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Paragon Banking Group (LSE:PAG) PS Ratio : 4.25 (As of May. 22, 2024)


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What is Paragon Banking 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, Paragon Banking Group's share price is £7.60. Paragon Banking Group's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 was £1.79. Hence, Paragon Banking Group's PS Ratio for today is 4.25.

Warning Sign:

Paragon Banking Group PLC stock PS Ratio (=4.19) is close to 2-year high of 4.19

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

LSE:PAG' s PS Ratio Range Over the Past 10 Years
Min: 1.63   Med: 4.35   Max: 7.24
Current: 4.26

During the past 13 years, Paragon Banking Group's highest PS Ratio was 7.24. The lowest was 1.63. And the median was 4.35.

LSE:PAG's PS Ratio is ranked worse than
81.22% of 1454 companies
in the Banks industry
Industry Median: 2.415 vs LSE:PAG: 4.26

Paragon Banking Group's Revenue per Sharefor the six months ended in Sep. 2023 was £1.17. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 was £1.79.

Warning Sign:

Paragon Banking Group PLC revenue per share is in decline over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Paragon Banking Group was -27.20% per year. During the past 3 years, the average Revenue per Share Growth Rate was 13.50% per year. During the past 5 years, the average Revenue per Share Growth Rate was 13.50% per year. During the past 10 years, the average Revenue per Share Growth Rate was 13.60% per year.

During the past 13 years, Paragon Banking Group's highest 3-Year average Revenue per Share Growth Rate was 95.00% per year. The lowest was -66.40% per year. And the median was 9.75% per year.

Back to Basics: PS Ratio


Paragon Banking Group PS Ratio Historical Data

The historical data trend for Paragon Banking 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.

Paragon Banking Group PS Ratio Chart

Paragon Banking Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.16 2.75 3.94 1.63 2.78

Paragon Banking Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 3.94 - 1.63 - 2.78

Competitive Comparison of Paragon Banking Group's PS Ratio

For the Mortgage Finance subindustry, Paragon Banking 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.


Paragon Banking Group's PS Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Paragon Banking Group's PS Ratio distribution charts can be found below:

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



Paragon Banking 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.

Paragon Banking Group's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=7.60/1.788
=4.25

Paragon Banking Group's Share Price of today is £7.60.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Paragon Banking Group's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 was £1.79.

* 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.


Paragon Banking Group  (LSE:PAG) 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.


Paragon Banking Group PS Ratio Related Terms

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Paragon Banking Group (LSE:PAG) Business Description

Traded in Other Exchanges
Address
51 Homer Road, Solihull, West Midlands, GBR, B91 3QJ
Paragon Banking Group PLC, is a specialty finance company that provides diversified banking services to clients. The company operates two core businesses: Mortgages Lending and Commercial Lending. The Mortgages Lending includes the Group's buy-to-let, and owner-occupied first and second charge lending and related activities. Commercial Lending, includes the Group's equipment and motor finance leasing activities, together with development finance, structured lending and other offerings targeted towards SME customers.