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Rite Aid Corp (NYSE:RAD)
Median P/S Value
$1.94 (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. Rite Aid Corp's revenue per share for the trailing twelve months (TTM) ended in May. 2014 was $19.42. Rite Aid Corp's 10-Year median P/S ratio is 0.10. Therefore, the Median P/S Value for today is $1.94.

As of today, Rite Aid Corp's share price is $4.95. Rite Aid Corp's median P/S value is $1.94. Therefore, Rite Aid Corp's Price to Median P/S Value Ratio for today is 2.61.

RAD' s 10-Year Price to Median P/S Value Range
Min: 0.09   Max: 9.14
Current: 2.61

0.09
9.14

During the past 13 years, the highest Price to Median P/S Value Ratio of Rite Aid Corp was 9.14. The lowest was 0.09. And the median was 1.37.

RAD's Price to Median P/S Value is ranked lower than
51% of the 535 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 1.12 vs. RAD: 2.61 )

Definition

Rite Aid 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
=19.42*0.10
=1.94

10-Year Median P/S Ratio is 0.10.
Rite Aid Corp's revenue per share for the trailing twelve months (TTM) ended in May. 2014 was 6.44 (Nov. 2013 ) + 6.49 (Feb. 2014 ) + 0 (Apr. 2014 ) + 6.49 (May. 2014 ) = $19.42.

* 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.

Rite Aid 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
=4.95/1.94
=2.55

* 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.

Rite Aid Corp Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
medpsvalue 2.962.683.613.333.132.912.862.952.782.59

Rite Aid Corp Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14Apr14May14Aug14
medpsvalue 2.952.922.782.692.652.612.590.001.940.00
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