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Taylor Wimpey (LSE:TW.) PS Ratio : 1.35 (As of Apr. 27, 2024)


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What is Taylor Wimpey 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, Taylor Wimpey's share price is £1.343. Taylor Wimpey's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was £0.99. Hence, Taylor Wimpey's PS Ratio for today is 1.35.

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

LSE:TW.' s PS Ratio Range Over the Past 10 Years
Min: 0.75   Med: 1.55   Max: 2.48
Current: 1.32

During the past 13 years, Taylor Wimpey's highest PS Ratio was 2.48. The lowest was 0.75. And the median was 1.55.

LSE:TW.'s PS Ratio is ranked worse than
70.48% of 105 companies
in the Homebuilding & Construction industry
Industry Median: 0.86 vs LSE:TW.: 1.32

Taylor Wimpey's Revenue per Sharefor the six months ended in Dec. 2023 was £0.53. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was £0.99.

Warning Sign:

Taylor Wimpey PLC revenue per share has been in decline for the last 5 years.

During the past 12 months, the average Revenue per Share Growth Rate of Taylor Wimpey was -19.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 7.30% per year. During the past 5 years, the average Revenue per Share Growth Rate was -2.70% per year. During the past 10 years, the average Revenue per Share Growth Rate was 3.10% per year.

During the past 13 years, Taylor Wimpey's highest 3-Year average Revenue per Share Growth Rate was 17.00% per year. The lowest was -52.70% per year. And the median was 4.70% per year.

Back to Basics: PS Ratio


Taylor Wimpey PS Ratio Historical Data

The historical data trend for Taylor Wimpey'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.

Taylor Wimpey PS Ratio Chart

Taylor Wimpey 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 1.46 2.06 1.49 0.82 1.48

Taylor Wimpey Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 1.49 - 0.82 - 1.48

Competitive Comparison of Taylor Wimpey's PS Ratio

For the Residential Construction subindustry, Taylor Wimpey'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.


Taylor Wimpey's PS Ratio Distribution in the Homebuilding & Construction Industry

For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Wimpey's PS Ratio distribution charts can be found below:

* The bar in red indicates where Taylor Wimpey's PS Ratio falls into.



Taylor Wimpey 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.

Taylor Wimpey's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=1.343/0.994
=1.35

Taylor Wimpey's Share Price of today is £1.343.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Taylor Wimpey's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was £0.99.

* 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.


Taylor Wimpey  (LSE:TW.) 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.


Taylor Wimpey PS Ratio Related Terms

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Taylor Wimpey (LSE:TW.) Business Description

Traded in Other Exchanges
Address
Turnpike Road, Gate House, High Wycombe, Buckinghamshire, GBR, HP12 3NR
Taylor Wimpey is the U.K.'s second-largest residential property developer by revenue—or third-largest as judged by dwelling completions—and was established via the merger of George Wimpey and Taylor Woodrow in 2007. Taylor Wimpey is vertically integrated through the land development, construction, and sales and marketing segments of the residential property development value chain, aligning with the typical business model employed by U.K. homebuilders. The company also has a nascent homebuilding operation in Spain.

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