GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » GFI Group Inc (FRA:GDH1) » Definitions » PS Ratio

GFI Group (FRA:GDH1) PS Ratio : 1.00 (As of May. 23, 2024)


View and export this data going back to . Start your Free Trial

What is GFI Group 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, GFI Group's share price is €5.41. GFI Group's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2015 was €5.43. Hence, GFI Group's PS Ratio for today is 1.00.

Warning Sign:

GFI Group Inc stock P/S Ratio (=1.1) is close to 5-year high of 1.1

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

FRA:GDH1' s PS Ratio Range Over the Past 10 Years
Min: 0.26   Med: 0.78   Max: 3.15
Current: 1.1

During the past 13 years, GFI Group's highest PS Ratio was 3.15. The lowest was 0.26. And the median was 0.78.

FRA:GDH1's PS Ratio is not ranked
in the Capital Markets industry.
Industry Median: 4.215 vs FRA:GDH1: 1.10

GFI Group's Revenue per Sharefor the three months ended in Sep. 2015 was €1.18. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2015 was €5.43.

Warning Sign:

GFI Group Inc revenue has been in decline over the past 3 years.

During the past 12 months, the average Revenue per Share Growth Rate of GFI Group was -19.20% per year. During the past 3 years, the average Revenue per Share Growth Rate was -6.30% per year. During the past 5 years, the average Revenue per Share Growth Rate was 1.30% per year. During the past 10 years, the average Revenue per Share Growth Rate was 4.90% per year.

During the past 13 years, GFI Group's highest 3-Year average Revenue per Share Growth Rate was 31.70% per year. The lowest was 0.00% per year. And the median was 2.50% per year.

Back to Basics: PS Ratio


GFI Group PS Ratio Historical Data

The historical data trend for GFI Group'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.

GFI Group PS Ratio Chart

GFI Group Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.68 0.50 0.42 0.54 0.79

GFI Group Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 0.78 0.79 0.86 0.94 1.08

Competitive Comparison of GFI Group's PS Ratio

For the Capital Markets subindustry, GFI Group'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.


GFI Group's PS Ratio Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, GFI Group's PS Ratio distribution charts can be found below:

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



GFI Group 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.

GFI Group's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=5.41/5.426
=1.00

GFI Group's Share Price of today is €5.41.
GFI Group's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €5.43.

* 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.


GFI Group  (FRA:GDH1) 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.


GFI Group PS Ratio Related Terms

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


GFI Group (FRA:GDH1) Business Description

Traded in Other Exchanges
N/A
Address
GFI Group Inc was incorporated under the laws of the State of Delaware in 2001. The Company provides wholesale brokerage services, clearing services and electronic execution and trading support products for financial markets. It provide brokerage and trade execution services, clearing services, market data and trading platform and other software products to institutional customers in markets for a range of fixed income, financial, equity and commodity instruments. The Company provides execution services for its institutional wholesale customers by either matching their trading needs with counterparties having reciprocal interests or directing their orders to an exchange or other trading venue. The Company offers its customers a hybrid brokerage approach, combining a range of telephonic and electronic trade execution services, depending on the nature of the products and the specific needs of its customers. The Company operates in five business segments: Americas Brokerage; Europe, the Middle East and Africa Brokerage; Asia Brokerage, Clearing and Backed Trading and All Other. Its brokerage operations provide brokerage services in four product categories: fixed income, financial, equity and commodity. It's Clearing and Backed Trading segment encompasses its clearing, risk management, settlement and other back-office services, as well as the capital the Company provide to start-up trading groups, small hedge funds, market-makers and individual traders. The All Other segment captures revenues and costs that are not directly assignable to the brokerage or clearing and backed trading operating business segments, consisting of Company's corporate business activities and operations and commercial revenues from sales and licensing of trading systems software, analytic and market data. The Company offers products and services including Fixed Income Products, Financial Products, Equity Products, Commodity Products, Clearing and Settlement Services, and Software, Analytic and Market Data. The Company's competitors include ICAP Plc, Tullett Prebon Plc, CME, the Chicago Board Options Exchange, and Eurex and Euronext. The Company's businesses are subject to extensive regulation by government and self-regulatory organizations both in the United States and abroad.

GFI Group (FRA:GDH1) Headlines

No Headlines