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TPG Telecom (ASX:TPG) PS Ratio : 1.50 (As of Dec. 13, 2024)


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What is TPG Telecom 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, TPG Telecom's share price is A$4.46. TPG Telecom's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was A$2.98. Hence, TPG Telecom's PS Ratio for today is 1.50.

Good Sign:

TPG Telecom Ltd stock PS Ratio (=1.49) is close to 3-year low of 1.39

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

ASX:TPG' s PS Ratio Range Over the Past 10 Years
Min: 1.34   Med: 2.14   Max: 7.79
Current: 1.5

During the past 13 years, TPG Telecom's highest PS Ratio was 7.79. The lowest was 1.34. And the median was 2.14.

ASX:TPG's PS Ratio is ranked worse than
59.09% of 374 companies
in the Telecommunication Services industry
Industry Median: 1.235 vs ASX:TPG: 1.50

TPG Telecom's Revenue per Sharefor the six months ended in Jun. 2024 was A$1.46. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was A$2.98.

Warning Sign:

TPG Telecom Ltd revenue per share has been in decline over the past 3 years.

During the past 12 months, the average Revenue per Share Growth Rate of TPG Telecom was 0.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was -7.50% 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 11.40% per year.

During the past 13 years, TPG Telecom's highest 3-Year average Revenue per Share Growth Rate was 135.10% per year. The lowest was -19.30% per year. And the median was 9.50% per year.

Back to Basics: PS Ratio


TPG Telecom PS Ratio Historical Data

The historical data trend for TPG Telecom'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.

TPG Telecom PS Ratio Chart

TPG Telecom Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.54 1.92 2.07 1.68 1.74

TPG Telecom Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 - 1.68 - 1.74 -

Competitive Comparison of TPG Telecom's PS Ratio

For the Telecom Services subindustry, TPG Telecom'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.


TPG Telecom's PS Ratio Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, TPG Telecom's PS Ratio distribution charts can be found below:

* The bar in red indicates where TPG Telecom's PS Ratio falls into.



TPG Telecom 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.

TPG Telecom's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=4.46/2.983
=1.50

TPG Telecom's Share Price of today is A$4.46.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. TPG Telecom's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2024 was A$2.98.

* 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.


TPG Telecom  (ASX:TPG) 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.


TPG Telecom PS Ratio Related Terms

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TPG Telecom Business Description

Traded in Other Exchanges
Address
Level 27, Tower Two, 200 Barangaroo Avenue, International Towers Sydney, Barangaroo, NSW, AUS, 2000
TPG Telecom is Australia's third-biggest integrated telecom services company. It offers mobile, fixed-line broadband and telephony, enterprise communications, and networking solutions. The value-led group caters to all market segments spanning consumer, small business, corporate and wholesale, and government. TPG Telecom has grown materially since listing on the ASX in 2008, via organic growth and acquisitions, and culminated with the July 2020 Vodafone Hutchison Australia merger, the third-ranked mobile network operator in Australia. It owns an extensive stable of infrastructure assets, including a nationwide mobile network that is upgrading to 5G, Australia's second-largest fixed-line fibre network and submarine cable connecting Sydney to Guam, and onward to the US and Asia.