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Hexaware Technologies (LSE:HEXD) PS Ratio : 1.36 (As of Jun. 22, 2024)


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What is Hexaware Technologies 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, Hexaware Technologies's share price is $1.90. Hexaware Technologies's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2020 was $1.40. Hence, Hexaware Technologies's PS Ratio for today is 1.36.

Warning Sign:

Hexaware Technologies Ltd stock PS Ratio (=2.28) is close to 2-year high of 2.28

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

LSE:HEXD' s PS Ratio Range Over the Past 10 Years
Min: 1.11   Med: 2.11   Max: 7.36
Current: 2.28

During the past 13 years, Hexaware Technologies's highest PS Ratio was 7.36. The lowest was 1.11. And the median was 2.11.

LSE:HEXD's PS Ratio is not ranked
in the Software industry.
Industry Median: 2.22 vs LSE:HEXD: 2.28

Hexaware Technologies's Revenue per Sharefor the three months ended in Sep. 2020 was $0.36. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2020 was $1.40.

Good Sign:

Hexaware Technologies Ltd has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Hexaware Technologies was 17.50% per year. During the past 3 years, the average Revenue per Share Growth Rate was 16.80% per year. During the past 5 years, the average Revenue per Share Growth Rate was 16.00% per year. During the past 10 years, the average Revenue per Share Growth Rate was 18.50% per year.

During the past 13 years, Hexaware Technologies's highest 3-Year average Revenue per Share Growth Rate was 28.80% per year. The lowest was -2.20% per year. And the median was 15.20% per year.

Back to Basics: PS Ratio


Hexaware Technologies PS Ratio Historical Data

The historical data trend for Hexaware 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.

* Premium members only.

Hexaware Technologies PS Ratio Chart

Hexaware Technologies Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.37 1.78 2.60 2.16 1.81

Hexaware Technologies Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 2.17 1.81 1.17 1.64 2.26

Competitive Comparison of Hexaware Technologies's PS Ratio

For the Information Technology Services subindustry, Hexaware 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.


Hexaware Technologies's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Hexaware Technologies's PS Ratio distribution charts can be found below:

* The bar in red indicates where Hexaware Technologies's PS Ratio falls into.



Hexaware 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.

Hexaware Technologies's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=1.90/1.402
=1.36

Hexaware Technologies's Share Price of today is $1.90.
Hexaware Technologies's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.40.

* 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.


Hexaware Technologies  (LSE:HEXD) 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.


Hexaware Technologies PS Ratio Related Terms

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Hexaware Technologies (LSE:HEXD) Business Description

Traded in Other Exchanges
N/A
Address
152 Millennium Business Park, Sector-lll, A Block, TTC Industrial Area, Mahape, Navi Mumbai, Maharashtra, IND, 400710
Hexaware Technologies provides a variety of information technology services, including information technology application consulting, support and maintenance, infrastructure management, business process services, robotic process automation, and customer relationship management. Hexaware is organized into four segments based on customer industry: banking and financial services, travel and transportation, heath and insurance, manufacturing and consumer, and professional services. The banking and financial services segment generates the most revenue. The majority of revenue comes from the United States.

Hexaware Technologies (LSE:HEXD) Headlines

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