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Perimeter Solutions (Perimeter Solutions) PS Ratio : 3.61 (As of May. 01, 2024)


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What is Perimeter Solutions 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, Perimeter Solutions's share price is $7.00. Perimeter Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $1.94. Hence, Perimeter Solutions's PS Ratio for today is 3.61.

Warning Sign:

Perimeter Solutions SA stock PS Ratio (=3.67) is close to 1-year high of 4.02

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

PRM' s PS Ratio Range Over the Past 10 Years
Min: 1.72   Med: 4.12   Max: 6.9
Current: 3.6

During the past 5 years, Perimeter Solutions's highest PS Ratio was 6.90. The lowest was 1.72. And the median was 4.12.

PRM's PS Ratio is ranked worse than
78.26% of 1527 companies
in the Chemicals industry
Industry Median: 1.45 vs PRM: 3.60

Perimeter Solutions's Revenue per Sharefor the three months ended in Dec. 2023 was $0.37. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $1.94.

Warning Sign:

Perimeter Solutions SA revenue per share has been in decline over the past 3 years.

During the past 12 months, the average Revenue per Share Growth Rate of Perimeter Solutions was -6.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was -3.60% per year.

During the past 5 years, Perimeter Solutions's highest 3-Year average Revenue per Share Growth Rate was 10.60% per year. The lowest was -3.60% per year. And the median was 3.50% per year.

Back to Basics: PS Ratio


Perimeter Solutions PS Ratio Historical Data

The historical data trend for Perimeter 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.

* Premium members only.

Perimeter Solutions PS Ratio Chart

Perimeter Solutions Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
- - - 4.44 2.38

Perimeter Solutions Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 4.44 4.09 3.31 2.50 2.38

Competitive Comparison of Perimeter Solutions's PS Ratio

For the Specialty Chemicals subindustry, Perimeter 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.


Perimeter Solutions's PS Ratio Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Perimeter Solutions's PS Ratio distribution charts can be found below:

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



Perimeter Solutions 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.

Perimeter Solutions's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=7.00/1.939
=3.61

Perimeter Solutions's Share Price of today is $7.00.
Perimeter Solutions's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.94.

* 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.


Perimeter Solutions  (NYSE:PRM) 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.


Perimeter Solutions PS Ratio Related Terms

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


Perimeter Solutions (Perimeter Solutions) Business Description

Traded in Other Exchanges
Address
12E Rue Guillaume Kroll, Grand Duchy of Luxembourg, LUX, L-1882
Perimeter Solutions SA is a global manufacturer of firefighting products and lubricant additives. The company operates in two business segments namely Fire Safety and Specialty Products. Geographically, the company generates majority of the revenue from United States.
Executives
Khouri Haitham director, officer: Chief Executive Officer C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Tracy Britt Cool director C/O BERKSHIRE HATHAWAY INC., 3555 FARNAM STREET, OMAHA NE 68131
Windacre Partnership Master Fund, Lp 10 percent owner 2200 POST OAK BLVD., SUITE 1580, HOUSTON TX 77056
Charles W. Kropp officer: Chief Financial Officer C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Jeffrey Emery officer: President - Global Fire Safety C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Iversen Bernt G Ii director CHAMPION AEROSPACE INC, 1230 OLD NORRIS ROAD, LIBERTY SC 29657
Kevin M Stein director TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114
Edward D. Goldberg director, officer: Chief Executive Officer C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Windacre Partnership Llc 10 percent owner 2200 POST OAK BOULEVARD, SUITE 1580, HOUSTON TX 77056
Snehal Amin 10 percent owner 2200 POST OAK BLVD., SUITE 1580, HOU TX 77056
Sean P Hennessy director C/O THE SHERWIN WILLIAMS CO, 101 PROSPECT AVE NW, CLEVELAND OH 44115
Windacre General Partner Lp 10 percent owner 2200 POST OAK BLVD., SUITE 1580, HOUSTON TX 77056
Kremling Ernest C. Ii officer: Chief Operating Officer 9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Noriko Yokozuka officer: General Counsel C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000
Stephen Cornwall officer: Chief Commercial Officer C/O PERIMETER SOLUTIONS, SA, 12E RUE GUILLAUME KROLL L1882 LUXEMBOURG, GRAND DUCHY N4 00000