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Essity AB (FRA:ESWB) PS Ratio : 1.41 (As of Dec. 15, 2024)


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What is Essity AB 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, Essity AB's share price is €25.79. Essity AB's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was €18.23. Hence, Essity AB's PS Ratio for today is 1.41.

Warning Sign:

Essity AB stock PS Ratio (=1.45) is close to 1-year high of 1.55

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

FRA:ESWB' s PS Ratio Range Over the Past 10 Years
Min: 1.13   Med: 1.53   Max: 2.04
Current: 1.45

During the past 11 years, Essity AB's highest PS Ratio was 2.04. The lowest was 1.13. And the median was 1.53.

FRA:ESWB's PS Ratio is ranked worse than
62.47% of 1884 companies
in the Consumer Packaged Goods industry
Industry Median: 0.96 vs FRA:ESWB: 1.45

Essity AB's Revenue per Sharefor the three months ended in Sep. 2024 was €4.56. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was €18.23.

During the past 12 months, the average Revenue per Share Growth Rate of Essity AB was 11.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was 6.50% per year. During the past 5 years, the average Revenue per Share Growth Rate was 2.80% per year.

During the past 11 years, Essity AB's highest 3-Year average Revenue per Share Growth Rate was 8.40% per year. The lowest was -5.00% per year. And the median was 6.30% per year.

Back to Basics: PS Ratio


Essity AB PS Ratio Historical Data

The historical data trend for Essity AB'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.

Essity AB PS Ratio Chart

Essity AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.64 1.53 2.04 1.46 1.19

Essity AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 1.28 1.19 1.23 1.31 1.54

Competitive Comparison of Essity AB's PS Ratio

For the Household & Personal Products subindustry, Essity AB'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.


Essity AB's PS Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's PS Ratio distribution charts can be found below:

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



Essity AB 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.

Essity AB's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=25.79/18.23
=1.41

Essity AB's Share Price of today is €25.79.
Essity AB'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 €18.23.

* 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.


Essity AB  (FRA:ESWB) 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.


Essity AB PS Ratio Related Terms

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Essity AB Business Description

Address
Klarabergsviadukten 63, PO Box 200, Stockholm, SWE, SE-101 23
Essity is a health and hygiene company spun out of Svenska Cellulosa in June 2017. Essity's products span the feminine care, baby care, toilet paper, facial tissue, and wet wipes categories, as well as hand soap, hand sanitizers, and tissue dispensers for institutional customers. Essity also offers medical solutions in the form of wound care, orthopedics, and compression therapy, accounting for around 7% of net sales. Essity operates in 150 markets and generates 60% of its revenue in Europe.

Essity AB Headlines

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