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AutoZone Inc (NYSE:AZO)
P/S Ratio
1.86 (As of Today)

As of today, AutoZone Inc's share price is $513.22. AutoZone Inc's Revenue per Share for the trailing twelve months (TTM) ended in May. 2014 was $275.62. Hence, AutoZone Inc's P/S Ratio for today is 1.86.

Warning Sign:

AutoZone Inc stock P/S Ratio (=1.90) is close to 10-year high of 2.03

AZO' s 10-Year P/S Ratio Range
Min: 0.88   Max: 2.03
Current: 1.86

0.88
2.03

During the past 13 years, AutoZone Inc's highest P/S Ratio was 2.03. The lowest was 0.88. And the median was 1.44.

AZO's P/S Ratiois ranked lower than
51% of the 1171 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.80 vs. AZO: 1.86 )

AutoZone Inc's Revenue per Share for the three months ended in May. 2014 was $69.45. Its Revenue per Share for the trailing twelve months (TTM) ended in May. 2014 was $275.62.

Good Sign:

AutoZone Inc has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of AutoZone Inc was 16.40% per year. During the past 3 years, the average Revenue per Share Growth Rate was 18.70% per year. During the past 5 years, the average Revenue per Share Growth Rate was 19.90% per year. During the past 10 years, the average Revenue per Share Growth Rate was 17.00% per year.

During the past 13 years, AutoZone Inc's highest 3-Year average Revenue per Share Growth Rate was 26.20% per year. The lowest was 10.60% per year. And the median was 19.00% per year.


Definition

The P/S Ratio is another ratio widely used to value stocks. It was first used by Ken Fisher.

AutoZone Inc's P/S Ratio for today is calculated as

P/S Ratio=Share Price/Revenue per Share (TTM)
=513.22/275.62
=1.86

AutoZone Inc's Share Price of today is $513.22.
AutoZone Inc's Revenue per Share for the trailing twelve months (TTM) ended in May. 2014 was 87.69 (Aug. 2013 ) + 60.38 (Nov. 2013 ) + 58.1 (Feb. 2014 ) + 69.45 (May. 2014 ) = $275.62.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

P/E Ratio=Market Cap/Revenue

The revenue here is for the trailing 12 months.


Explanation

The P/S 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 P/S ratio works especially well when you want to compare the stock’s current valuation with its historical valuation. The P/S ratio is a great valuation tool for evaluating cyclical businesses where the P/E 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 P/S 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.

Similar to the Price/Earnings ratio and Price/Cash Flow or Price/Free Cash Flow, the P/E ratio measures the valuation based on the earning power of the company. This is where it is different from Price/Book ratio, which measures the valuation based on the company’s balance sheet.


Be Aware

The P/S 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.


Related Terms

Revenue per Share, Market Cap, Revenue, Median P/S Value, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

AutoZone Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ps 1.151.311.141.361.341.201.401.651.661.67

AutoZone Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ps 1.861.821.661.711.661.731.671.782.021.93
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