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International Game Technology (NYSE:IGT)
Median P/S Value
$23.80 (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. International Game Technology's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was $8.47. International Game Technology's 10-Year median P/S ratio is 2.81. Therefore, the Median P/S Value for today is $23.80.

As of today, International Game Technology's share price is $16.83. International Game Technology's median P/S value is $23.80. Therefore, International Game Technology's Price to Median P/S Value Ratio for today is 0.71.

IGT' s 10-Year Price to Median P/S Value Range
Min: 0.42   Max: 2.57
Current: 0.71

0.42
2.57

During the past 13 years, the highest Price to Median P/S Value Ratio of International Game Technology was 2.57. The lowest was 0.42. And the median was 1.08.

IGT's Price to Median P/S Value is ranked higher than
91% of the 1618 Companies
in the Global Electronic Gaming & Multimedia industry.

( Industry Median: 1.10 vs. IGT: 0.71 )

Definition

International Game Technology'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
=8.47*2.81
=23.80

10-Year Median P/S Ratio is 2.81.
International Game Technology's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was 2.4 (Sep. 2013 ) + 2.12 (Dec. 2013 ) + 2.06 (Mar. 2014 ) + 1.89 (Jun. 2014 ) = $8.47.

* 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.

International Game Technology'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
=16.83/23.80
=0.71

* 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.

International Game Technology Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
medpsvalue 18.5518.0419.8421.9522.6219.4518.4318.3520.9624.84

International Game Technology Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
medpsvalue 18.9419.4520.9622.3423.5824.6724.8425.2324.6723.80
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