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Ally Financial (XTER:GMZ) PS Ratio : 1.32 (As of May. 29, 2024)


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What is Ally Financial 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, Ally Financial's share price is €35.475. Ally Financial's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was €26.92. Hence, Ally Financial's PS Ratio for today is 1.32.

Warning Sign:

Ally Financial Inc stock PS Ratio (=1.31) is close to 1-year high of 1.38

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

XTER:GMZ' s PS Ratio Range Over the Past 10 Years
Min: 0.63   Med: 1.5   Max: 2.64
Current: 1.31

During the past 13 years, Ally Financial's highest PS Ratio was 2.64. The lowest was 0.63. And the median was 1.50.

XTER:GMZ's PS Ratio is ranked better than
76.3% of 519 companies
in the Credit Services industry
Industry Median: 3.08 vs XTER:GMZ: 1.31

Ally Financial's Revenue per Sharefor the three months ended in Mar. 2024 was €6.56. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was €26.92.

Warning Sign:

Ally Financial 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 Ally Financial was -2.50% per year. During the past 3 years, the average Revenue per Share Growth Rate was 14.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 14.30% per year. During the past 10 years, the average Revenue per Share Growth Rate was 7.80% per year.

During the past 13 years, Ally Financial's highest 3-Year average Revenue per Share Growth Rate was 16.20% per year. The lowest was -35.80% per year. And the median was 1.80% per year.

Back to Basics: PS Ratio


Ally Financial PS Ratio Historical Data

The historical data trend for Ally Financial'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.

Ally Financial PS Ratio Chart

Ally Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.65 1.80 1.98 0.84 1.17

Ally Financial Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 Premium Member Only 0.85 0.89 0.88 1.17 1.39

Competitive Comparison of Ally Financial's PS Ratio

For the Credit Services subindustry, Ally Financial'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.


Ally Financial's PS Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Ally Financial's PS Ratio distribution charts can be found below:

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



Ally Financial 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.

Ally Financial's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=35.475/26.919
=1.32

Ally Financial's Share Price of today is €35.475.
Ally Financial's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €26.92.

* 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.


Ally Financial  (XTER:GMZ) 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.


Ally Financial PS Ratio Related Terms

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Ally Financial (XTER:GMZ) Business Description

Traded in Other Exchanges
Address
500 Woodward Avenue, Floor 10, Ally Detroit Center, Detroit, MI, USA, 48226
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, personal loans, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.