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Entropic Communications Inc (NAS:ENTR)
Median P/S Value
$3.41 (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. Entropic Communications Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2014 was $2.29. Entropic Communications Inc's 10-Year median P/S ratio is 1.49. Therefore, the Median P/S Value for today is $3.41.

As of today, Entropic Communications Inc's share price is $2.30. Entropic Communications Inc's median P/S value is $3.41. Therefore, Entropic Communications Inc's Price to Median P/S Value Ratio for today is 0.67.

ENTR' s 10-Year Price to Median P/S Value Range
Min: 0.15   Max: 3.07
Current: 0.67

0.15
3.07

During the past 11 years, the highest Price to Median P/S Value Ratio of Entropic Communications Inc was 3.07. The lowest was 0.15. And the median was 1.02.

ENTR's Price to Median P/S Value is ranked higher than
92% of the 1164 Companies
in the Global Semiconductors industry.

( Industry Median: 1.09 vs. ENTR: 0.67 )

Definition

Entropic Communications 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
=2.29*1.49
=3.41

10-Year Median P/S Ratio is 1.49.
Entropic Communications Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.63 (Dec. 2013 ) + 0.62 (Mar. 2014 ) + 0.56 (Jun. 2014 ) + 0.48 (Sep. 2014 ) = $2.29.

* 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.

Entropic Communications 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
=2.30/3.41
=0.67

* 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.

Entropic Communications Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
medpsvalue 0.001.6714.1715.513.232.473.934.025.304.26

Entropic Communications Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
medpsvalue 4.174.785.305.565.334.784.263.953.623.41
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