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Rockwell Automation Inc (NYSE:ROK)
Median P/S Value
$92.92 (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. Rockwell Automation Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was $46.81. Rockwell Automation Inc's 10-Year median P/S ratio is 1.99. Therefore, the Median P/S Value for today is $92.92.

As of today, Rockwell Automation Inc's share price is $115.40. Rockwell Automation Inc's median P/S value is $92.92. Therefore, Rockwell Automation Inc's Price to Median P/S Value Ratio for today is 1.24.

ROK' s 10-Year Price to Median P/S Value Range
Min: 0.1   Max: 1.82
Current: 1.24

0.1
1.82

During the past 13 years, the highest Price to Median P/S Value Ratio of Rockwell Automation Inc was 1.82. The lowest was 0.10. And the median was 0.62.

ROK's Price to Median P/S Value is ranked higher than
60% of the 1913 Companies
in the Global Diversified Industrials industry.

( Industry Median: 1.15 vs. ROK: 1.24 )

Definition

Rockwell Automation 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
=46.81*1.99
=93.15

10-Year Median P/S Ratio is 1.99.
Rockwell Automation Inc's revenue per share for the trailing twelve months (TTM) ended in Jun. 2014 was 12.23 (Sep. 2013 ) + 11.34 (Dec. 2013 ) + 11.42 (Mar. 2014 ) + 11.82 (Jun. 2014 ) = $46.81.

* 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.

Rockwell Automation 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
=115.40/93.15
=1.24

* 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.

Rockwell Automation Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
medpsvalue 38.7741.3150.3061.9176.3860.3866.9382.0086.6589.50

Rockwell Automation Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
medpsvalue 85.1286.0786.6587.2687.1688.5589.5091.0792.4292.92
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