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Bank of Montreal (NYSE:BMO)
Median P/S Value
\$65.82 (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. Bank of Montreal's revenue per share for the trailing twelve months (TTM) ended in Jul. 2016 was \$24.296. Bank of Montreal's 10-Year median P/S ratio is 2.66. Therefore, the Median P/S Value for today is \$65.82.

As of today, Bank of Montreal's share price is \$66.81. Bank of Montreal's median P/S value is \$65.82. Therefore, Bank of Montreal's Price to Median P/S Value Ratio for today is 1.01.

BMO' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.59   Max: 1.38
Current: 1.01

0.59
1.38

During the past 13 years, the highest Price to Median P/S Value Ratio of Bank of Montreal was 1.38. The lowest was 0.59. And the median was 0.94.

BMO's Price to Median P/S Value is ranked higher than
54% of the 1505 Companies
in the Global Banks - Global industry.

( Industry Median: 1.03 vs. BMO: 1.01 )

Definition

Bank of Montreal'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 = 24.296 * 2.66 = 64.63

10-Year Median P/S Ratio is 2.66.
Bank of Montreal's revenue per share for the trailing twelve months (TTM) ended in Jul. 2016 was 5.889 (Oct. 2015 ) + 5.538 (Jan. 2016 ) + 6.167 (Apr. 2016 ) + 6.702 (Jul. 2016 ) = \$24.296.

* 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.

Bank of Montreal'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 = 66.81 / 64.63 = 1.03

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

Related Terms

Historical Data

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

Bank of Montreal Annual Data

 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 medpsvalue 47.39 47.17 52.69 48.91 0.00 64.58 68.53 66.68 67.56 0.00

Bank of Montreal Quarterly Data

 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 medpsvalue 67.81 68.14 67.56 67.95 66.63 0.00 0.00 0.00 0.00 0.00
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