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ConAgra Foods Inc (NYSE:CAG)
Median P/S Value
$34.87 (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 Foods Inc's revenue per share for the trailing twelve months (TTM) ended in Nov. 2014 was $39.18. ConAgra Foods Inc's 10-Year median P/S ratio is 0.89. Therefore, the Median P/S Value for today is $34.87.

As of today, ConAgra Foods Inc's share price is $36.86. ConAgra Foods Inc's median P/S value is $34.87. Therefore, ConAgra Foods Inc's Price to Median P/S Value Ratio for today is 1.10.

CAG' s 10-Year Price to Median P/S Value Range
Min: 0.34   Max: 1.54
Current: 1.1

0.34
1.54

During the past 13 years, the highest Price to Median P/S Value Ratio of ConAgra Foods Inc was 1.54. The lowest was 0.34. And the median was 0.87.

CAG's Price to Median P/S Value is ranked higher than
73% of the 1817 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.15 vs. CAG: 1.10 )

Definition

ConAgra Foods 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
=39.18*0.89
=34.87

10-Year Median P/S Ratio is 0.89.
ConAgra Foods Inc's revenue per share for the trailing twelve months (TTM) ended in Nov. 2014 was 10.42 (Feb. 2014 ) + 10.51 (May. 2014 ) + 8.62 (Aug. 2014 ) + 9.63 (Nov. 2014 ) = $39.18.

* 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.

ConAgra Foods 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
=36.86/34.87
=1.06

* 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.

ConAgra Foods Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
medpsvalue 23.6217.6118.5319.3624.9524.0425.2328.2333.0137.18

ConAgra Foods Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
medpsvalue 28.8429.6830.7433.0134.5936.3437.4137.1836.1334.87
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