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Toll Brothers Inc (NYSE:TOL)
Median P/S Value
$31.60 (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. Toll Brothers Inc's revenue per share for the trailing twelve months (TTM) ended in Jul. 2014 was $19.63. Toll Brothers Inc's 10-Year median P/S ratio is 1.61. Therefore, the Median P/S Value for today is $31.60.

As of today, Toll Brothers Inc's share price is $34.94. Toll Brothers Inc's median P/S value is $31.60. Therefore, Toll Brothers Inc's Price to Median P/S Value Ratio for today is 1.10.

TOL' s 10-Year Price to Median P/S Value Range
Min: 0.26   Max: 2.01
Current: 1.1

0.26
2.01

During the past 13 years, the highest Price to Median P/S Value Ratio of Toll Brothers Inc was 2.01. The lowest was 0.26. And the median was 0.59.

TOL's Price to Median P/S Value is ranked higher than
69% of the 539 Companies
in the Global Residential Construction industry.

( Industry Median: 1.25 vs. TOL: 1.10 )

Definition

Toll Brothers 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
=19.63*1.61
=31.60

10-Year Median P/S Ratio is 1.61.
Toll Brothers Inc's revenue per share for the trailing twelve months (TTM) ended in Jul. 2014 was 5.87 (Oct. 2013 ) + 3.48 (Jan. 2014 ) + 4.61 (Apr. 2014 ) + 5.67 (Jul. 2014 ) = $19.63.

* 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.

Toll Brothers 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
=34.94/31.60
=1.11

* 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.

Toll Brothers Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
medpsvalue 38.5855.2959.8645.5832.0417.4814.4714.1517.7724.33

Toll Brothers Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
medpsvalue 14.5516.0517.7718.6319.7220.7024.3325.9528.7131.60
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