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, iRhythm Technologies's share price is $111.27.
iRhythm Technologies's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $16.14. Hence, iRhythm Technologies's PS Ratio for today is 6.90.
The historical rank and industry rank for iRhythm Technologies's PS Ratio or its related term are showing as below:
IRTC'
s PS Ratio Range Over the Past 10 Years
Min: 4.19 Med: 10.66 Max: 28.94
Current: 7.12
During the past 10 years, iRhythm Technologies's highest PS Ratio was 28.94. The lowest was 4.19. And the median was 10.66.
IRTC's PS Ratio is ranked worse than 74.97% of 807
companies
in the Medical Devices & Instruments industry
Industry Median: 3.19
vs IRTC: 7.12
During the past 12 months, the average Revenue per Share Growth Rate of iRhythm Technologies was 17.50% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 19.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 20.10% per year.
During the past 10 years, iRhythm Technologies's highest 3-Year average Revenue per Share Growth Rate was 43.80% per year. The lowest was -11.20% per year. And the median was 21.30% per year.
Back to Basics: PS Ratio
iRhythm Technologies PS Ratio Historical Data
The historical data trend for iRhythm Technologies'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.
Competitive Comparison of iRhythm Technologies's PS Ratio
For the Medical Devices subindustry, iRhythm Technologies'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.
iRhythm Technologies's PS Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, iRhythm Technologies's PS Ratio distribution charts can be found below:
* The bar in red indicates where iRhythm Technologies's PS Ratio falls into.
iRhythm Technologies 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.
iRhythm Technologies's Share Price of today is $111.27. iRhythm Technologies'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 $16.14.
* 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:
iRhythm Technologies (NAS:IRTC) 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.
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.
iRhythm Technologies PS Ratio Related Terms
Thank you for viewing the detailed overview of iRhythm Technologies's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
iRhythm Technologies (iRhythm Technologies) Business Description
iRhythm Technologies Inc is a commercial-stage digital healthcare company redefining the way cardiac arrhythmias are clinically diagnosed by combining wearable biosensing technology with cloud-based data analytics and machine-learning capabilities. The company's portfolio include ambulatory cardiac monitoring services on a platform, called the Zio service, which combines an easy-to-wear and unobtrusive biosensor that can be worn for up to 14 consecutive days with powerful proprietary algorithms that distill data from millions of heartbeats into clinically actionable information. The company derived its revenue from the United States.
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