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GuruFocus has detected 5 Warning Signs with The Valspar Corp $VAL.
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The Valspar Corp (NYSE:VAL)
Median PS Value
$56.10 (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. The Valspar Corp's revenue per share for the trailing twelve months (TTM) ended in Jan. 2017 was $51.943. The Valspar Corp's 10-Year median P/S ratio is 1.08. Therefore, the Median P/S Value for today is $56.10.

As of today, The Valspar Corp's share price is $112.40. The Valspar Corp's median P/S value is $56.10. Therefore, The Valspar Corp's Price to Median P/S Value Ratio for today is 2.00.

VAL' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.48   Max: 2
Current: 2

0.48
2

During the past 13 years, the highest Price to Median P/S Value Ratio of The Valspar Corp was 2.00. The lowest was 0.48. And the median was 0.96.

VAL's Price-to-Median-PS-Value is ranked lower than
79% of the 952 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 1.32 vs. VAL: 2.00 )

Definition

The Valspar Corp'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
=51.943*1.08
=56.10

10-Year Median P/S Ratio is 1.08.
The Valspar Corp's revenue per share for the trailing twelve months (TTM) ended in Jan. 2017 was 13.066 (Apr. 2016 ) + 14.066 (Jul. 2016 ) + 13.652 (Oct. 2016 ) + 11.159 (Jan. 2017 ) = $51.943.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

The Valspar Corp'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
=112.40/56.10
=2.00

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

The Valspar Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
medpsvalue 34.1437.5030.8534.5144.1945.9149.8457.8657.3355.91

The Valspar Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
medpsvalue 57.8658.8658.5058.1057.3356.1356.1756.2355.9156.10
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