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GuruFocus has detected 8 Warning Signs with BHP Billiton Ltd $BHP.
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BHP Billiton Ltd (NYSE:BHP)
Median PS Value
$35.28 (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. BHP Billiton Ltd's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was $11.595. BHP Billiton Ltd's 10-Year median P/S ratio is 2.93. Therefore, the Median P/S Value for today is $35.28.

As of today, BHP Billiton Ltd's share price is $36.51. BHP Billiton Ltd's median P/S value is $35.28. Therefore, BHP Billiton Ltd's Price to Median P/S Value Ratio for today is 1.03.

BHP' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0   Max: 1.25
Current: 1.03

0
1.25

During the past 13 years, the highest Price to Median P/S Value Ratio of BHP Billiton Ltd was 1.25. The lowest was 0.00. And the median was 0.94.

BHP's Price-to-Median-PS-Value is ranked lower than
99.99% of the 615 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 1.08 vs. BHP: 1.03 )

Definition

BHP Billiton Ltd'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
=11.595*2.93
=33.97

10-Year Median P/S Ratio is 2.93.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BHP Billiton Ltd's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was $11.595.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

BHP Billiton Ltd'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
=36.51/33.97
=1.07

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

BHP Billiton Ltd Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
medpsvalue 48.8763.2453.4656.2477.1878.5760.1163.3849.8934.55

BHP Billiton Ltd Semi-Annual Data

Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16Dec16
medpsvalue 78.570.0060.110.0063.380.0049.890.0034.550.00
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