Switch to:
GuruFocus has detected 5 Warning Signs with Esterline Technologies Corp $ESL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Esterline Technologies Corp (NYSE:ESL)
Median PS Value
USD 78.34 (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. Esterline Technologies Corp's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was USD 68.122. Esterline Technologies Corp's 10-Year median P/S ratio is 1.15. Therefore, the Median P/S Value for today is USD 78.34.

As of today, Esterline Technologies Corp's share price is USD 96.95. Esterline Technologies Corp's median P/S value is USD 78.34. Therefore, Esterline Technologies Corp's Price to Median P/S Value Ratio for today is 1.24.

ESL' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.09   Max: 1.61
Current: 1.24

0.09
1.61

During the past 13 years, the highest Price to Median P/S Value Ratio of Esterline Technologies Corp was 1.61. The lowest was 0.09. And the median was 0.72.

ESL's Price-to-Median-PS-Value is ranked higher than
53% of the 154 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.12 vs. ESL: 1.24 )

Definition

Esterline Technologies 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
=68.122*1.15
=78.34

10-Year Median P/S Ratio is 1.15.
Esterline Technologies Corp's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was 17.469 (Jun. 2016 ) + 18.313 (Sep. 2016 ) + 15.344 (Dec. 2016 ) + 16.996 (Mar. 2017 ) = USD 68.122.

* 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.

Esterline Technologies 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
=96.95/78.34
=1.24

* 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.

Esterline Technologies Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Sep15Sep16
medpsvalue 53.0257.6154.0757.5763.4169.3268.4472.6865.5977.01

Esterline Technologies Corp Quarterly Data

Jan15Apr15Jul15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
medpsvalue 71.3171.4672.0565.5966.5867.2568.8777.0177.7078.34
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK