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Median P/S Value
\$5.04 (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. Digirad Corp's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was \$5.539. Digirad Corp's 10-Year median P/S ratio is 0.91. Therefore, the Median P/S Value for today is \$5.04.

As of today, Digirad Corp's share price is \$4.60. Digirad Corp's median P/S value is \$5.04. Therefore, Digirad Corp's Price to Median P/S Value Ratio for today is 0.91.

DRAD' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.02   Max: 2.09
Current: 0.91

0.02
2.09

During the past 13 years, the highest Price to Median P/S Value Ratio of Digirad Corp was 2.09. The lowest was 0.02. And the median was 1.02.

DRAD's Price to Median P/S Value is ranked higher than
58% of the 318 Companies
in the Global Medical Devices industry.

( Industry Median: 1.00 vs. DRAD: 0.91 )

Definition

Digirad 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 = 5.539 * 0.91 = 5.04

10-Year Median P/S Ratio is 0.91.
Digirad Corp's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.791 (Dec. 2015 ) + 1.562 (Mar. 2016 ) + 1.601 (Jun. 2016 ) + 1.585 (Sep. 2016 ) = \$5.539.

* 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.

Digirad 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 = 4.60 / 5.04 = 0.91

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.