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Brinker International Inc (NYSE:EAT)
Median P/S Value
$36.68 (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. Brinker International Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was $42.65. Brinker International Inc's 10-Year median P/S ratio is 0.86. Therefore, the Median P/S Value for today is $36.68.

As of today, Brinker International Inc's share price is $51.79. Brinker International Inc's median P/S value is $36.68. Therefore, Brinker International Inc's Price to Median P/S Value Ratio for today is 1.42.

EAT' s 10-Year Price to Median P/S Value Range
Min: 0.56   Max: 1.39
Current: 1.42

0.56
1.39

During the past 13 years, the highest Price to Median P/S Value Ratio of Brinker International Inc was 1.39. The lowest was 0.56. And the median was 1.08.

EAT's Price to Median P/S Value is ranked higher than
58% of the 337 Companies
in the Global Restaurants industry.

( Industry Median: 1.27 vs. EAT: 1.42 )

Definition

Brinker International 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
=42.65*0.86
=36.68

10-Year Median P/S Ratio is 0.86.
Brinker International Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was 9.94 (Sep. 2013 ) + 10.26 (Dec. 2013 ) + 11.1 (Mar. 2014 ) + 11.35 (Jun. 2014 ) = $42.65.

* 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.

Brinker International 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
=51.79/36.68
=1.41

* 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.

Brinker International Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
medpsvalue 22.6027.2830.6233.5028.8923.8625.8830.1333.0536.68

Brinker International Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
medpsvalue 29.2530.1330.9331.6932.4033.0533.9234.8035.6436.68
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