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Conagra Brands Inc (NYSE:CAG)
Median P/S Value
$18.33 (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. Conagra Brands Inc's revenue per share for the trailing twelve months (TTM) ended in May. 2016 was $26.575. Conagra Brands Inc's 10-Year median P/S ratio is 0.70. Therefore, the Median P/S Value for today is $18.33.

As of today, Conagra Brands Inc's share price is $36.89. Conagra Brands Inc's median P/S value is $18.33. Therefore, Conagra Brands Inc's Price to Median P/S Value Ratio for today is 2.01.

CAG' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.35   Max: 1.98
Current: 2.01

0.35
1.98

During the past 13 years, the highest Price to Median P/S Value Ratio of Conagra Brands Inc was 1.98. The lowest was 0.35. And the median was 0.91.

CAG's Price to Median P/S Value is ranked lower than
87% of the 1853 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.10 vs. CAG: 2.01 )

Definition

Conagra Brands 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
=26.575*0.70
=18.60

10-Year Median P/S Ratio is 0.70.
Conagra Brands Inc's revenue per share for the trailing twelve months (TTM) ended in May. 2016 was 6.412 (Aug. 2015 ) + 7.063 (Nov. 2015 ) + 6.652 (Feb. 2016 ) + 6.448 (May. 2016 ) = $26.575.

* 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.

Conagra Brands 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
=36.89/18.60
=1.98

* 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.

Conagra Brands Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
medpsvalue 14.5015.2019.5518.9219.6422.1726.1329.0525.7218.60

Conagra Brands Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
medpsvalue 29.0528.2227.2326.3225.7224.1722.3720.7518.6018.33
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