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, 2U's share price is $0.265.
2U's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $11.69. Hence, 2U's PS Ratio for today is 0.02.
Good Sign:
2U Inc stock PS Ratio (=0.02) is close to 10-year low of 0.02
The historical rank and industry rank for 2U's PS Ratio or its related term are showing as below:
TWOU'
s PS Ratio Range Over the Past 10 Years
Min: 0.02 Med: 3.47 Max: 15.81
Current: 0.02
During the past 13 years, 2U's highest PS Ratio was 15.81. The lowest was 0.02. And the median was 3.47.
TWOU's PS Ratio is ranked better than 99.62% of 263
companies
in the Education industry
Industry Median: 1.5
vs TWOU: 0.02
2U's Revenue per Sharefor the
three
months ended in Dec. 2023 was $3.11.
Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $11.69.
Warning Sign:
2U Inc revenue per share is in decline over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of 2U was -6.10% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 0.50% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 9.80% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 19.80% per year.
During the past 13 years, 2U's highest 3-Year average Revenue per Share Growth Rate was 52.80% per year. The lowest was 0.50% per year. And the median was 25.25% per year.
Back to Basics: PS Ratio
2U PS Ratio Historical Data
The historical data trend for 2U'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 Education & Training Services subindustry, 2U'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.
2U's PS Ratio Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, 2U's PS Ratio distribution charts can be found below:
* The bar in red indicates where 2U's PS Ratio falls into.
2U 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.
2U's Share Price of today is $0.265. 2U'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 $11.69.
* 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.
2U PS Ratio Related Terms
Thank you for viewing the detailed overview of 2U's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
2U Inc provides educational technology services for nonprofit colleges and universities. It builds, delivers, and monitors educational platforms that enable online delivery of degree programs and alternative credentials such as short technical courses. The company provides cloud-based software-as-a-service platform and various technology-enabled services such as learning technology, live class application monitoring, content development, marketing, among others that help its clients to reach students globally. It is organized in two reportable business segments: Degree Program segment and Alternative Credential segment. The vast majority of revenue comes from the company's Degree Program segment, and most of the company's revenue is earned in the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TWOU has been successfully added to your 