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Richardson Electronics (NAS:RELL)
Median P/S Value
$2.75 (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. Richardson Electronics's revenue per share for the trailing twelve months (TTM) ended in May. 2014 was $9.82. Richardson Electronics's 10-Year median P/S ratio is 0.30. Therefore, the Median P/S Value for today is $2.75.

As of today, Richardson Electronics's share price is $10.03. Richardson Electronics's median P/S value is $2.75. Therefore, Richardson Electronics's Price to Median P/S Value Ratio for today is 3.60.

RELL' s 10-Year Price to Median P/S Value Range
Min: 0.25   Max: 5.42
Current: 3.6

0.25
5.42

During the past 13 years, the highest Price to Median P/S Value Ratio of Richardson Electronics was 5.42. The lowest was 0.25. And the median was 1.29.

RELL's Price to Median P/S Value is ranked lower than
69% of the 2657 Companies
in the Global Electronics Distribution industry.

( Industry Median: 1.17 vs. RELL: 3.60 )

Definition

Richardson Electronics'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
=9.82*0.30
=2.95

10-Year Median P/S Ratio is 0.30.
Richardson Electronics's revenue per share for the trailing twelve months (TTM) ended in May. 2014 was 2 (Aug. 2013 ) + 2.5 (Nov. 2013 ) + 2.33 (Feb. 2014 ) + 2.99 (May. 2014 ) = $9.82.

* 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.

Richardson Electronics'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
=10.03/2.95
=3.40

* 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.

Richardson Electronics Annual Data

May05May06May07May08May09May10May11May12May13May14
medpsvalue 9.059.899.9811.078.083.872.622.772.660.00

Richardson Electronics Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
medpsvalue 2.742.772.632.662.652.662.682.722.750.00
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