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Forest City Enterprises Inc (NYSE:FCE.A)
Median P/S Value
$15.77 (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. Forest City Enterprises Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was $5.03. Forest City Enterprises Inc's 10-Year median P/S ratio is 3.14. Therefore, the Median P/S Value for today is $15.77.

As of today, Forest City Enterprises Inc's share price is $19.50. Forest City Enterprises Inc's median P/S value is $15.77. Therefore, Forest City Enterprises Inc's Price to Median P/S Value Ratio for today is 1.24.

FCE.A' s 10-Year Price to Median P/S Value Range
Min: 0.15   Max: 2
Current: 1.24

0.15
2

During the past 13 years, the highest Price to Median P/S Value Ratio of Forest City Enterprises Inc was 2.00. The lowest was 0.15. And the median was 0.76.

FCE.A's Price to Median P/S Value is ranked higher than
66% of the 1570 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.13 vs. FCE.A: 1.24 )

Definition

Forest City Enterprises 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
=5.03*3.14
=15.79

10-Year Median P/S Ratio is 3.14.
Forest City Enterprises Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was 1.5 (Jul. 2013 ) + 1.13 (Oct. 2013 ) + 1.24 (Mar. 2014 ) + 1.16 (Jun. 2014 ) = $5.03.

* 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.

Forest City Enterprises 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
=19.50/15.79
=1.23

* 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.

Forest City Enterprises Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
medpsvalue 23.5127.5634.0833.4838.8439.1628.5920.4419.0018.40

Forest City Enterprises Inc Quarterly Data

Apr12Jul12Oct12Jan13Mar13Apr13Jul13Oct13Mar14Jun14
medpsvalue 18.0617.9918.3418.4018.9418.7518.4317.1516.4315.77
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