Switch to:
KKR Financial Holdings LLC (NYSE:KFN)
Median P/S Value
$8.80 (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. KKR Financial Holdings LLC's revenue per share for the trailing twelve months (TTM) ended in Dec. 2013 was $2.11. KKR Financial Holdings LLC's 10-Year median P/S ratio is 4.17. Therefore, the Median P/S Value for today is $8.80.

As of today, KKR Financial Holdings LLC's share price is $11.54. KKR Financial Holdings LLC's median P/S value is $8.80. Therefore, KKR Financial Holdings LLC's Price to Median P/S Value Ratio for today is 1.32.

KFN' s 10-Year Price to Median P/S Value Range
Min: 0.15   Max: 2.79
Current: 1.32

0.15
2.79

During the past 10 years, the highest Price to Median P/S Value Ratio of KKR Financial Holdings LLC was 2.79. The lowest was 0.15. And the median was 0.97.

KFN's Price to Median P/S Value is ranked higher than
61% of the 1834 Companies
in the Global Specialty Finance industry.

( Industry Median: 1.13 vs. KFN: 1.32 )

Definition

KKR Financial Holdings LLC'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
=2.11*4.17
=8.80

10-Year Median P/S Ratio is 4.17.
KKR Financial Holdings LLC's revenue per share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.73 (Mar. 2013 ) + 0.54 (Jun. 2013 ) + 0.33 (Sep. 2013 ) + 0.51 (Dec. 2013 ) = $2.11.

* 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.

KKR Financial Holdings LLC'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
=11.54/8.80
=1.31

* 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.

KKR Financial Holdings LLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
medpsvalue 0.008.5912.4315.3010.475.0912.9311.5510.848.80

KKR Financial Holdings LLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
medpsvalue 11.5512.139.9712.3010.8410.139.977.638.800.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK