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Bank of Montreal  (NYSE:BMO) Median PS Value: $72.29 (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 PS Ratio instead of PE Ratio or PB 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. Bank of Montreal's Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2017 was $26.124. Bank of Montreal's 10-Year median P/S ratio is 2.65. Therefore, the Median P/S Value for today is $72.29.

As of today, Bank of Montreal's share price is $83.50. Bank of Montreal's median P/S value is $72.29. Therefore, Bank of Montreal's Price to Median P/S Value Ratio for today is 1.16.

NYSE:BMO' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.65   Max: 1.37
Current: 1.16

0.65
1.37

During the past 13 years, the highest Price to Median P/S Value Ratio of Bank of Montreal was 1.37. The lowest was 0.65. And the median was 0.97.

NYSE:BMO's Price-to-Median-PS-Value is ranked higher than
60% of the 1469 Companies
in the Global industry.

( Industry Median: 1.16 vs. NYSE:BMO: 1.16 )

Historical Data

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

* Premium members only.

Bank of Montreal Annual Data

Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 64.98 69.01 63.94 66.03 0.00

Bank of Montreal Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
Median PS Value 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 Premium Member Only Premium Member Only Premium Member Only 66.03 68.09 0.00 0.00 0.00

Competitive Comparison
* 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.


Calculation

Bank of Montreal'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
=26.124*2.65
=69.23

10-Year Median P/S Ratio is 2.65.
Bank of Montreal's Revenue per Share for the trailing twelve months (TTM) ended in Oct. 2017 was 6.305 (Jan. 2017 ) + 6.537 (Apr. 2017 ) + 6.358 (Jul. 2017 ) + 6.924 (Oct. 2017 ) = $26.124.

* 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 PS Ratio instead of PE Ratio or PB 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.

Bank of Montreal'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
=83.50/69.23
=1.21

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


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