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Link Administration Holdings (ASX:LNK) PS Ratio : 1.30 (As of Apr. 30, 2024)


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What is Link Administration Holdings PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Link Administration Holdings's share price is A$2.25. Link Administration Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$1.73. Hence, Link Administration Holdings's PS Ratio for today is 1.30.

Warning Sign:

Link Administration Holdings Ltd stock PS Ratio (=1.2) is close to 3-year high of 1.32

The historical rank and industry rank for Link Administration Holdings's PS Ratio or its related term are showing as below:

ASX:LNK' s PS Ratio Range Over the Past 10 Years
Min: 0.61   Med: 1.18   Max: 2.23
Current: 1.3

During the past 8 years, Link Administration Holdings's highest PS Ratio was 2.23. The lowest was 0.61. And the median was 1.18.

ASX:LNK's PS Ratio is ranked better than
79.81% of 753 companies
in the Capital Markets industry
Industry Median: 4.12 vs ASX:LNK: 1.30

Link Administration Holdings's Revenue per Sharefor the six months ended in Dec. 2023 was A$1.02. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$1.73.

Warning Sign:

Link Administration Holdings Ltd revenue per share has been in decline for the last 5 years.

During the past 12 months, the average Revenue per Share Growth Rate of Link Administration Holdings was -24.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was -6.90% per year. During the past 5 years, the average Revenue per Share Growth Rate was -4.90% per year.

During the past 8 years, Link Administration Holdings's highest 3-Year average Revenue per Share Growth Rate was 5.50% per year. The lowest was -6.90% per year. And the median was -3.20% per year.

Back to Basics: PS Ratio


Link Administration Holdings PS Ratio Historical Data

The historical data trend for Link Administration Holdings's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Link Administration Holdings PS Ratio Chart

Link Administration Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PS Ratio
Get a 7-Day Free Trial 0.99 0.92 1.20 0.87 0.89

Link Administration Holdings Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
PS Ratio Get a 7-Day Free Trial 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 - 0.87 - 0.89 -

Competitive Comparison of Link Administration Holdings's PS Ratio

For the Capital Markets subindustry, Link Administration Holdings's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Link Administration Holdings's PS Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Link Administration Holdings's PS Ratio distribution charts can be found below:

* The bar in red indicates where Link Administration Holdings's PS Ratio falls into.



Link Administration Holdings PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Link Administration Holdings's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=2.25/1.731
=1.30

Link Administration Holdings's Share Price of today is A$2.25.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Link Administration Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$1.73.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Link Administration Holdings  (ASX:LNK) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Link Administration Holdings PS Ratio Related Terms

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Link Administration Holdings (ASX:LNK) Business Description

Traded in Other Exchanges
Address
680 George Street, Level 12, Sydney, NSW, AUS, 2000
Link derives its revenue primarily from providing administration services to the financial services sector in Australia, and the share registry and investment fund sectors in the U.K. The company is the largest provider of superannuation administration services and the second-largest provider of share registry services in Australia. Link's clients are usually contracted for between two and five years. The customers are relatively sticky, resulting in a high recurring revenue. The capital-light business model means cash flow is relatively strong.

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