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Toll Brothers Inc  (NYSE:TOL) Median PS Value: $54.98 (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. Toll Brothers Inc's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2017 was $32.925. Toll Brothers Inc's 10-Year median P/S ratio is 1.67. Therefore, the Median P/S Value for today is $54.98.

As of today, Toll Brothers Inc's share price is $48.07. Toll Brothers Inc's median P/S value is $54.98. Therefore, Toll Brothers Inc's Price to Median P/S Value Ratio for today is 0.87.

NYSE:TOL' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.22   Max: 1.94
Current: 0.87

0.22
1.94

During the past 13 years, the highest Price to Median P/S Value Ratio of Toll Brothers Inc was 1.94. The lowest was 0.22. And the median was 0.60.

NYSE:TOL's Price-to-Median-PS-Value is ranked higher than
86% of the 684 Companies
in the Global industry.

( Industry Median: 1.21 vs. NYSE:TOL: 0.87 )

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.

Toll Brothers Inc Annual Data

Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.42 25.23 35.13 37.71 49.34

Toll Brothers Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
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 44.29 49.34 49.86 52.59 54.98

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

Toll Brothers 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
=32.925*1.67
=54.98

10-Year Median P/S Ratio is 1.67.
Toll Brothers Inc's Revenue per Share for the trailing twelve months (TTM) ended in Jul. 2017 was 10.807 (Oct. 2016 ) + 5.403 (Jan. 2017 ) + 7.955 (Apr. 2017 ) + 8.76 (Jul. 2017 ) = $32.925.

* 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.

Toll Brothers 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
=48.07/54.98
=0.87

* 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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