The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Wright Medical Group's share price is €18.87.
Wright Medical Group's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2015 was €5.26. Hence, Wright Medical Group's PS Ratio for today is 3.59.
Good Sign:
Wright Medical Group Inc stock P/S Ratio (=3.59) is close to 2-year low of 3.59
The historical rank and industry rank for Wright Medical Group's PS Ratio or its related term are showing as below:
FRA:WM3'
s PS Ratio Range Over the Past 10 Years
Min: 0.98 Med: 2.91 Max: 6.06
Current: 3.59
During the past 13 years, Wright Medical Group's highest PS Ratio was 6.06. The lowest was 0.98. And the median was 2.91.
FRA:WM3's PS Ratio is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 3.285
vs FRA:WM3: 3.59
Wright Medical Group Inc revenue has been in decline for the last 5 years.
During the past 12 months, the average Revenue per Share Growth Rate of Wright Medical Group was 28.00% per year.
During the past 3 years, the average Revenue per Share Growth Rate was -21.80% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -17.80% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -4.30% per year.
During the past 13 years, Wright Medical Group's highest 3-Year average Revenue per Share Growth Rate was 12.40% per year. The lowest was 0.00% per year. And the median was 3.40% per year.
Back to Basics: PS Ratio
Wright Medical Group PS Ratio Historical Data
The historical data trend for Wright Medical Group's PS Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Wright Medical Group's PS Ratio
For the Medical Devices subindustry, Wright Medical Group's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Wright Medical Group's PS Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Wright Medical Group's PS Ratio distribution charts can be found below:
* The bar in red indicates where Wright Medical Group's PS Ratio falls into.
Wright Medical Group PS Ratio Calculation
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Wright Medical Group's Share Price of today is €18.87. Wright Medical Group's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €5.26.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
Wright Medical Group (FRA:WM3) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Wright Medical Group PS Ratio Related Terms
Thank you for viewing the detailed overview of Wright Medical Group's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Wright Medical Group (FRA:WM3) Business Description
Wright Medical Group Inc, through Wright Medical Technology, Inc. and other operating subsidiaries, is a specialty orthopaedic company, that provides extremity and biologic solutions that enable clinicians to alleviate pain and restore their patients' lifestyles. The Company provides surgical solutions for the foot and ankle market and markets its products in over 60 countries. Its business includes products that are used in foot and ankle repair, upper extremity products, and biologics products, which are used to replace damaged or diseased bone, to stimulate bone growth and to provide other biological solutions for surgeons and their patients. Extremity hardware includes implants and other devices to replace or reconstruct injured or diseased joints and bones of the foot, ankle, hand, wrist, fingers, toes, elbow and shoulder, which it generally refer to as either foot and ankle or upper extremity products. The Company's manufacturing and warehousing operations are located in Arlington, Tennessee. Outside the U.S., The Company has distribution and administrative facilities in Amsterdam, the Netherlands, and sales and distribution offices in Canada, Australia, and Europe. The Company operates its continuing operations as one reportable segment and offer products in extremity reconstruction and biologics. The Company's products include CHARLOTTE, CLAW II, DARCO, EVOLVE, MICRONAIL, GRAFTJACKET, OSTEOSET. Its competitors include major companies in the orthopaedic and biologics industries, as well as academic institutions and other public and private research organizations that continue to conduct research, seek patent protection and establish arrangements for commercializing products. The Company's products are strictly regulated by the FDA under the Food, Drug, and Cosmetic Act. Some of its products are also regulated by state agencies.
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