Again we will use WalMart (NYSE:WMT) charts to explain the valuation charts.
If you load the 10-year valuation page of WalMart, you will see the 10-year valuation chart like below.
This chart displays the price history of WalMart relative to its historical valuation bands. Valuation bands displayed:
1. P/E band
2. P/S Band
3. P/B Band
The bands are drawn based on historical low and high values of the valuations ratios. In the case of WMT, if the 10-year historical low P/E is 10.8, and the 10-year historical high is 42.2, we draw two lines. One for P/E=10.8, the other for P/E=42.2. Because earnings have been growing for WMT, the lines move up vs. time.
Similar bands are drawn for P/S and P/B. The earnings, sales and book value are trailing-twelve-month data.
Each item in the legend of the charts is clickable. Clicking them will hide and display the corresponding lines in the chart. For instance, if we click on the legends of P/S and P/B, the chart becomes below:
Now we can clearly see that the valuation of WalMart is now at its lowest level in 10 years in terms of P/E ratios. For instance:
Similar displays for P/S and P/B bands can be obtained for simply clicking on the legends. Indeed, WalMart is at its lowest level in 10 years if valued with P/B and P/S ratios.
In addition, the valuation page shows the historical P/E, P/S, P/B, P/FCF and Yield ratios of the stock and its closest competitors. In the case of WalMart, we show the valuation of Costco (COST) and Target (TGT). The screen shots of the charts are below:
Again, the legends of the charts are clickable. All charts work for both browsers that support Flash and those that do not, such as the iPad and iPhone.
The valuation charts are for Premium Members only. If you are not a Premium Member, you are invited for a 7-day Free Trial.