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Electro Rent Corp  (NAS:ELRC) Median PS Value: $0.00 (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. Electro Rent Corp's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2016 was $8.05. Electro Rent Corp's 10-Year median P/S ratio is 0.00. Therefore, the Median P/S Value for today is $0.00.

As of today, Electro Rent Corp's share price is $15.50. Electro Rent Corp's median P/S value is $0.00. Therefore, Electro Rent Corp's Price to Median P/S Value Ratio for today is 0.00.


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.

Electro Rent Corp Annual Data

May06 May07 May08 May09 May10 May11 May12 May13 May14 May15
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.39 18.83 18.78 18.12 17.88

Electro Rent Corp Quarterly Data

May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16
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 17.94 17.88 17.24 16.00 14.73

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

Electro Rent Corp'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
=8.05*0.00
=0.00

10-Year Median P/S Ratio is 0.00.
Electro Rent Corp's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2016 was 2.478 (May. 2015 ) + 2.184 (Aug. 2015 ) + 1.772 (Nov. 2015 ) + 1.616 (Feb. 2016 ) = $8.05.

* 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.

Electro Rent Corp'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
=15.50/0.00
=

* 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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