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NovoCure (NovoCure) PS Ratio : 3.88 (As of Jun. 24, 2024)


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What is NovoCure 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, NovoCure's share price is $19.07. NovoCure's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $4.92. Hence, NovoCure's PS Ratio for today is 3.88.

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

NVCR' s PS Ratio Range Over the Past 10 Years
Min: 2.34   Med: 15.48   Max: 88.85
Current: 3.88

During the past 11 years, NovoCure's highest PS Ratio was 88.85. The lowest was 2.34. And the median was 15.48.

NVCR's PS Ratio is ranked worse than
57.89% of 805 companies
in the Medical Devices & Instruments industry
Industry Median: 3.07 vs NVCR: 3.88

NovoCure's Revenue per Sharefor the three months ended in Mar. 2024 was $1.29. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $4.92.

Warning Sign:

NovoCure Ltd revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of NovoCure was -1.10% per year. During the past 3 years, the average Revenue per Share Growth Rate was 1.80% per year. During the past 5 years, the average Revenue per Share Growth Rate was 12.30% per year. During the past 10 years, the average Revenue per Share Growth Rate was 42.00% per year.

During the past 11 years, NovoCure's highest 3-Year average Revenue per Share Growth Rate was 110.30% per year. The lowest was 1.80% per year. And the median was 33.45% per year.

Back to Basics: PS Ratio


NovoCure PS Ratio Historical Data

The historical data trend for NovoCure'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.

NovoCure PS Ratio Chart

NovoCure Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.32 38.11 14.51 14.27 3.12

NovoCure Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 12.09 8.62 3.39 3.12 3.18

Competitive Comparison of NovoCure's PS Ratio

For the Medical Devices subindustry, NovoCure'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.


NovoCure's PS Ratio Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, NovoCure's PS Ratio distribution charts can be found below:

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



NovoCure 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.

NovoCure's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=19.07/4.92
=3.88

NovoCure's Share Price of today is $19.07.
NovoCure'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 $4.92.

* 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.


NovoCure  (NAS:NVCR) 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.


NovoCure PS Ratio Related Terms

Thank you for viewing the detailed overview of NovoCure's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


NovoCure (NovoCure) Business Description

Traded in Other Exchanges
Address
Grenville Street, No. 4 The Forum, Second Floor, St. Helier, JEY, JE2 4UF
NovoCure Ltd serves in the healthcare sector of the United States. Its business involves the development, manufacture and commercialization of Tumor Treating Fields (TTFields) devices, including Optune and Optune Lua, for the treatment of solid tumor cancers. Its pipeline consists of Ovarian Cancer, Pancreatic Cancer, Non-Small Cell Lung Cancer, and Brain Metastasis. Products are comprised of two main components: electric field generator and arrays and related accessories. NovoCure derives its major revenues in the United States.
Executives
Pritesh Shah officer: Chief Commercial Officer C/O NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Michal Nath Puri officer: Chief Human Resources Officer BUSINESS VILLAGE D4, PARK 6/PLATZ10, ROOT V8 6039
Wilhelmus Cm Groenhuysen officer: Chief Financial Officer C/O NAVTEQ CORPORATION, 222 MERCHANDISE MART STE 900, CHICAGO IL 60654
Ashley Cordova officer: Chief Financial Officer 20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
Arye Barak Ben officer: General Counsel TOPAZ BUILDING, 4TH FLOOR, MATAM CENTER, PO BOX 15022, SH'AR HACARMEL, HAIFA L3 31905
Timothy J Scannell director 2825 AIRVIEW BOULEVARD, KALAMAZOO MI 49002
Kristin Stafford director 1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
Frank X Leonard officer: President, CNS Cancers US 20 VALLEY STREAM PARKWAY,, SUITE 300, MALVERN PA 19355
William Patrick Burke officer: Chief Human Resources Officer 195 COMMERCE WAY, PORTSMOUTH NH 03801
Uri Weinberg officer: Chief Innovation Officer NOVOCURE INC., 20 VALLEY STREAM PARKWAY, SUITE 300, MALVERN PA 19355
Allyson J Ocean director 1550 LIBERTY RIDGE DRIVE, SUITE 115, WAYNE PA 19087
Asaf Danziger director, officer: Chief Executive Officer 5 NACHUM CHAT ST., TIRAT HACARMEL L3 5112302
Ely Benaim officer: Chief Medical Officer C/O REXAHN PHARMACEUTICALS, INC., 15245 SHADY GROVE ROAD, SUITE 455, ROCKVILLE MD 20850
William F Doyle director, 10 percent owner
Jeryl L Hilleman director C/O INTERSECT ENT, INC., 1555 ADAMS DRIVE, MENLO PARK CA 94025

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