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, ERG SPA's share price is €24.34.
ERG SPA's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was €5.00. Hence, ERG SPA's PS Ratio for today is 4.87.
Good Sign:
ERG SPA stock PS Ratio (=4.87) is close to 2-year low of 4.61
The historical rank and industry rank for ERG SPA's PS Ratio or its related term are showing as below:
MIL:ERG'
s PS Ratio Range Over the Past 10 Years
Min: 0.24 Med: 2.57 Max: 9.44
Current: 4.87
During the past 13 years, ERG SPA's highest PS Ratio was 9.44. The lowest was 0.24. And the median was 2.57.
ERG SPA's Revenue per Sharefor the
three
months ended in Mar. 2024 was €1.50.
Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was €5.00.
Warning Sign:
ERG SPA revenue per share has been in decline for the last 5 years.
During the past 12 months, the average Revenue per Share Growth Rate of ERG SPA was 3.80% per year.
During the past 3 years, the average Revenue per Share Growth Rate was -4.70% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -8.40% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -10.90% per year.
During the past 13 years, ERG SPA's highest 3-Year average Revenue per Share Growth Rate was 16.80% per year. The lowest was -46.50% per year. And the median was -4.50% per year.
Back to Basics: PS Ratio
ERG SPA PS Ratio Historical Data
The historical data trend for ERG SPA'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 Utilities - Renewable subindustry, ERG SPA'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.
ERG SPA's PS Ratio Distribution in the Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, ERG SPA's PS Ratio distribution charts can be found below:
* The bar in red indicates where ERG SPA's PS Ratio falls into.
ERG SPA 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.
ERG SPA's Share Price of today is €24.34. ERG SPA's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €5.00.
* 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.
ERG SPA PS Ratio Related Terms
Thank you for viewing the detailed overview of ERG SPA's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ERG SPA produces electricity from clean, renewable, and sustainable sources. The company produces wind power, and electricity as a hydroelectric operator to markets across Europe. Electricity is also generated from natural gas operations located in Italy. ERG's wind power production is handled by subsidiary ENG Renew that focuses on developing, building, and operating wind assets. Hydropower and natural gas operations are split off into ERG Power Generation. The company's hydro assets include plants, dams, reservoirs, and a pumping station. Natural gas production contributes the most revenue for ERG, and is churned out from a cogeneration plant that produces electricity and steam. Electricity from the plant is either fed into Italy's national grid or used to power other industrial plants.
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