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TAL Education Group (NYSE:XRS)
Median P/S Value
$16.50 (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. TAL Education Group's revenue per share for the trailing twelve months (TTM) ended in Feb. 2014 was $3.93. TAL Education Group's 10-Year median P/S ratio is 5.21. Therefore, the Median P/S Value for today is $16.50.

As of today, TAL Education Group's share price is $27.51. TAL Education Group's median P/S value is $16.50. Therefore, TAL Education Group's Price to Median P/S Value Ratio for today is 1.64.

XRS' s 10-Year Price to Median P/S Value Range
Min: 0.59   Max: 1.44
Current: 1.64

0.59
1.44

During the past 6 years, the highest Price to Median P/S Value Ratio of TAL Education Group was 1.44. The lowest was 0.59. And the median was 1.09.

XRS's Price to Median P/S Value is ranked lower than
52% of the 130 Companies
in the Global Education & Training Services industry.

( Industry Median: 1.09 vs. XRS: 1.64 )

Definition

TAL Education Group'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
=3.93*5.21
=20.48

10-Year Median P/S Ratio is 5.21.
TAL Education Group's revenue per share for the trailing twelve months (TTM) ended in Feb. 2014 was 0.76 (Feb. 2013 ) + 1.15 (Aug. 2013 ) + 0.91 (Nov. 2013 ) + 1.11 (Feb. 2014 ) = $3.93.

* 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.

TAL Education Group'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
=27.51/20.48
=1.34

* 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.

TAL Education Group Annual Data

Feb09Feb10Feb11Feb12Feb13Feb14
medpsvalue 0.000.000.000.000.001.278.4311.8715.0416.50

TAL Education Group Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13Aug13Nov13Feb14
medpsvalue 9.6810.6211.8712.9114.0014.5715.0413.2214.6816.50
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