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GuruFocus has detected 3 Warning Signs with Group 1 Automotive Inc $GPI.
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Group 1 Automotive Inc (NYSE:GPI)
Median PS Value
$83.33 (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. Group 1 Automotive Inc's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was $520.809. Group 1 Automotive Inc's 10-Year median P/S ratio is 0.16. Therefore, the Median P/S Value for today is $83.33.

As of today, Group 1 Automotive Inc's share price is $58.38. Group 1 Automotive Inc's median P/S value is $83.33. Therefore, Group 1 Automotive Inc's Price to Median P/S Value Ratio for today is 0.70.

GPI' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.27   Max: 1.79
Current: 0.7

0.27
1.79

During the past 13 years, the highest Price to Median P/S Value Ratio of Group 1 Automotive Inc was 1.79. The lowest was 0.27. And the median was 1.00.

GPI's Price-to-Median-PS-Value is ranked higher than
91% of the 1195 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 1.22 vs. GPI: 0.70 )

Definition

Group 1 Automotive Inc'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
=520.809*0.16
=83.33

10-Year Median P/S Ratio is 0.16.
Group 1 Automotive Inc's revenue per share for the trailing twelve months (TTM) ended in Mar. 2017 was 132.057 (Jun. 2016 ) + 137.194 (Sep. 2016 ) + 129.864 (Dec. 2016 ) + 121.694 (Mar. 2017 ) = $520.809.

* 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.

Group 1 Automotive Inc'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
=58.38/83.33
=0.70

* 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.

Group 1 Automotive Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
medpsvalue 43.4940.1031.0338.3143.4452.7256.3464.0673.5182.45

Group 1 Automotive Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
medpsvalue 64.0666.4369.8372.0073.5175.4977.9180.4982.4583.33
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