Switch to:
Abercrombie & Fitch Co (NYSE:ANF)
Median P/S Value
$69.54 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Abercrombie & Fitch Co's revenue per share for the trailing twelve months (TTM) ended in Oct. 2014 was $51.51. Abercrombie & Fitch Co's 10-Year median P/S ratio is 1.35. Therefore, the Median P/S Value for today is $69.54.

As of today, Abercrombie & Fitch Co's share price is $27.72. Abercrombie & Fitch Co's median P/S value is $69.54. Therefore, Abercrombie & Fitch Co's Price to Median P/S Value Ratio for today is 0.40.

ANF' s 10-Year Price to Median P/S Value Range
Min: 0.34   Max: 4.39
Current: 0.4

0.34
4.39

During the past 13 years, the highest Price to Median P/S Value Ratio of Abercrombie & Fitch Co was 4.39. The lowest was 0.34. And the median was 1.30.

ANF's Price to Median P/S Value is ranked higher than
96% of the 1357 Companies
in the Global Apparel Stores industry.

( Industry Median: 1.08 vs. ANF: 0.40 )

Definition

Abercrombie & Fitch Co's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=51.51*1.35
=69.54

10-Year Median P/S Ratio is 1.35.
Abercrombie & Fitch Co's revenue per share for the trailing twelve months (TTM) ended in Oct. 2014 was 15.75 (Jan. 2014 ) + 11.04 (Apr. 2014 ) + 12.08 (Jul. 2014 ) + 12.64 (Oct. 2014 ) = $51.51.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company’s value.

Abercrombie & Fitch Co's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=27.72/69.54
=0.40

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number, GAVA


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Abercrombie & Fitch Co Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
medpsvalue 28.8641.0448.6455.4352.7043.9252.2762.8473.8370.07

Abercrombie & Fitch Co Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
medpsvalue 66.7469.6973.8373.5974.3073.4170.0770.5170.7169.54
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK