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Wise (CHIX:WISEL) PS Ratio : 5.81 (As of Dec. 13, 2024)


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What is Wise 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, Wise's share price is £9.41. Wise's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was £1.62. Hence, Wise's PS Ratio for today is 5.81.

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

CHIX:WISEl' s PS Ratio Range Over the Past 10 Years
Min: 4.32   Med: 8.53   Max: 26.95
Current: 5.76

During the past 6 years, Wise's highest PS Ratio was 26.95. The lowest was 4.32. And the median was 8.53.

CHIX:WISEl's PS Ratio is ranked worse than
74.41% of 2735 companies
in the Software industry
Industry Median: 2.34 vs CHIX:WISEl: 5.76

Wise's Revenue per Sharefor the six months ended in Sep. 2024 was £0.85. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was £1.62.

During the past 12 months, the average Revenue per Share Growth Rate of Wise was 34.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was 51.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 49.90% per year.

During the past 6 years, Wise's highest 3-Year average Revenue per Share Growth Rate was 51.20% per year. The lowest was 44.90% per year. And the median was 46.00% per year.

Back to Basics: PS Ratio


Wise PS Ratio Historical Data

The historical data trend for Wise'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.

Wise PS Ratio Chart

Wise Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
PS Ratio
Get a 7-Day Free Trial - - 9.08 5.75 6.35

Wise Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - 5.75 - 6.35 -

Competitive Comparison of Wise's PS Ratio

For the Information Technology Services subindustry, Wise'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.


Wise's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Wise's PS Ratio distribution charts can be found below:

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



Wise 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.

Wise's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=9.41/1.62
=5.81

Wise's Share Price of today is £9.41.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Wise's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was £1.62.

* 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.


Wise  (CHIX:WISEl) 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.


Wise PS Ratio Related Terms

Thank you for viewing the detailed overview of Wise's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Wise Business Description

Traded in Other Exchanges
Address
56 Shoreditch High Street, 6th Floor, Tea Building, London, GBR, E1 6JJ
Wise PLC is a currency conversion platform utilizing a peer-to-peer network to reduce transfer costs. The group focuses primarily on private clients and small and midsize enterprises. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds into various asset-management products.

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