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, HCC Insurance Holdings's share price is €70.39.
HCC Insurance Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2015 was €24.37. Hence, HCC Insurance Holdings's PS Ratio for today is 2.89.
Warning Sign:
HCC Insurance Holdings Inc stock P/S Ratio (=2.72) is close to 10-year high of 2.72
The historical rank and industry rank for HCC Insurance Holdings's PS Ratio or its related term are showing as below:
FRA:HCZ'
s PS Ratio Range Over the Past 10 Years
Min: 0.83 Med: 1.55 Max: 2.72
Current: 2.72
During the past 13 years, HCC Insurance Holdings's highest PS Ratio was 2.72. The lowest was 0.83. And the median was 1.55.
FRA:HCZ's PS Ratio is not ranked
in the Insurance industry.
Industry Median: 1.07
vs FRA:HCZ: 2.72
HCC Insurance Holdings Inc has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of HCC Insurance Holdings was 10.30% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 7.60% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 6.70% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 6.60% per year.
During the past 13 years, HCC Insurance Holdings's highest 3-Year average Revenue per Share Growth Rate was 30.50% per year. The lowest was -0.40% per year. And the median was 9.60% per year.
* 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 HCC Insurance Holdings's PS Ratio
For the Insurance - Property & Casualty subindustry, HCC Insurance Holdings'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.
HCC Insurance Holdings's PS Ratio Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, HCC Insurance Holdings's PS Ratio distribution charts can be found below:
* The bar in red indicates where HCC Insurance Holdings's PS Ratio falls into.
HCC Insurance Holdings 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.
HCC Insurance Holdings's Share Price of today is €70.39. HCC Insurance Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €24.37.
* 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:
HCC Insurance Holdings (FRA:HCZ) 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.
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.
HCC Insurance Holdings PS Ratio Related Terms
Thank you for viewing the detailed overview of HCC Insurance Holdings's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
HCC Insurance Holdings (FRA:HCZ) Business Description
HCC Insurance Holdings Inc was incorporated in the state of Delaware in 1991. The Company provides specialized property and casualty, surety, and group life, accident and health insurance coverages and related agency and reinsurance brokerage services to commercial customers and individuals. It concentrates its activities in selected, narrowly defined, specialty lines of business. The Company has five underwriting segments: U.S. Property & Casualty, Professional Liability, Accident & Health, U.S. Surety & Credit and International. U.S. Property & Casualty segment includes specialty lines of insurance such as aviation, small account errors and omissions liability (E&O), public risk, contingency, disability, title and mortgage reinsurance, residual value, employment practices liability (EPLI), technical property, primary and excess casualty, and brown water marine written in the U.S. The majority of the business is primary coverage, and claims are reported and settled on a short to medium-term basis. Professional Liability segment primarily consists of its directors' and officers' (D&O) liability business. In addition, it write related professional liability and crime business coverages, including large account E&O liability, fiduciary liability, fidelity and bankers blanket bonds, and EPLI for some D&O policyholders. Accident & Health segment includes medical stop-loss, short-term domestic and international medical products, written in the United States. The majority of the business covers groups of employees, and claims are reported and settled quickly. U.S. Surety & Credit segment conducts business through separate specialty surety underwriting operations and credit underwriting operations. International segment includes energy, property treaty, liability, surety, credit, property (direct and facultative), ocean marine, accident and health and other smaller product lines written from operations in the United Kingdom, Spain and Ireland. The Company operates mainly in the United States, the United Kingdom, Spain and Ireland. Some of its operations have a broader international scope. The Company markets its products both directly to customers and through a network of independent and affiliated brokers, producers, agents and third party administrators. Its insurance companies are risk-bearing and focus their underwriting activities on providing insurance and/or reinsurance in the following lines of business: Diversified financial products; Group life, accident and health; Aviation; London market account and other specialty lines. The Company's underwriting agencies underwrite on behalf of its insurance companies and in certain situations for other unaffiliated insurance companies. The agencies specialize in the following types of business: contingency; directors' and officers' liability; individual disability; kidnap and ransom; employment practices liability; errors and omissions liability; public entity; various financial products
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