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, Thoratec's share price is €55.92.
Thoratec's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2015 was €7.45. Hence, Thoratec's PS Ratio for today is 7.51.
Warning Sign:
Thoratec Corp stock P/S Ratio (=7.27) is close to 10-year high of 7.27
The historical rank and industry rank for Thoratec's PS Ratio or its related term are showing as below:
FRA:TL1'
s PS Ratio Range Over the Past 10 Years
Min: 2.7 Med: 4.47 Max: 7.27
Current: 7.27
During the past 13 years, Thoratec's highest PS Ratio was 7.27. The lowest was 2.70. And the median was 4.47.
FRA:TL1's PS Ratio is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 3.22
vs FRA:TL1: 7.27
Thoratec Corp revenue growth has slowed down over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Thoratec was 1.30% 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 6.90% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 10.50% per year.
During the past 13 years, Thoratec's highest 3-Year average Revenue per Share Growth Rate was 71.80% per year. The lowest was -2.20% per year. And the median was 14.20% per year.
Back to Basics: PS Ratio
Thoratec PS Ratio Historical Data
The historical data trend for Thoratec'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.
For the Medical Devices subindustry, Thoratec'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.
Thoratec's PS Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Thoratec's PS Ratio distribution charts can be found below:
* The bar in red indicates where Thoratec's PS Ratio falls into.
Thoratec 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.
Thoratec's Share Price of today is €55.92. Thoratec'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 €7.45.
* 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.
Thoratec PS Ratio Related Terms
Thank you for viewing the detailed overview of Thoratec's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Thoratec Corporation incorporated in the State of California in 1976 provides mechanical circulatory support with a product portfolio to treat the full range of clinical needs for advanced heart failure patients. It develops, manufactures and markets proprietary medical devices used for circulatory support. Following the sale of ITC in 2010, the Company has one operating segment: Cardiovascular group. This segment is organized and operates to develop and manufacture mechanical circulatory products to support the cardiovascular systems of humans. The Company's VAD products primarily serve patients suffering from late-stage HF. HF is a chronic disease that occurs when degeneration of the heart muscle reduces the pumping power of the heart, causing the heart to become too weak to pump blood at a level sufficient to meet the body's demands. Hospitals that perform open heart surgery and heart transplants are the potential customers for its Thoratec and HeartMate products. The Company estimates that it sells into 293 of these centers. According to the Company's estimates, it is in approximately 149 centers in the United States and 144 centers internationally. Competition from medical device companies and medical device divisions of healthcare companies, pharmaceutical companies and gene- and cell-based therapies is intense and is expected to increase. It therefore continues to expect new competitors both from the pharmacological and the medical device space. Among the medical device competitors are Aachen Innovative Solutions GmbH, AbioMed, Inc., Berlin Heart GmbH, HeartWare International Inc., Jarvik Heart, Inc., Maquet Cardiovascular, LLC (a division of Getinge AB), MicroMed Technology, Inc., Sun Medical Technology Research Corporation, SynCardia Systems, Inc., and Terumo Heart, Inc. All of the Company's proposed products will require regulatory approval prior to commercialization. In particular, medical devices are subject to rigorous pre-clinical testing as a condition of approval by the FDA and by similar authorities in foreign countries.
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