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Finisar Corp (NAS:FNSR)
Median P/S Value
\$19.09 (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. Finisar Corp's revenue per share for the trailing twelve months (TTM) ended in Jul. 2016 was \$11.856. Finisar Corp's 10-Year median P/S ratio is 1.61. Therefore, the Median P/S Value for today is \$19.09.

As of today, Finisar Corp's share price is \$32.24. Finisar Corp's median P/S value is \$19.09. Therefore, Finisar Corp's Price to Median P/S Value Ratio for today is 1.69.

FNSR' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.22   Max: 43.17
Current: 1.69

0.22
43.17

During the past 13 years, the highest Price to Median P/S Value Ratio of Finisar Corp was 43.17. The lowest was 0.22. And the median was 1.01.

FNSR's Price to Median P/S Value is ranked lower than
77% of the 468 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.10 vs. FNSR: 1.69 )

Definition

Finisar 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 = 11.856 * 1.61 = 19.09

10-Year Median P/S Ratio is 1.61.
Finisar Corp's revenue per share for the trailing twelve months (TTM) ended in Jul. 2016 was 2.988 (Oct. 2015 ) + 2.86 (Jan. 2016 ) + 2.928 (Apr. 2016 ) + 3.08 (Jul. 2016 ) = \$11.856.

* 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.

Finisar 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 = 32.24 / 19.09 = 1.69

* 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.

Finisar Corp Annual Data

 Apr07 Apr08 Apr09 Apr10 Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 medpsvalue 17.07 18.37 16.85 15.80 16.78 16.34 16.14 18.02 19.52 18.81

Finisar Corp Quarterly Data

 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 medpsvalue 18.02 18.94 19.22 19.34 19.52 19.04 19.05 19.00 18.81 19.09
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