Medibank Private (ASX:MPL) PS Ratio

Medibank Private Annual Data
	Trend	Jun15	Jun16	Jun17	Jun18	Jun19	Jun20	Jun21	Jun22	Jun23
PS Ratio						1.42	1.21	1.24	1.26	1.29

Medibank Private Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
PS Ratio															-	1.26	-	1.29	-

For the Insurance - Specialty subindustry, Medibank Private'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.

For the Insurance industry and Financial Services sector, Medibank Private's PS Ratio distribution charts can be found below:

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

Medibank Private 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.

Medibank Private's PS Ratio for today is calculated as

Medibank Private's Share Price of today is A$3.59.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Medibank Private's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$2.86.

* 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 Revenue here is for the trailing 12 months.

Medibank Private  (ASX:MPL) 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.

Medibank Private PS Ratio Related Terms

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

Medibank Private (ASX:MPL) Business Description