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Star Cement (BOM:540575) PS Ratio : 3.00 (As of Jun. 21, 2024)


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What is Star Cement 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, Star Cement's share price is ₹216.50. Star Cement's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was ₹72.12. Hence, Star Cement's PS Ratio for today is 3.00.

Warning Sign:

Star Cement Ltd stock PS Ratio (=3.12) is close to 5-year high of 3.32

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

BOM:540575' s PS Ratio Range Over the Past 10 Years
Min: 1.53   Med: 2.29   Max: 3.91
Current: 3

During the past 9 years, Star Cement's highest PS Ratio was 3.91. The lowest was 1.53. And the median was 2.29.

BOM:540575's PS Ratio is ranked worse than
80.26% of 390 companies
in the Building Materials industry
Industry Median: 1.16 vs BOM:540575: 3.00

Star Cement's Revenue per Sharefor the three months ended in Mar. 2024 was ₹22.62. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was ₹72.12.

During the past 12 months, the average Revenue per Share Growth Rate of Star Cement was 7.50% per year. During the past 3 years, the average Revenue per Share Growth Rate was 20.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was 12.00% per year.

During the past 9 years, Star Cement's highest 3-Year average Revenue per Share Growth Rate was 20.00% per year. The lowest was 2.10% per year. And the median was 6.10% per year.

Back to Basics: PS Ratio


Star Cement PS Ratio Historical Data

The historical data trend for Star Cement'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.

Star Cement PS Ratio Chart

Star Cement Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
PS Ratio
Get a 7-Day Free Trial Premium Member Only 1.55 2.33 1.75 1.67 3.14

Star Cement Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 1.67 2.03 2.21 2.52 3.14

Competitive Comparison of Star Cement's PS Ratio

For the Building Materials subindustry, Star Cement'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.


Star Cement's PS Ratio Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Star Cement's PS Ratio distribution charts can be found below:

* The bar in red indicates where Star Cement's PS Ratio falls into.



Star Cement 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.

Star Cement's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=216.50/72.115
=3.00

Star Cement's Share Price of today is ₹216.50.
Star Cement's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹72.12.

* 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.


Star Cement  (BOM:540575) 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.


Star Cement PS Ratio Related Terms

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Star Cement (BOM:540575) Business Description

Traded in Other Exchanges
Address
P-15/1, Taratala Main Road, Century House, 2nd Floor, CPT Colony, Kolkata, WB, IND, 700 088
Star Cement Ltd is a cement company in India. It offers Cement and Cement linker products. The group markets clinker to different grinding units in North East India and parts of Eastern India. It also exports clinker to neighbouring countries like Nepal and Bhutan. The company's product range comprises Ordinary portland cement, Portland pozzolana cement, and Portland slag cement. The company sells its products in India, Nepal and Bhutan, of which prime revenue is generated from the sales made in India.

Star Cement (BOM:540575) Headlines

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