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Magellan Midstream Partners LP (NYSE:MMP)
Median P/S Value
$37.78 (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. Magellan Midstream Partners LP's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was $9.492. Magellan Midstream Partners LP's 10-Year median P/S ratio is 3.98. Therefore, the Median P/S Value for today is $37.78.

As of today, Magellan Midstream Partners LP's share price is $69.21. Magellan Midstream Partners LP's median P/S value is $37.78. Therefore, Magellan Midstream Partners LP's Price to Median P/S Value Ratio for today is 1.83.

MMP' s Price to Median P/S Value Range Over the Past 10 Years
Min: 0.2   Max: 2.19
Current: 1.83

0.2
2.19

During the past 13 years, the highest Price to Median P/S Value Ratio of Magellan Midstream Partners LP was 2.19. The lowest was 0.20. And the median was 0.62.

MMP's Price to Median P/S Value is ranked lower than
96% of the 112 Companies
in the Global Oil & Gas Midstream industry.

( Industry Median: 0.99 vs. MMP: 1.83 )

Definition

Magellan Midstream Partners LP'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
=9.492*3.98
=37.78

10-Year Median P/S Ratio is 3.98.
Magellan Midstream Partners LP's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was 2.515 (Dec. 2015 ) + 2.281 (Mar. 2016 ) + 2.276 (Jun. 2016 ) + 2.42 (Sep. 2016 ) = $9.492.

* 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.

Magellan Midstream Partners LP'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
=69.21/37.78
=1.83

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Magellan Midstream Partners LP Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
medpsvalue 36.5840.1537.3132.8928.5030.8331.1534.1641.2938.25

Magellan Midstream Partners LP Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
medpsvalue 38.3139.6441.2939.7339.7640.8938.2538.0538.3937.78
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