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Advance Auto Parts Inc  (NYSE:AAP) Median PS Value: $126.39 (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. Advance Auto Parts Inc's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2019 was $131.652. Advance Auto Parts Inc's 10-Year median P/S ratio is 0.96. Therefore, the Median P/S Value for today is $126.39.

As of today, Advance Auto Parts Inc's share price is $151.80. Advance Auto Parts Inc's median P/S value is $126.39. Therefore, Advance Auto Parts Inc's Price to Median P/S Value Ratio for today is 1.20.

NYSE:AAP' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.55   Max: 1.46
Current: 1.2

0.55
1.46

During the past 13 years, the highest Price to Median P/S Value Ratio of Advance Auto Parts Inc was 1.46. The lowest was 0.55. And the median was 0.91.

NYSE:AAP's Price-to-Median-PS-Value is ranked lower than
71% of the 854 Companies
in the Global industry.

( Industry Median: 1.00 vs. NYSE:AAP: 1.20 )

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.

Advance Auto Parts Inc Annual Data

Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 128.73 126.79 124.37 121.43 124.26

Advance Auto Parts Inc Quarterly Data

Jun14 Sep14 Dec14 Apr15 Jun15 Sep15 Dec15 Apr16 Jun16 Sep16 Dec16 Apr17 Jun17 Sep17 Dec17 Apr18 Jun18 Sep18 Dec18 Apr19
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 121.15 121.91 123.07 124.26 126.39

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.


Advance Auto Parts Inc Distribution

* The bar in red indicates where Advance Auto Parts Inc's Median PS Value falls into.



Calculation

Advance Auto Parts 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
=131.652*0.96
=126.39

10-Year Median P/S Ratio is 0.96.
Advance Auto Parts Inc's Revenue per Share for the trailing twelve months (TTM) ended in Apr. 2019 was 31.338 (Jun. 2018 ) + 30.664 (Sep. 2018 ) + 28.708 (Dec. 2018 ) + 40.942 (Apr. 2019 ) = $131.652.

* 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.

Advance Auto Parts 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
=151.80/126.39
=1.20

* 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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