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GuruFocus has detected 3 Warning Signs with Ulta Beauty Inc $ULTA.
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Ulta Beauty Inc (NAS:ULTA)
Median PS Value
$190.07 (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. Ulta Beauty Inc's revenue per share for the trailing twelve months (TTM) ended in Jan. 2017 was $77.265. Ulta Beauty Inc's 10-Year median P/S ratio is 2.46. Therefore, the Median P/S Value for today is $190.07.

As of today, Ulta Beauty Inc's share price is $288.91. Ulta Beauty Inc's median P/S value is $190.07. Therefore, Ulta Beauty Inc's Price to Median P/S Value Ratio for today is 1.48.

ULTA' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.12   Max: 1.53
Current: 1.48

0.12
1.53

During the past 13 years, the highest Price to Median P/S Value Ratio of Ulta Beauty Inc was 1.53. The lowest was 0.12. And the median was 0.96.

ULTA's Price-to-Median-PS-Value is ranked lower than
78% of the 729 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.04 vs. ULTA: 1.48 )

Definition

Ulta Beauty 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
=77.265*2.46
=190.07

10-Year Median P/S Ratio is 2.46.
Ulta Beauty Inc's revenue per share for the trailing twelve months (TTM) ended in Jan. 2017 was 16.953 (Apr. 2016 ) + 17.022 (Jul. 2016 ) + 18.044 (Oct. 2016 ) + 25.246 (Jan. 2017 ) = $77.265.

* 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.

Ulta Beauty 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
=288.91/190.07
=1.52

* 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.

Ulta Beauty Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
medpsvalue 128.0045.2650.7558.2868.9684.76101.87123.33150.26190.07

Ulta Beauty Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
medpsvalue 116.53123.33129.24134.79141.35150.26158.88167.26176.75190.07
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