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, Faro Technologies's share price is $28.20.
Faro Technologies's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $18.17. Hence, Faro Technologies's PS Ratio for today is 1.55.
Warning Sign:
Faro Technologies Inc stock PS Ratio (=1.51) is close to 1-year high of 1.51
The historical rank and industry rank for Faro Technologies's PS Ratio or its related term are showing as below:
FARO'
s PS Ratio Range Over the Past 10 Years
Min: 0.59 Med: 1.96 Max: 5.59
Current: 1.54
During the past 13 years, Faro Technologies's highest PS Ratio was 5.59. The lowest was 0.59. And the median was 1.96.
FARO's PS Ratio is ranked better than 50.35% of 2445
companies
in the Hardware industry
Industry Median: 1.53
vs FARO: 1.54
Faro Technologies Inc 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 Faro Technologies was -6.50% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 3.80% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -3.90% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 0.20% per year.
During the past 13 years, Faro Technologies's highest 3-Year average Revenue per Share Growth Rate was 30.60% per year. The lowest was -7.80% per year. And the median was 8.40% per year.
Back to Basics: PS Ratio
Faro Technologies PS Ratio Historical Data
The historical data trend for Faro Technologies'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.
Competitive Comparison of Faro Technologies's PS Ratio
For the Scientific & Technical Instruments subindustry, Faro Technologies'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.
Faro Technologies's PS Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Faro Technologies's PS Ratio distribution charts can be found below:
* The bar in red indicates where Faro Technologies's PS Ratio falls into.
Faro Technologies 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.
Faro Technologies's Share Price of today is $28.20. Faro Technologies's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $18.17.
* 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:
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.
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.
Faro Technologies PS Ratio Related Terms
Thank you for viewing the detailed overview of Faro Technologies's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Faro Technologies Inc is a technology company. It designs, develops, manufactures, markets and supports software-driven, three-dimensional (3-D) measurement, imaging, and realization solutions for the 3D metrology, architecture, engineering and construction (AEC), Operations and Maintenance (O&M) and public safety analytics markets. The company enables its customers to capture, measure, manipulate, interact with and share 3D and 2D data from the physical world in a virtual environment and then translate the information back into the physical domain. FARO suite of 3D products and software solutions are used for the inspection of components and assemblies, rapid prototyping, reverse engineering, documenting large volumes or structures in 3D, surveying, and construction.
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