RELL has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 Feb. 2015 was $10.34. Richardson Electronics's 10-Year median P/S ratio is 0.32. Therefore, the Median P/S Value for today is $3.31.
As of today, Richardson Electronics's share price is $8.70. Richardson Electronics's median P/S value is $3.31. Therefore, Richardson Electronics's Price to Median P/S Value Ratio for today is 2.60.
During the past 13 years, the highest Price to Median P/S Value Ratio of Richardson Electronics was 4.91. The lowest was 0.31. And the median was 1.18.
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|
10-Year Median P/S Ratio is 0.32.
Richardson Electronics's revenue per share for the trailing twelve months (TTM) ended in Feb. 2015 was 2.99 (May. 2014 ) + 2.48 (Aug. 2014 ) + 2.43 (Nov. 2014 ) + 2.44 (Feb. 2015 ) = $10.34.
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 companys 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|
Richardson Electronics Annual Data
Richardson Electronics Quarterly Data