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Colony Financial Inc (NYSE:CLNY)
Median P/S Value
$21.83 (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. Colony Financial Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2014 was $2.73. Colony Financial Inc's 10-Year median P/S ratio is 8.00. Therefore, the Median P/S Value for today is $21.83.

As of today, Colony Financial Inc's share price is $24.32. Colony Financial Inc's median P/S value is $21.83. Therefore, Colony Financial Inc's Price to Median P/S Value Ratio for today is 1.12.

CLNY' s 10-Year Price to Median P/S Value Range
Min: 0.69   Max: 3.15
Current: 1.12

0.69
3.15

During the past 4 years, the highest Price to Median P/S Value Ratio of Colony Financial Inc was 3.15. The lowest was 0.69. And the median was 1.01.

CLNY's Price to Median P/S Value is ranked higher than
75% of the 913 Companies
in the Global REIT - Diversified industry.

( Industry Median: 1.23 vs. CLNY: 1.12 )

Definition

Colony Financial 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
=2.73*8.00
=21.84

10-Year Median P/S Ratio is 8.00.
Colony Financial Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.76 (Dec. 2013 ) + 0.73 (Mar. 2014 ) + 0.6 (Jun. 2014 ) + 0.64 (Sep. 2014 ) = $2.73.

* 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.

Colony Financial 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
=24.32/21.84
=1.11

* 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.

Colony Financial Inc Annual Data

Dec10Dec11Dec12Dec13
medpsvalue 0.000.000.000.000.000.0014.5518.3123.8320.07

Colony Financial Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
medpsvalue 21.5922.6323.8322.7921.1119.9120.0721.5921.8321.83
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