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Douglas Dynamics Inc (NYSE:PLOW)
Median P/S Value
$19.15 (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. Douglas Dynamics Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was $11.3. Douglas Dynamics Inc's 10-Year median P/S ratio is 1.70. Therefore, the Median P/S Value for today is $19.15.

As of today, Douglas Dynamics Inc's share price is $19.16. Douglas Dynamics Inc's median P/S value is $19.15. Therefore, Douglas Dynamics Inc's Price to Median P/S Value Ratio for today is 1.00.

PLOW' s 10-Year Price to Median P/S Value Range
Min: 0.6   Max: 1.33
Current: 1

0.6
1.33

During the past 7 years, the highest Price to Median P/S Value Ratio of Douglas Dynamics Inc was 1.33. The lowest was 0.60. And the median was 1.01.

PLOW's Price to Median P/S Value is ranked higher than
74% of the 1288 Companies
in the Global Auto Parts industry.

( Industry Median: 1.23 vs. PLOW: 1.00 )

Definition

Douglas Dynamics 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
=11.3*1.70
=19.21

10-Year Median P/S Ratio is 1.70.
Douglas Dynamics Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was 2.36 (Sep. 2013 ) + 3.31 (Dec. 2013 ) + 1.65 (Mar. 2014 ) + 3.98 (Jun. 2014 ) = $11.3.

* 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.

Douglas Dynamics 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
=19.16/19.21
=1.00

* 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.

Douglas Dynamics Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
medpsvalue 0.000.000.000.000.0020.0715.0516.2410.8014.93

Douglas Dynamics Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
medpsvalue 15.0314.5113.2710.8011.2210.4111.4914.9316.6419.15
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