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GuruFocus has detected 3 Warning Signs with Bowl America Inc $BWL.A.
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Bowl America Inc (AMEX:BWL.A)
Median PS Value
$12.56 (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. Bowl America Inc's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was $4.741. Bowl America Inc's 10-Year median P/S ratio is 2.65. Therefore, the Median P/S Value for today is $12.56.

As of today, Bowl America Inc's share price is $14.41. Bowl America Inc's median P/S value is $12.56. Therefore, Bowl America Inc's Price to Median P/S Value Ratio for today is 1.15.

BWL.A' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.34   Max: 1.32
Current: 1.15

0.34
1.32

During the past 13 years, the highest Price to Median P/S Value Ratio of Bowl America Inc was 1.32. The lowest was 0.34. And the median was 0.87.

BWL.A's Price-to-Median-PS-Value is ranked lower than
58% of the 666 Companies
in the Global Leisure industry.

( Industry Median: 1.09 vs. BWL.A: 1.15 )

Definition

Bowl America 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
=4.741*2.65
=12.56

10-Year Median P/S Ratio is 2.65.
Bowl America Inc's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.438 (Mar. 2016 ) + 1.114 (Jun. 2016 ) + 0.981 (Sep. 2016 ) + 1.208 (Dec. 2016 ) = $4.741.

* 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.

Bowl America 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
=14.41/12.56
=1.15

* 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.

Bowl America Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
medpsvalue 16.4915.7215.3713.9813.6612.5212.2711.7011.8712.37

Bowl America Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
medpsvalue 11.6411.6411.7411.8712.0212.0411.9912.3712.4512.56
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