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Insight Enterprises Inc (NAS:NSIT)
Median P/S Value
$21.42 (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. Insight Enterprises Inc's revenue per share for the trailing twelve months (TTM) ended in Dec. 2013 was $119. Insight Enterprises Inc's 10-Year median P/S ratio is 0.18. Therefore, the Median P/S Value for today is $21.42.

As of today, Insight Enterprises Inc's share price is $26.80. Insight Enterprises Inc's median P/S value is $21.42. Therefore, Insight Enterprises Inc's Price to Median P/S Value Ratio for today is 1.30.

NSIT' s 10-Year Price to Median P/S Value Range
Min: 0.37   Max: 7.47
Current: 1.3

0.37
7.47

During the past 13 years, the highest Price to Median P/S Value Ratio of Insight Enterprises Inc was 7.47. The lowest was 0.37. And the median was 1.54.

NSIT's Price to Median P/S Value is ranked higher than
76% of the 1501 Companies
in the Global Information Technology Services industry.

( Industry Median: 1.10 vs. NSIT: 1.30 )

Definition

Insight Enterprises Inc'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
=119*0.18
=21.42

10-Year Median P/S Ratio is 0.18.
Insight Enterprises Inc's revenue per share for the trailing twelve months (TTM) ended in Dec. 2013 was 26.22 (Mar. 2013 ) + 32.92 (Jun. 2013 ) + 27.03 (Sep. 2013 ) + 32.83 (Dec. 2013 ) = $119.

* 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.

Insight Enterprises Inc'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
=26.80/21.42
=1.25

* 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.

Insight Enterprises Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
medpsvalue 11.0511.6213.5717.3718.6216.0918.4920.6921.2921.42

Insight Enterprises Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
medpsvalue 20.3120.6921.0421.5821.4121.2921.0020.7720.9021.42
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