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Kayne Anderson Energy Development Co (NYSE:KED)
P/S Ratio
35.95 (As of Today)

As of today, Kayne Anderson Energy Development Co's share price is $13.66. Kayne Anderson Energy Development Co's Revenue per Share for the trailing twelve months (TTM) ended in Aug. 2015 was $0.38. Hence, Kayne Anderson Energy Development Co's P/S Ratio for today is 35.95.

Good Sign:

Kayne Anderson Energy Development Co stock P/S Ratio (=35.95) is close to 3-year low of 32.39

KED' s P/S Ratio Range Over the Past 10 Years
Min: 12   Max: 68
Current: 35.95

12
68

During the past 8 years, Kayne Anderson Energy Development Co's highest P/S Ratio was 68.00. The lowest was 12.00. And the median was 37.64.

KED's P/S Ratio is ranked lower than
91% of the 1236 Companies
in the Global Asset Management industry.

( Industry Median: 6.64 vs. KED: 35.95 )

Kayne Anderson Energy Development Co's Revenue per Share for the three months ended in Aug. 2015 was $0.06. Its Revenue per Share for the trailing twelve months (TTM) ended in Aug. 2015 was $0.38.

Warning Sign:

Kayne Anderson Energy Development Co revenue has been in decline over the past 3 years.

During the past 12 months, the average Revenue per Share Growth Rate of Kayne Anderson Energy Development Co was 21.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was -15.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was 4.30% per year.

During the past 8 years, Kayne Anderson Energy Development Co's highest 3-Year average Revenue per Share Growth Rate was 79.00% per year. The lowest was 0.00% per year. And the median was 5.90% per year.


Definition

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

Kayne Anderson Energy Development Co's P/S Ratio for today is calculated as

P/S Ratio=Share Price/Revenue per Share (TTM)
=13.66/0.38
=35.95

Kayne Anderson Energy Development Co's Share Price of today is $13.66.
Kayne Anderson Energy Development Co's Revenue per Share for the trailing twelve months (TTM) ended in Aug. 2015 was 0.12 (Nov. 2014 ) + 0.13 (Feb. 2015 ) + 0.07 (May. 2015 ) + 0.06 (Aug. 2015 ) = $0.38.

* 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.

Kayne Anderson Energy Development Co Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
ps 0.000.000.0043.5819.6165.0418.7131.8952.1853.02

Kayne Anderson Energy Development Co Quarterly Data

May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15
ps 38.6547.0552.1858.7359.1649.7153.0253.1052.3359.63
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