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Esterline Technologies Corp (NYSE:ESL)
Median P/S Value
USD 76.98 (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. Esterline Technologies Corp's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was USD 67.522. Esterline Technologies Corp's 10-Year median P/S ratio is 1.14. Therefore, the Median P/S Value for today is USD 76.98.

As of today, Esterline Technologies Corp's share price is USD 88.80. Esterline Technologies Corp's median P/S value is USD 76.98. Therefore, Esterline Technologies Corp's Price to Median P/S Value Ratio for today is 1.15.

ESL' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.38   Max: 1.62
Current: 1.15

0.38
1.62

During the past 13 years, the highest Price to Median P/S Value Ratio of Esterline Technologies Corp was 1.62. The lowest was 0.38. And the median was 0.92.

ESL's Price to Median P/S Value is ranked lower than
54% of the 163 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.11 vs. ESL: 1.15 )

Definition

Esterline Technologies 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
=67.522*1.14
=76.98

10-Year Median P/S Ratio is 1.14.
Esterline Technologies Corp's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was 16.44 (Mar. 2016 ) + 17.469 (Jun. 2016 ) + 18.269 (Sep. 2016 ) + 15.344 (Dec. 2016 ) = USD 67.522.

* 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.

Esterline Technologies 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
=88.80/76.98
=1.15

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

Esterline Technologies Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Sep15Sep16
medpsvalue 52.8157.1353.7357.2162.8768.7467.9672.0964.9076.29

Esterline Technologies Corp Quarterly Data

Oct14Jan15Apr15Jul15Sep15Dec15Mar16Jun16Sep16Dec16
medpsvalue 72.0970.7270.8771.4664.9065.8966.5568.1676.2976.98
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