Penguin SolutionsPENG -6.72%71 PS Ratio is 2.50 as of Jun. 27, 2026, which is 221% above its 10-year median of 0.78. GuruFocus rates PENG with a GF Score™ of 71/100 and a GF Value™ of $23.84 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,775 Software companies, Penguin Solutions ranks worse than 58.45% on this metric.
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, Penguin Solutions's share price is $62.32.
Penguin Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2026 was $24.93. Hence, Penguin Solutions's PS Ratio for today is 2.50.
Warning Sign:
Penguin Solutions Inc stock PS Ratio (=2.5) is close to 10-year high of 2.69.
The historical rank and industry rank for Penguin Solutions's PS Ratio or its related term are showing as below:
PENG'
s PS Ratio Range Over the Past 10 Years
Min: 0.29 Med: 0.78 Max: 2.69
Current: 2.5
During the past 11 years, Penguin Solutions's highest PS Ratio was 2.69. The lowest was 0.29. And the median was 0.78.
PENG's PS Ratio is ranked worse than 58.45% of 2775
companies
in the Software industry
Industry Median: 2
vs PENG: 2.50
During the past 12 months, the average Revenue per Share Growth Rate of Penguin Solutions was 2.10% per year.
During the past 3 years, the average Revenue per Share Growth Rate was -0.60% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 1.60% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 4.40% per year.
During the past 11 years, Penguin Solutions's highest 3-Year average Revenue per Share Growth Rate was 26.00% per year. The lowest was -8.00% per year. And the median was 0.35% per year.
Back to Basics: PS Ratio
Penguin Solutions (NAS:PENG) 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.
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.
Penguin Solutions PS Ratio Related Terms
Penguin Solutions PS Ratio Historical Data
* Premium members only.
The historical data trend for Penguin Solutions'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 Information Technology Services subindustry, Penguin Solutions'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.
Penguin Solutions PS Ratio vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's PS Ratio distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's PS Ratio falls into.
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.
Penguin Solutions's Share Price of today is $62.32. Penguin Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $24.93.
* 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:
Penguin Solutions (PENG) has a PS Ratio of 2.50 as of Jun. 27, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Penguin Solutions and its competitors. This is 221% above median its historical median of 0.78. Over the past decade, Penguin Solutions' PS Ratio has ranged from 0.29 to 2.69. According to the industry distribution chart, Penguin Solutions ranks #1622 out of 2775 companies in the Software industry, placing it in the top 58.5%.
Is Penguin Solutions' PS Ratio too high?
Penguin Solutions' current PS Ratio of 2.50 is 221% above median its 10-year median of 0.78. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 2.69. The Software industry median PS Ratio is 2.00. Penguin Solutions' value of 2.50 is 25% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1622 out of 2775 companies in the Software industry, which is below the industry midpoint. Overall, Penguin Solutions has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' PS Ratio compare to VNET and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #1622 out of 2775 companies for PS Ratio. This places Penguin Solutions in the lower half of its industry. The industry median PS Ratio is 2.00. Penguin Solutions' value of 2.50 is 25% above this benchmark. Historically, Penguin Solutions' own PS Ratio has ranged from 0.29 to 2.69 over the past decade. While the company's 10-year median is 0.78 vs. the industry median of 2.00, Penguin Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PS Ratio for a Software company?
The median PS Ratio among Software companies is 2.00, based on 2,775 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current PS Ratio of 2.50 is 25% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Penguin Solutions and its competitors. For the Software industry, the median PS Ratio is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current PS Ratio is 2.50, which is 221% above median its own 10-year median of 0.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penguin Solutions stock overvalued right now?
Based on GuruFocus' analysis, Penguin Solutions (PENG) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.84, compared to a current price of $62.32 — trading 161.4% above its estimated fair value. The current PS Ratio is 2.50, which is 221% above median its 10-year median of 0.78 and 25% above the Software industry median of 2.00. Penguin Solutions' overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Penguin Solutions (PENG), the current PS Ratio is 2.50 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Penguin Solutions (PENG) Overvalued in 2026?
Based on GuruFocus' analysis, Penguin Solutions stock appears to be overvalued.
The current stock price of $62.32 is trading 161.4% above its estimated GF Value™ of $23.84.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
PS Ratio: 2.50 (221% above median its 10-year median of 0.78)
GF Value™: $23.84 vs. price of $62.32 (161.4% above fair value)
Industry Position: 25% above the Software median (#1622 of 2775)
No single metric tells the full story. See the PENG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.
71GF Score
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