GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Tata Motors Ltd (NYSE:TTM) » Definitions » PS Ratio

Tata Motors (Tata Motors) PS Ratio : 0.38 (As of Apr. 26, 2024)


View and export this data going back to 2004. Start your Free Trial

What is Tata Motors 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, Tata Motors's share price is $25.14. Tata Motors's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $66.43. Hence, Tata Motors's PS Ratio for today is 0.38.

Warning Sign:

Tata Motors Ltd stock PS Ratio (=0.91) is close to 1-year high of 0.95

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

TTM' s PS Ratio Range Over the Past 10 Years
Min: 0.3   Med: 1.46   Max: 3.23
Current: 0.91

During the past 13 years, Tata Motors's highest PS Ratio was 3.23. The lowest was 0.30. And the median was 1.46.

TTM's PS Ratio is ranked worse than
51.88% of 1280 companies
in the Vehicles & Parts industry
Industry Median: 0.84 vs TTM: 0.91

Tata Motors's Revenue per Sharefor the three months ended in Dec. 2023 was $17.22. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $66.43.

During the past 12 months, the average Revenue per Share Growth Rate of Tata Motors was 76.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was 11.30% per year. During the past 5 years, the average Revenue per Share Growth Rate was 2.00% per year. During the past 10 years, the average Revenue per Share Growth Rate was 2.70% per year.

During the past 13 years, Tata Motors's highest 3-Year average Revenue per Share Growth Rate was 44.10% per year. The lowest was -7.00% per year. And the median was 13.70% per year.

Back to Basics: PS Ratio


Tata Motors PS Ratio Historical Data

The historical data trend for Tata Motors'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.

Tata Motors PS Ratio Chart

Tata Motors Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.20 0.09 0.44 0.52 0.41

Tata Motors Quarterly Data
Mar13 Dec13 Mar14 Dec14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Sep21 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 0.62 0.41 0.61 0.60 0.71

Competitive Comparison of Tata Motors's PS Ratio

For the Auto Manufacturers subindustry, Tata Motors'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.


Tata Motors's PS Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Tata Motors's PS Ratio distribution charts can be found below:

* The bar in red indicates where Tata Motors's PS Ratio falls into.



Tata Motors 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.

Tata Motors's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=25.14/66.43
=0.38

Tata Motors's Share Price of today is $25.14.
Tata Motors'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 $66.43.

* 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.


Tata Motors  (NYSE:TTM) 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.


Tata Motors PS Ratio Related Terms

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


Tata Motors (Tata Motors) Business Description

Address
24, Homi Mody Street, Bombay House, Mumbai, MH, IND, 400 001
Tata Motors Ltd is an automobile manufacturer company. The company's segment includes Automotive and others. The Automotive segment consists of four reportable sub-segments: Tata Commercial Vehicles, Tata Passenger Vehicles, Jaguar Land Rover, and Vehicle Financing. Others consist of IT services and Insurance Broking services. Geographically, it derives a majority of its revenue from India.

Tata Motors (Tata Motors) Headlines

From GuruFocus

2 Stocks to Sell

By Alberto Abaterusso Alberto Abaterusso 10-27-2019

Aston Martin On An Expansion Mode

By reports.droy reports.droy 12-15-2014

Ken Heebner Purchases Stake in Tata Motors

By Kyle Ferguson Kyle Ferguson 08-15-2016

Tata Motors: A Ken Fisher Bargain Stock

By Jonathan Poland Jonathan Poland 05-05-2015

Jaguar To Feature In Next 007 Bond Movie

By reports.droy reports.droy 02-22-2015

Tata Motors – License to Dive - TTM

By Dr. Paul Price Dr. Paul Price 11-23-2009