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, King Digital Entertainment's share price is $18.00.
King Digital Entertainment's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2015 was $6.32. Hence, King Digital Entertainment's PS Ratio for today is 2.85.
The historical rank and industry rank for King Digital Entertainment's PS Ratio or its related term are showing as below:
KING's PS Ratio is not ranked *
in the Interactive Media industry.
Industry Median: 1.93 * Ranked among companies with meaningful PS Ratio only.
* 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 King Digital Entertainment's PS Ratio
For the Electronic Gaming & Multimedia subindustry, King Digital Entertainment'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.
King Digital Entertainment's PS Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, King Digital Entertainment's PS Ratio distribution charts can be found below:
* The bar in red indicates where King Digital Entertainment's PS Ratio falls into.
King Digital Entertainment 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.
King Digital Entertainment's Share Price of today is $18.00. King Digital Entertainment's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.32.
* 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:
King Digital Entertainment (NYSE:KING) 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.
King Digital Entertainment PS Ratio Related Terms
Thank you for viewing the detailed overview of King Digital Entertainment's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
King Digital Entertainment (King Digital Entertainment) Business Description
King Digital Entertainment PLC was originally incorporated as Midasplayer.com Limited in September 2002, a company organized under the laws of England and Wales. It is an interactive entertainment company for the mobile world. The Company provides engaging content to its audience to match mobile lifestyles: anywhere, anytime and on any device. Its games include Candy Crush Saga, Pet Rescue Saga, Farm Heroes Saga, Papa Pear Saga and Bubble Witch Saga. The Company makes its games available for free, while players can purchase virtual items priced relative to the entertainment value they provide. It embeds social features in the content that enhances the player experience. The Company develops and publishes casual games on royalgames.com, its tournament portal and on mobile and social platform. Casual games typically include a puzzle element. The Company's competitors include other game developers and emerging and potential game developers.
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