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Capital Bank Financial Corp (NAS:CBF)
P/S Ratio
4.31 (As of Today)

As of today, Capital Bank Financial Corp's share price is $25.18. Capital Bank Financial Corp's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2014 was $5.84. Hence, Capital Bank Financial Corp's P/S Ratio for today is 4.31.

Warning Sign:

Capital Bank Financial Corp stock P/S Ratio (=4.31) is close to 3-year high of 4.46

CBF' s 10-Year P/S Ratio Range
Min: 2.32   Max: 4.46
Current: 4.31

2.32
4.46

During the past 5 years, Capital Bank Financial Corp's highest P/S Ratio was 4.46. The lowest was 2.32. And the median was 3.77.

CBF's P/S Ratiois ranked higher than
68% of the 2626 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 3.61 vs. CBF: 4.31 )

Capital Bank Financial Corp's Revenue per Share for the three months ended in Sep. 2014 was $1.45. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2014 was $5.84.

Warning Sign:

Capital Bank Financial Corp revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Capital Bank Financial Corp was -1.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was 34.10% per year.


Definition

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

Capital Bank Financial Corp's P/S Ratio for today is calculated as

P/S Ratio=Share Price/Revenue per Share (TTM)
=25.18/5.84
=4.31

Capital Bank Financial Corp's Share Price of today is $25.18.
Capital Bank Financial Corp's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.52 (Dec. 2013 ) + 1.42 (Mar. 2014 ) + 1.45 (Jun. 2014 ) + 1.45 (Sep. 2014 ) = $5.84.

* 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.

Capital Bank Financial Corp Annual Data

Dec09Dec10Dec11Dec12Dec13
ps 0.000.000.000.000.000.000.000.002.583.84

Capital Bank Financial Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ps 0.002.622.582.723.123.723.844.234.024.10
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