around 4.5x.
  • For additional information about the company’s stock returns and peer comparison, see Procter & Gamble Stock Return Comparison,

With stock prices falling sharply across sectors, we are headed for 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 crash comparison,

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