GURUFOCUS.COM » STOCK LIST » Technology » Software » Unity Software Inc (NYSE:U) » Definitions » PS Ratio

Unity Software (Unity Software) PS Ratio : 3.95 (As of Apr. 25, 2024)


View and export this data going back to 2020. Start your Free Trial

What is Unity Software PS Ratio?

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, Unity Software's share price is $22.825. Unity Software's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $5.79. Hence, Unity Software's PS Ratio for today is 3.95.

Good Sign:

Unity Software Inc stock PS Ratio (=4.02) is close to 5-year low of 3.96

The historical rank and industry rank for Unity Software's PS Ratio or its related term are showing as below:

U' s PS Ratio Range Over the Past 10 Years
Min: 3.83   Med: 9.91   Max: 54.01
Current: 3.83

During the past 6 years, Unity Software's highest PS Ratio was 54.01. The lowest was 3.83. And the median was 9.91.

U's PS Ratio is ranked worse than
67.8% of 2739 companies
in the Software industry
Industry Median: 2.22 vs U: 3.83

Unity Software's Revenue per Sharefor the three months ended in Dec. 2023 was $1.63. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $5.79.

During the past 12 months, the average Revenue per Share Growth Rate of Unity Software was 28.30% per year. During the past 3 years, the average Revenue per Share Growth Rate was 8.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was 25.50% per year.

During the past 6 years, Unity Software's highest 3-Year average Revenue per Share Growth Rate was 33.10% per year. The lowest was 8.10% per year. And the median was 23.60% per year.

Back to Basics: PS Ratio


Unity Software PS Ratio Historical Data

The historical data trend for Unity Software'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.

* Premium members only.

Unity Software PS Ratio Chart

Unity Software Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial - 33.77 36.34 6.38 7.11

Unity Software Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.38 6.91 8.52 5.78 7.11

Competitive Comparison of Unity Software's PS Ratio

For the Software - Application subindustry, Unity Software'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.


Unity Software's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Unity Software's PS Ratio distribution charts can be found below:

* The bar in red indicates where Unity Software's PS Ratio falls into.



Unity Software 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.

Unity Software's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=22.825/5.785
=3.95

Unity Software's Share Price of today is $22.825.
Unity Software's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.79.

* 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:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Unity Software  (NYSE:U) 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.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

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.


Unity Software PS Ratio Related Terms

Thank you for viewing the detailed overview of Unity Software's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Unity Software (Unity Software) Business Description

Traded in Other Exchanges
Address
30 3rd Street, San Francisco, CA, USA, 94103-3104
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC and Other Americas, of which key revenue is derived from the EMEA region. The products are used in the gaming industry, architecture and construction sector, animation industry, and designing sector.
Executives
Tomer Bar-zeev director, officer: President, Grow C/O IRONSOURCE LTD., 121 MENACHEM BEGIN STREET, TEL AVIV L3 6701203
Anirma Gupta officer: SVP, General Counsel C/O UNITY SOFTWARE INC., 30 3RD STREET, SAN FRANCISCO CA 94103
Mark Barrysmith officer: Principal Accounting Officer C/O UNITY SOFTWARE INC., 30 3RD STREET, SAN FRANCISCO CA 94103
Michelle K. Lee director C/O ALARM.COM HOLDINGS, INC., 8281 GREENSBORO DRIVE, SUITE 100, TYSONS VA 22102
Marc Whitten officer: SVP & GM, Create Solutions C/O UNITY SOFTWARE INC., 30-3RD STREET, SAN FRANCISCO CA 94103
Luis Felipe Visoso director C/O UNITY SOFTWARE INC., 30 3RD STREET, SAN FRANCISCO CA 94103
Carol W. Carpenter officer: SVP & Chief Marketing Officer 1040 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10018
David Helgason director C/O UNITY SOFTWARE INC., 30 - 3RD STREET, SAN FRANCISCO CA 94103
James M Whitehurst director, officer: Interim CEO and President IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Silver Lake Group, L.l.c. director, 10 percent owner 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
John S. Riccitiello director, officer: President and CEO 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Robynne Sisco director 3401 HILLVIEW AVENUE, PALO ALTO CA 94304
Shlomo Dovrat director 16 ABBA EBAN AVENUE, HERZELIYA L3 46725
Clive Downie officer: SVP & Chief Marketing Officer 699 8TH STREET, SAN FRANCISCO CA 94103
Ingrid Lestiyo officer: SVP & GM, Operate Solutions C/O UNITY SOFTWARE INC., 30-3RD STREET, SAN FRANCISCO CA 94103