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Capital Southwest Corp (NAS:CSWC)
Median P/S Value
$11.04 (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. Capital Southwest Corp's revenue per share for the trailing twelve months (TTM) ended in Mar. 2016 was $0.585. Capital Southwest Corp's 10-Year median P/S ratio is 18.87. Therefore, the Median P/S Value for today is $11.04.

As of today, Capital Southwest Corp's share price is $14.06. Capital Southwest Corp's median P/S value is $11.04. Therefore, Capital Southwest Corp's Price to Median P/S Value Ratio for today is 1.28.

CSWC' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.07   Max: 33.47
Current: 1.28

0.07
33.47

During the past 13 years, the highest Price to Median P/S Value Ratio of Capital Southwest Corp was 33.47. The lowest was 0.07. And the median was 0.93.

CSWC's Price to Median P/S Value is ranked lower than
69% of the 896 Companies
in the Global Asset Management industry.

( Industry Median: 1.00 vs. CSWC: 1.28 )

Definition

Capital Southwest Corp'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
=0.585*18.87
=11.04

10-Year Median P/S Ratio is 18.87.
Capital Southwest Corp's revenue per share for the trailing twelve months (TTM) ended in Mar. 2016 was 0.062 (Jun. 2015 ) + 0.069 (Sep. 2015 ) + 0.212 (Dec. 2015 ) + 0.242 (Mar. 2016 ) = $0.585.

* 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.

Capital Southwest Corp'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
=14.06/11.04
=1.27

* 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.

Capital Southwest Corp Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
medpsvalue 7.918.2517.576.199.0811.7413.4715.5912.1011.04

Capital Southwest Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
medpsvalue 14.1715.5915.2515.0214.0412.1012.3012.627.2611.04
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