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Toast (TOST) PS Ratio : 4.67 (As of Dec. 11, 2024)


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What is Toast 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, Toast's share price is $38.285. Toast's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $8.20. Hence, Toast's PS Ratio for today is 4.67.

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

TOST' s PS Ratio Range Over the Past 10 Years
Min: 2.07   Med: 3.44   Max: 22.29
Current: 4.7

During the past 5 years, Toast's highest PS Ratio was 22.29. The lowest was 2.07. And the median was 3.44.

TOST's PS Ratio is ranked worse than
69.03% of 2735 companies
in the Software industry
Industry Median: 2.35 vs TOST: 4.70

Toast's Revenue per Sharefor the three months ended in Sep. 2024 was $2.21. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $8.20.

During the past 12 months, the average Revenue per Share Growth Rate of Toast was 20.40% per year. During the past 3 years, the average Revenue per Share Growth Rate was 59.60% per year.

During the past 5 years, Toast's highest 3-Year average Revenue per Share Growth Rate was 59.60% per year. The lowest was 54.70% per year. And the median was 57.15% per year.

Back to Basics: PS Ratio


Toast PS Ratio Historical Data

The historical data trend for Toast'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.

Toast PS Ratio Chart

Toast Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
- - 5.90 3.38 2.52

Toast Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 2.75 2.52 3.26 3.26 3.45

Competitive Comparison of Toast's PS Ratio

For the Software - Infrastructure subindustry, Toast'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.


Toast's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Toast's PS Ratio distribution charts can be found below:

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



Toast 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.

Toast's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=38.285/8.204
=4.67

Toast's Share Price of today is $38.285.
Toast'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 $8.20.

* 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.


Toast  (NYSE:TOST) 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.


Toast PS Ratio Related Terms

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


Toast Business Description

Traded in Other Exchanges
Address
401 Park Drive, Suite 801, Boston, MA, USA, 02215
Toast is a us-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 127,000 restaurant locations across the United States as of September 2024. The firm generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, from loan origination and servicing fees from its Toast Capital arm, and from hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform, processing some $126 billion in gross platform volume in 2023. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, reservation management, and loyalty programs.
Executives
David Yuan director 250 MIDDLEFIELD RD, MENLO PARK CA 94025
Christopher P Comparato director, officer: Chief Executive Officer TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215
Richard Kent Bennett director 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Susan Chapman-hughes director 535 DEAN STREET, APT. 910, BROOKLYN NY 11217
Brian R Elworthy officer: General Counsel TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215
Elena Gomez officer: Chief Financial Officer TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215
Aman Narang director, officer: See Remarks TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215
Stephen Fredette director, officer: Co-President TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215
James Michael Matlock officer: Principal Accounting Officer TOAST, INC., 401 PARK DRIVE, BOSTON MA 02215
Bessemer Venture Partners Ix L.p. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Mark J Hawkins director C/O LOGITECH, INC., 6505 KAISER DRIVE, FREMONT CA 94555
Technology Investment Dining Group, Llc 10 percent owner 18 BANK STREET, LEBANON NH 03766
Jonathan Grimm 10 percent owner, officer: Chief Technology Officer TOAST, INC., 401 PARK DRIVE, SUITE 801, BOSTON MA 02215
Paul D Bell director C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Hmi Capital Management, L.p. 10 percent owner 555 CALIFORNIA STREET, SUITE 4900, SAN FRANCISCO CA 94104