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Pepper Money (ASX:PPM) PS Ratio : 1.60 (As of Dec. 13, 2024)


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What is Pepper Money 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, Pepper Money's share price is A$1.41. Pepper Money's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was A$0.88. Hence, Pepper Money's PS Ratio for today is 1.60.

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

ASX:PPM' s PS Ratio Range Over the Past 10 Years
Min: 1.1   Med: 1.54   Max: 2.09
Current: 1.57

During the past 4 years, Pepper Money's highest PS Ratio was 2.09. The lowest was 1.10. And the median was 1.54.

ASX:PPM's PS Ratio is ranked better than
70.44% of 521 companies
in the Credit Services industry
Industry Median: 3.18 vs ASX:PPM: 1.57

Pepper Money's Revenue per Sharefor the six months ended in Jun. 2024 was A$0.46. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was A$0.88.

Warning Sign:

Pepper Money Ltd revenue per share is in decline over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Pepper Money was -3.90% per year.

Back to Basics: PS Ratio


Pepper Money PS Ratio Historical Data

The historical data trend for Pepper Money'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.

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Pepper Money PS Ratio Chart

Pepper Money Annual Data
Trend Dec20 Dec21 Dec22 Dec23
PS Ratio
- 1.99 1.49 1.40

Pepper Money Semi-Annual Data
Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
PS Ratio Get a 7-Day Free Trial - 1.49 - 1.40 -

Competitive Comparison of Pepper Money's PS Ratio

For the Credit Services subindustry, Pepper Money'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.


Pepper Money's PS Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Pepper Money's PS Ratio distribution charts can be found below:

* The bar in red indicates where Pepper Money's PS Ratio falls into.



Pepper Money 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.

Pepper Money's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=1.41/0.881
=1.60

Pepper Money's Share Price of today is A$1.41.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Pepper Money's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was A$0.88.

* 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.


Pepper Money  (ASX:PPM) 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.


Pepper Money PS Ratio Related Terms

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Pepper Money Business Description

Traded in Other Exchanges
N/A
Address
177 Pacific Highway, Level 27, North Sydney, Sydney, NSW, AUS, 2060
Pepper Money Ltd provides a variety of home loan solutions. It also provides car loans, personal loans, loans for professional equipment, and commercial loans. The company operates in three reportable segments Mortgage, Asset Finance, and Loan and Other Servicing. The maximum revenue is derived from the Asset finance segment. The Asset finance segment includes financing a range of asset types for consumer and commercial customers.

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