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AeroVironment Inc (NAS:AVAV)
Median P/S Value
$25.17 (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. AeroVironment Inc's revenue per share for the trailing twelve months (TTM) ended in Jul. 2014 was $11.39. AeroVironment Inc's 10-Year median P/S ratio is 2.21. Therefore, the Median P/S Value for today is $25.17.

As of today, AeroVironment Inc's share price is $28.85. AeroVironment Inc's median P/S value is $25.17. Therefore, AeroVironment Inc's Price to Median P/S Value Ratio for today is 1.13.

AVAV' s 10-Year Price to Median P/S Value Range
Min: 0.43   Max: 1.55
Current: 1.13

0.43
1.55

During the past 12 years, the highest Price to Median P/S Value Ratio of AeroVironment Inc was 1.55. The lowest was 0.43. And the median was 1.00.

AVAV's Price to Median P/S Value is ranked higher than
80% of the 293 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.15 vs. AVAV: 1.13 )

Definition

AeroVironment Inc'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
=11.39*2.21
=25.17

10-Year Median P/S Ratio is 2.21.
AeroVironment Inc's revenue per share for the trailing twelve months (TTM) ended in Jul. 2014 was 2.86 (Oct. 2013 ) + 3.02 (Jan. 2014 ) + 3.24 (Apr. 2014 ) + 2.27 (Jul. 2014 ) = $11.39.

* 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.

AeroVironment Inc'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
=28.85/25.17
=1.15

* 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.

AeroVironment Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
medpsvalue 89.75110.3549.6122.3225.2625.1929.3332.1623.8224.53

AeroVironment Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
medpsvalue 32.1631.9131.8729.3923.8222.2820.6622.7024.5325.17
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