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, Avid Technology's share price is $27.04.
Avid Technology's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 was $9.38. Hence, Avid Technology's PS Ratio for today is 2.88.
The historical rank and industry rank for Avid Technology's PS Ratio or its related term are showing as below:
AVID'
s PS Ratio Range Over the Past 10 Years
Min: 0.3 Med: 0.67 Max: 4.72
Current: 2.88
During the past 13 years, Avid Technology's highest PS Ratio was 4.72. The lowest was 0.30. And the median was 0.67.
AVID's PS Ratio is not ranked
in the Software industry.
Industry Median: 2.32
vs AVID: 2.88
Avid Technology Inc revenue per share has been in decline for the last 5 years.
During the past 12 months, the average Revenue per Share Growth Rate of Avid Technology was 1.10% per year.
During the past 3 years, the average Revenue per Share Growth Rate was -0.60% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -2.70% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -6.30% per year.
During the past 13 years, Avid Technology's highest 3-Year average Revenue per Share Growth Rate was 47.10% per year. The lowest was -12.10% per year. And the median was -4.00% per year.
Back to Basics: PS Ratio
Avid Technology PS Ratio Historical Data
The historical data trend for Avid Technology'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 Avid Technology's PS Ratio
For the Software - Application subindustry, Avid Technology'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.
Avid Technology's PS Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Avid Technology's PS Ratio distribution charts can be found below:
* The bar in red indicates where Avid Technology's PS Ratio falls into.
Avid Technology 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.
Avid Technology's Share Price of today is $27.04. Avid Technology's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.38.
* 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:
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.
Avid Technology PS Ratio Related Terms
Thank you for viewing the detailed overview of Avid Technology's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Avid Technology (Avid Technology) Business Description
Avid Technology Inc develops and sells software and hardware for digital media production and management. Its products are used in production, film studios, cable television stations, recording studios, and other agencies. The company has operations in the U.S.; the Americas; Europe, Middle East, and Africa; and Asia-Pacific. Most of its revenue is split fairly evenly between the U.S. and EMEA. The company's products are organized into suites, including Artist Suite, which includes video editing and digital audio workstations; Media Suite, which provides newsroom management solutions; Studio Suite, which provides tools for on-air programming; and Storage Suite, which provides products for digital storage. It derives most of the revenue from video and audio products and services.
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