General Motors Co. (NYSE:GM)

The price-to-sales (P/S) ratio for the period examined exhibits fluctuations, generally remaining below 0.5 for the majority of the analyzed timeframe, with a notable increase towards the end. Initial values indicate a P/S ratio of 0.38, followed by a decline to 0.25 before exhibiting some volatility. The latter portion of the period shows a more pronounced upward trend, culminating in a ratio of 0.46.

Initial Period (2011-2016)

From 2011 to 2016, the P/S ratio generally decreased, starting at 0.38 and reaching a low of 0.25 in 2013. A slight recovery occurred in 2014 and 2015, but the ratio subsequently decreased again in 2016 to 0.31. This period suggests a relative undervaluation based on sales, or potentially investor skepticism regarding the sustainability of sales figures.

Mid-Period (2017-2020)

Between 2017 and 2020, the P/S ratio demonstrated more variability, ranging from 0.34 to 0.44. While there were increases, the ratio did not sustain significant upward momentum. The ratio peaked at 0.44 in 2018, then decreased to 0.41 in 2019 and 0.41 in 2020, indicating a period of relative stability with minor fluctuations.

Recent Period (2021-2026)

The period from 2021 onwards shows a more distinct trend. The P/S ratio increased significantly to 0.73 in 2021, before decreasing slightly to 0.68 in 2022. It then decreased to 0.38 in 2023, followed by a substantial increase to 0.28 in 2024, and then a further increase to 0.29 in 2025, culminating in 0.46 in 2026. This suggests a growing investor confidence in the company’s ability to generate sales relative to its market capitalization, or potentially a shift in market sentiment.

Share Price and Sales per Share Relationship

The observed P/S ratio movements correlate with changes in both share price and sales per share. The increase in the P/S ratio from 2020 to 2026 appears to be driven by a combination of increasing share price and, more significantly, increasing sales per share. The substantial increase in sales per share in 2024, 2025, and 2026 is a key factor in the rising P/S ratio.

Overall, the P/S ratio demonstrates a long-term trend of relative stability with a recent acceleration in growth. The fluctuations suggest sensitivity to market conditions and company performance, particularly regarding sales generation. The recent increase warrants further investigation to determine its sustainability and underlying drivers.