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McMillan Shakespeare (ASX:MMS) PS Ratio : 4.03 (As of May. 05, 2024)


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What is McMillan Shakespeare 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, McMillan Shakespeare's share price is A$18.58. McMillan Shakespeare's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$4.61. Hence, McMillan Shakespeare's PS Ratio for today is 4.03.

The historical rank and industry rank for McMillan Shakespeare's PS Ratio or its related term are showing as below:

ASX:MMS' s PS Ratio Range Over the Past 10 Years
Min: 1.13   Med: 2.62   Max: 4.79
Current: 4.03

During the past 13 years, McMillan Shakespeare's highest PS Ratio was 4.79. The lowest was 1.13. And the median was 2.62.

ASX:MMS's PS Ratio is ranked worse than
83.68% of 1066 companies
in the Business Services industry
Industry Median: 1.1 vs ASX:MMS: 4.03

McMillan Shakespeare's Revenue per Sharefor the six months ended in Dec. 2023 was A$3.52. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$4.61.

Warning Sign:

McMillan Shakespeare 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 McMillan Shakespeare was -10.20% per year. During the past 3 years, the average Revenue per Share Growth Rate was -2.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was -1.40% per year. During the past 10 years, the average Revenue per Share Growth Rate was 3.60% per year.

During the past 13 years, McMillan Shakespeare's highest 3-Year average Revenue per Share Growth Rate was 53.90% per year. The lowest was -2.10% per year. And the median was 10.00% per year.

Back to Basics: PS Ratio


McMillan Shakespeare PS Ratio Historical Data

The historical data trend for McMillan Shakespeare'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.

McMillan Shakespeare PS Ratio Chart

McMillan Shakespeare Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.19 1.76 1.85 1.78 3.74

McMillan Shakespeare Semi-Annual Data
Jun14 Dec14 Jun15 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 Premium Member Only Premium Member Only Premium Member Only - 1.78 - 3.74 -

Competitive Comparison of McMillan Shakespeare's PS Ratio

For the Staffing & Employment Services subindustry, McMillan Shakespeare'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.


McMillan Shakespeare's PS Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, McMillan Shakespeare's PS Ratio distribution charts can be found below:

* The bar in red indicates where McMillan Shakespeare's PS Ratio falls into.



McMillan Shakespeare 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.

McMillan Shakespeare's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=18.58/4.606
=4.03

McMillan Shakespeare's Share Price of today is A$18.58.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. McMillan Shakespeare's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$4.61.

* 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.


McMillan Shakespeare  (ASX:MMS) 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.


McMillan Shakespeare PS Ratio Related Terms

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McMillan Shakespeare (ASX:MMS) Business Description

Traded in Other Exchanges
Address
360 Elizabeth Street, Floor 21, Melbourne, VIC, AUS, 3000
McMillan Shakespeare Ltd is a provider of salary packaging, novated leasing, disability plan management and support coordination, asset management, and related financial products and services. It also cross-sells its salary packaging services to private entities via its asset management business in Australia and New Zealand, and it has acquired asset management businesses in the U.K. McMillan's asset management businesses provide motor vehicle leasing and fleet management services. The group has three operating segments: Group Remuneration Services, Asset Management Services, and Plan and Support Services. The prime revenue is generated from Asset Management segment.