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, El Paso Electric Co's share price is $25.24.
El Paso Electric Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2020 was $20.80. Hence, El Paso Electric Co's PS Ratio for today is 1.21.
The historical rank and industry rank for El Paso Electric Co's PS Ratio or its related term are showing as below:
EE's PS Ratio is not ranked *
in the Utilities - Regulated industry.
Industry Median: 1.26 * Ranked among companies with meaningful PS Ratio only.
The historical data trend for El Paso Electric Co'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 El Paso Electric Co's PS Ratio
For the Utilities - Regulated Electric subindustry, El Paso Electric Co'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.
El Paso Electric Co's PS Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, El Paso Electric Co's PS Ratio distribution charts can be found below:
* The bar in red indicates where El Paso Electric Co's PS Ratio falls into.
El Paso Electric Co 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.
El Paso Electric Co's Share Price of today is $25.24. El Paso Electric Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $20.80.
* 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:
El Paso Electric Co (NYSE:EE) PS Ratio Explanation
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.
El Paso Electric Co PS Ratio Related Terms
Thank you for viewing the detailed overview of El Paso Electric Co's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
El Paso Electric Co (El Paso Electric Co) Business Description
El Paso Electric Co is a Texas-based public utility company engaged in the generation, transmission, and distribution of electricity in the Southwestern U.S. The company principally serves retail customers in the El Paso, Texas and Las Cruces, New Mexico markets through its portfolio of nuclear, natural gas, coal, solar, and wind power plants. The vast majority of the total power produced by El Paso Electric is derived from its nuclear and natural gas facilities. The company generates most of its revenue from the production and sale of energy. Distribution service fees also represent a significant income stream. El Paso Electric primarily serves residential and small industrial customers, but also participates in wholesale transactions with local military installations and universities.
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