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Clearfield Inc (NAS:CLFD)
Median P/S Value
$6.50 (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. Clearfield Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was $4.64. Clearfield Inc's 10-Year median P/S ratio is 1.40. Therefore, the Median P/S Value for today is $6.50.

As of today, Clearfield Inc's share price is $12.73. Clearfield Inc's median P/S value is $6.50. Therefore, Clearfield Inc's Price to Median P/S Value Ratio for today is 1.96.

CLFD' s 10-Year Price to Median P/S Value Range
Min: 0.35   Max: 489.58
Current: 1.96

0.35
489.58

During the past 13 years, the highest Price to Median P/S Value Ratio of Clearfield Inc was 489.58. The lowest was 0.35. And the median was 2.51.

CLFD's Price to Median P/S Value is ranked lower than
51% of the 697 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.16 vs. CLFD: 1.96 )

Definition

Clearfield 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
=4.64*1.40
=6.50

10-Year Median P/S Ratio is 1.40.
Clearfield Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was 1.42 (Sep. 2013 ) + 1.19 (Dec. 2013 ) + 0.97 (Mar. 2014 ) + 1.06 (Jun. 2014 ) = $4.64.

* 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.

Clearfield 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
=12.73/6.50
=1.96

* 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.

Clearfield Inc Annual Data

Mar05Mar06Mar07Sep07Sep08Sep09Sep10Sep11Sep12Sep13
medpsvalue 1.671.882.241.732.792.932.773.864.105.67

Clearfield Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
medpsvalue 4.074.164.104.214.564.805.676.226.446.50
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