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, Snap's share price is $11.31.
Snap's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $3.13. Hence, Snap's PS Ratio for today is 3.61.
The historical rank and industry rank for Snap's PS Ratio or its related term are showing as below:
SNAP'
s PS Ratio Range Over the Past 10 Years
Min: 2.72 Med: 13.38 Max: 71.67
Current: 3.63
During the past 9 years, Snap's highest PS Ratio was 71.67. The lowest was 2.72. And the median was 13.38.
SNAP's PS Ratio is ranked worse than 70.23% of 561
companies
in the Interactive Media industry
Industry Median: 1.76
vs SNAP: 3.63
Snap's Revenue per Sharefor the
three
months ended in Sep. 2024 was $0.83.
Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $3.13.
Warning Sign:
Snap Inc revenue growth has slowed down over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Snap was 10.00% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 18.40% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 28.00% per year.
During the past 9 years, Snap's highest 3-Year average Revenue per Share Growth Rate was 150.20% per year. The lowest was 18.40% per year. And the median was 38.60% per year.
Back to Basics: PS Ratio
Snap PS Ratio Historical Data
The historical data trend for Snap'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 Internet Content & Information subindustry, Snap'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.
Snap's PS Ratio Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Snap's PS Ratio distribution charts can be found below:
* The bar in red indicates where Snap's PS Ratio falls into.
Snap 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.
Snap's Share Price of today is $11.31. Snap's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.13.
* 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.
Snap PS Ratio Related Terms
Thank you for viewing the detailed overview of Snap's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Snap is a technology company best known for its marquis social media application Snapchat, a visual messaging application that has amassed hundreds of millions of users. The app was initially only used to communicate with family and friends through photographs and short videos (known as "Snaps"). Users can now enjoy augmented reality, or AR, lenses, content from famous creators and celebrities, updates about local events, and more. Although the app offers a paid subscription option with premium features, advertising sales produce most of the app's revenue. The firm also sells wearable devices called AR Spectacles, which can capture photos and videos overlayed with AR lenses, but these make up a small portion of Snap's overall sales.
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