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Capitec Bank Holdings (JSE:CPI) PS Ratio : 6.93 (As of Apr. 26, 2024)


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What is Capitec Bank Holdings 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, Capitec Bank Holdings's share price is R2162.17. Capitec Bank Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 was R311.81. Hence, Capitec Bank Holdings's PS Ratio for today is 6.93.

Warning Sign:

Capitec Bank Holdings Ltd stock PS Ratio (=8.23) is close to 1-year high of 8.8

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

JSE:CPI' s PS Ratio Range Over the Past 10 Years
Min: 2.12   Med: 6.23   Max: 11.74
Current: 7.5

During the past 13 years, Capitec Bank Holdings's highest PS Ratio was 11.74. The lowest was 2.12. And the median was 6.23.

JSE:CPI's PS Ratio is ranked worse than
94.34% of 1450 companies
in the Banks industry
Industry Median: 2.4 vs JSE:CPI: 7.50

Capitec Bank Holdings's Revenue per Sharefor the six months ended in Feb. 2024 was R162.66. Its Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 was R311.81.

Good Sign:

Capitec Bank Holdings Ltd has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of Capitec Bank Holdings was 17.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 12.80% per year. During the past 5 years, the average Revenue per Share Growth Rate was 11.50% per year. During the past 10 years, the average Revenue per Share Growth Rate was 12.70% per year.

During the past 13 years, Capitec Bank Holdings's highest 3-Year average Revenue per Share Growth Rate was 52.00% per year. The lowest was 9.00% per year. And the median was 16.30% per year.

Back to Basics: PS Ratio


Capitec Bank Holdings PS Ratio Historical Data

The historical data trend for Capitec Bank Holdings'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.

Capitec Bank Holdings PS Ratio Chart

Capitec Bank Holdings Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.12 6.73 8.91 6.69 6.47

Capitec Bank Holdings Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 8.91 - 6.69 - -

Competitive Comparison of Capitec Bank Holdings's PS Ratio

For the Banks - Regional subindustry, Capitec Bank Holdings'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.


Capitec Bank Holdings's PS Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Capitec Bank Holdings's PS Ratio distribution charts can be found below:

* The bar in red indicates where Capitec Bank Holdings's PS Ratio falls into.



Capitec Bank Holdings 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.

Capitec Bank Holdings's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=2162.17/311.813
=6.93

Capitec Bank Holdings's Share Price of today is R2162.17.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Capitec Bank Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 was R311.81.

* 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.


Capitec Bank Holdings  (JSE:CPI) 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.


Capitec Bank Holdings PS Ratio Related Terms

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Capitec Bank Holdings (JSE:CPI) Business Description

Traded in Other Exchanges
Address
5 Neutron Road, Techno Park, Stellenbosch, WC, ZAF, 7600
Capitec Bank Holdings Ltd is a retail bank with more than 850 branches in South Africa. Its services focus on three customer needs: saving, which provides customers the ability to receive and store funds; credit, which satisfies customer needs to access and borrow funds; and transacting, which allows for payments and movement of funds. It operates in three segments: -Retail bank, Business bank, and the Insurance business. Net interest income accounts for more than two-thirds of total company revenue. The company also generates revenue from fees on loans and transactions. Roughly a third of the company's loans are mortgages, and another third are other secured loans. Credit facilities and unsecured credit loans make up most of the remaining loans outstanding.

Capitec Bank Holdings (JSE:CPI) Headlines