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GuruFocus has detected 1 Warning Sign with Monster Beverage Corp $MNST.
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Monster Beverage Corp (NAS:MNST)
Median PS Value
$26.26 (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. Monster Beverage Corp's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was $5.05. Monster Beverage Corp's 10-Year median P/S ratio is 5.20. Therefore, the Median P/S Value for today is $26.26.

As of today, Monster Beverage Corp's share price is $45.11. Monster Beverage Corp's median P/S value is $26.26. Therefore, Monster Beverage Corp's Price to Median P/S Value Ratio for today is 1.72.

MNST' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.03   Max: 5
Current: 1.72

0.03
5

During the past 13 years, the highest Price to Median P/S Value Ratio of Monster Beverage Corp was 5.00. The lowest was 0.03. And the median was 0.61.

MNST's Price-to-Median-PS-Value is ranked lower than
86% of the 84 Companies
in the Global Beverages - Soft Drinks industry.

( Industry Median: 1.13 vs. MNST: 1.72 )

Definition

Monster Beverage 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
=5.05*5.20
=26.26

10-Year Median P/S Ratio is 5.20.
Monster Beverage Corp's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.096 (Mar. 2016 ) + 1.346 (Jun. 2016 ) + 1.351 (Sep. 2016 ) + 1.257 (Dec. 2016 ) = $5.05.

* 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.

Monster Beverage 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
=45.11/26.26
=1.72

* 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.

Monster Beverage Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
medpsvalue 7.959.1610.4312.1615.7919.3322.4624.5424.9926.26

Monster Beverage Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
medpsvalue 23.9324.5425.4425.2325.2024.9924.4424.8125.5326.26
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