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Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co PS Ratio Related Terms
Hangzhou TianMuShan Pharmaceutical Enterprise Co PS Ratio Historical Data
* 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co PS Ratio Chart
Hangzhou TianMuShan Pharmaceutical Enterprise Co Annual Data
* 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co PS Ratio vs Drug Manufacturers Industry
Hangzhou TianMuShan Pharmaceutical Enterprise Co 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.
Hangzhou TianMuShan Pharmaceutical Enterprise Co's Share Price of today is ¥20.40. Hangzhou TianMuShan Pharmaceutical Enterprise Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥1.67.
* 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:
Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) has a PS Ratio of 12.19 as of Jul. 21, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Hangzhou TianMuShan Pharmaceutical Enterprise Co and its competitors. This is 60% above median its historical median of 7.62. Over the past decade, Hangzhou TianMuShan Pharmaceutical Enterprise Co's PS Ratio has ranged from 2.94 to 41.86. According to the industry distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #856 out of 952 companies in the Drug Manufacturers industry, placing it in the top 89.9%.
Is Hangzhou TianMuShan Pharmaceutical Enterprise Co's PS Ratio too high?
Hangzhou TianMuShan Pharmaceutical Enterprise Co's current PS Ratio of 12.19 is 60% above median its 10-year median of 7.62. Over the past 10 years, this metric has ranged from a low of 2.94 to a high of 41.86. The Drug Manufacturers industry median PS Ratio is 2.30. Hangzhou TianMuShan Pharmaceutical Enterprise Co's value of 12.19 is 430% above this industry median. Based on the distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #856 out of 952 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Hangzhou TianMuShan Pharmaceutical Enterprise Co has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou TianMuShan Pharmaceutical Enterprise Co's PS Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hangzhou TianMuShan Pharmaceutical Enterprise Co ranks #856 out of 952 companies for PS Ratio. This places Hangzhou TianMuShan Pharmaceutical Enterprise Co in the lower half of its industry. The industry median PS Ratio is 2.30. Hangzhou TianMuShan Pharmaceutical Enterprise Co's value of 12.19 is 430% above this benchmark. Historically, Hangzhou TianMuShan Pharmaceutical Enterprise Co's own PS Ratio has ranged from 2.94 to 41.86 over the past decade. While the company's 10-year median is 7.62 vs. the industry median of 2.30, Hangzhou TianMuShan Pharmaceutical Enterprise Co 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 Drug Manufacturers company?
The median PS Ratio among Drug Manufacturers companies is 2.30, based on 952 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. Hangzhou TianMuShan Pharmaceutical Enterprise Co's current PS Ratio of 12.19 is 430% 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co and its competitors. For the Drug Manufacturers industry, the median PS Ratio is 2.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou TianMuShan Pharmaceutical Enterprise Co's current PS Ratio is 12.19, which is 60% above median its own 10-year median of 7.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou TianMuShan Pharmaceutical Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.02, compared to a current price of ¥20.40 — trading 35.8% above its estimated fair value. The current PS Ratio is 12.19, which is 60% above median its 10-year median of 7.62 and 430% above the Drug Manufacturers industry median of 2.30. Hangzhou TianMuShan Pharmaceutical Enterprise Co's overall GF Score™ is 51/100 with 10 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671), the current PS Ratio is 12.19 as of Jul. 21, 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 Hangzhou TianMuShan Pharmaceutical Enterprise Co (SHSE:600671) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou TianMuShan Pharmaceutical Enterprise Co stock appears to be overvalued.
The current stock price of ¥20.40 is trading 35.8% above its estimated GF Value™ of ¥15.02.
GuruFocus considers Hangzhou TianMuShan Pharmaceutical Enterprise Co to be Significantly Overvalued.
Key valuation signals for SHSE:600671:
PS Ratio: 12.19 (60% above median its 10-year median of 7.62)
GF Value™: ¥15.02 vs. price of ¥20.40 (35.8% above fair value)
Industry Position: 430% above the Drug Manufacturers median (#856 of 952)
No single metric tells the full story. See the SHSE:600671 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou TianMuShan Pharmaceutical Enterprise Co Business Description
Hangzhou TianMuShan Pharmaceutical Enterprise Co Ltd is engaged in producing proprietary Chinese medicines, biopharmaceuticals, healthy foods, medical equipment, and other medicines in China.
51GF Score
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