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Seagate Technology PLC (NAS:STX)
Median P/S Value
$38.49 (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. Seagate Technology PLC's revenue per share for the trailing twelve months (TTM) ended in Dec. 2013 was $38.49. Seagate Technology PLC's 10-Year median P/S ratio is 1.00. Therefore, the Median P/S Value for today is $38.49.

As of today, Seagate Technology PLC's share price is $54.11. Seagate Technology PLC's median P/S value is $38.49. Therefore, Seagate Technology PLC's Price to Median P/S Value Ratio for today is 1.42.

STX' s 10-Year Price to Median P/S Value Range
Min: 0.2   Max: 1.98
Current: 1.42

0.2
1.98

During the past 13 years, the highest Price to Median P/S Value Ratio of Seagate Technology PLC was 1.98. The lowest was 0.20. And the median was 0.99.

STX's Price to Median P/S Value is ranked lower than
65% of the 2322 Companies
in the Global Data Storage industry.

( Industry Median: 1.10 vs. STX: 1.42 )

Definition

Seagate Technology PLC'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
=38.49*1.00
=38.49

10-Year Median P/S Ratio is 1.00.
Seagate Technology PLC's revenue per share for the trailing twelve months (TTM) ended in Dec. 2013 was 9.56 (Mar. 2013 ) + 9.25 (Jun. 2013 ) + 9.48 (Sep. 2013 ) + 10.2 (Dec. 2013 ) = $38.49.

* 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.

Seagate Technology PLC'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
=54.11/38.49
=1.41

* 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.

Seagate Technology PLC Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
medpsvalue 12.5015.0117.5519.4223.6219.9922.2023.5333.8337.61

Seagate Technology PLC Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
medpsvalue 24.4826.1729.8333.8336.4638.8638.8137.6137.9738.49
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