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United Parcel Service Inc (UPS) (NYSE:UPS)
Median P/S Value
$95.00 (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. United Parcel Service Inc (UPS)'s revenue per share for the trailing twelve months (TTM) ended in Sep. 2014 was $61.69. United Parcel Service Inc (UPS)'s 10-Year median P/S ratio is 1.54. Therefore, the Median P/S Value for today is $95.00.

As of today, United Parcel Service Inc (UPS)'s share price is $111.41. United Parcel Service Inc (UPS)'s median P/S value is $95.00. Therefore, United Parcel Service Inc (UPS)'s Price to Median P/S Value Ratio for today is 1.16.

UPS' s 10-Year Price to Median P/S Value Range
Min: 0.65   Max: 1.89
Current: 1.16

0.65
1.89

During the past 13 years, the highest Price to Median P/S Value Ratio of United Parcel Service Inc (UPS) was 1.89. The lowest was 0.65. And the median was 1.10.

UPS's Price to Median P/S Value is ranked higher than
73% of the 1207 Companies
in the Global Integrated Shipping & Logistics industry.

( Industry Median: 1.17 vs. UPS: 1.16 )

Definition

United Parcel Service Inc (UPS)'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
=61.69*1.54
=95.00

10-Year Median P/S Ratio is 1.54.
United Parcel Service Inc (UPS)'s revenue per share for the trailing twelve months (TTM) ended in Sep. 2014 was 16 (Dec. 2013 ) + 14.8 (Mar. 2014 ) + 15.39 (Jun. 2014 ) + 15.5 (Sep. 2014 ) = $61.69.

* 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.

United Parcel Service Inc (UPS)'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
=111.41/95.00
=1.17

* 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.

United Parcel Service Inc (UPS) Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
medpsvalue 49.5358.8367.2571.9277.5569.5276.0382.5486.0490.09

United Parcel Service Inc (UPS) Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
medpsvalue 84.8785.0986.0486.7887.4688.7590.0991.3493.1995.00
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