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GuruFocus has detected 2 Warning Signs with Alkermes PLC $ALKS.
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Alkermes PLC (NAS:ALKS)
Median PS Value
$36.53 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Alkermes PLC's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was $5.138. Alkermes PLC's 10-Year median P/S ratio is 7.11. Therefore, the Median P/S Value for today is $36.53.

As of today, Alkermes PLC's share price is $58.47. Alkermes PLC's median P/S value is $36.53. Therefore, Alkermes PLC's Price to Median P/S Value Ratio for today is 1.60.

ALKS' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.38   Max: 14.45
Current: 1.6

0.38
14.45

During the past 13 years, the highest Price to Median P/S Value Ratio of Alkermes PLC was 14.45. The lowest was 0.38. And the median was 1.56.

ALKS's Price-to-Median-PS-Value is ranked lower than
78% of the 667 Companies
in the Global Biotechnology industry.

( Industry Median: 0.97 vs. ALKS: 1.60 )

Definition

Alkermes PLC's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=5.138*7.11
=36.53

10-Year Median P/S Ratio is 7.11.
Alkermes PLC's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.29 (Jun. 2016 ) + 1.189 (Sep. 2016 ) + 1.403 (Dec. 2016 ) + 1.256 (Mar. 2017 ) = $5.138.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company’s value.

Alkermes PLC's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=58.47/36.53
=1.60

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number, GAVA


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Alkermes PLC Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Dec14Dec15Dec16
medpsvalue 16.7116.6424.1513.3713.8923.5830.0829.8029.9534.99

Alkermes PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
medpsvalue 29.8031.0831.2530.7129.9529.5931.5332.7334.9936.53
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