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China Information Technology Inc (NAS:CNIT)
P/S Ratio
1.32 (As of Today)

As of today, China Information Technology Inc's share price is $3.68. China Information Technology Inc's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.78. Hence, China Information Technology Inc's P/S Ratio for today is 1.32.

CNIT' s 10-Year P/S Ratio Range
Min: 0.2   Max: 125
Current: 1.3

0.2
125

During the past 9 years, China Information Technology Inc's highest P/S Ratio was 125.00. The lowest was 0.20. And the median was 1.75.

CNIT's P/S Ratiois ranked higher than
76% of the 2271 Companies
in the Global Information Technology Services industry.

( Industry Median: 2.60 vs. CNIT: 1.30 )

China Information Technology Inc's Revenue per Share for the six months ended in Jun. 2014 was $1.08. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.78.

Warning Sign:

China Information Technology Inc revenue has been in decline for the last 5 years.

During the past 12 months, the average Revenue per Share Growth Rate of China Information Technology Inc was 79.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was -23.80% per year. During the past 5 years, the average Revenue per Share Growth Rate was -13.70% per year.

During the past 9 years, China Information Technology Inc's highest 3-Year average Revenue per Share Growth Rate was 317.60% per year. The lowest was -23.80% per year. And the median was 33.05% per year.


Definition

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

China Information Technology Inc's P/S Ratio for today is calculated as

P/S Ratio=Share Price/Revenue per Share (TTM)
=3.68/2.78
=1.32

China Information Technology Inc's Share Price of today is $3.68.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. China Information Technology Inc's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.78.

* 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.

China Information Technology Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ps 0.000.0068.7511.261.982.971.660.300.282.60

China Information Technology Inc Semi-Annual Data

Dec10Mar11Jun11Sep11Dec11Jun12Dec12Jun13Dec13Jun14
ps 1.660.860.690.340.300.310.280.712.601.70
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