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Fifth Street Finance Corp (NAS:FSC)
Median P/S Value
$7.17 (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. Fifth Street Finance Corp's revenue per share for the trailing twelve months (TTM) ended in Mar. 2016 was $1.193. Fifth Street Finance Corp's 10-Year median P/S ratio is 6.01. Therefore, the Median P/S Value for today is $7.17.

As of today, Fifth Street Finance Corp's share price is $4.75. Fifth Street Finance Corp's median P/S value is $7.17. Therefore, Fifth Street Finance Corp's Price to Median P/S Value Ratio for today is 0.68.

FSC' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.7   Max: 1.8
Current: 0.68

0.7
1.8

During the past 8 years, the highest Price to Median P/S Value Ratio of Fifth Street Finance Corp was 1.80. The lowest was 0.70. And the median was 0.98.

FSC's Price to Median P/S Value is ranked higher than
75% of the 293 Companies
in the Global Credit Services industry.

( Industry Median: 0.91 vs. FSC: 0.68 )

Definition

Fifth Street Finance 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
=1.193*6.01
=7.17

10-Year Median P/S Ratio is 6.01.
Fifth Street Finance Corp's revenue per share for the trailing twelve months (TTM) ended in Mar. 2016 was 0.348 (Jun. 2015 ) + 0.231 (Sep. 2015 ) + 0.323 (Dec. 2015 ) + 0.291 (Mar. 2016 ) = $1.193.

* 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.

Fifth Street Finance 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
=4.75/7.17
=0.66

* 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.

Fifth Street Finance Corp Annual Data

Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
medpsvalue 0.000.0013.876.086.9610.169.849.859.837.79

Fifth Street Finance Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
medpsvalue 9.699.649.749.839.709.268.927.797.417.17
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