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, Bandwidth's share price is $22.01.
Bandwidth's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $24.50. Hence, Bandwidth's PS Ratio for today is 0.90.
Warning Sign:
Bandwidth Inc stock PS Ratio (=0.88) is close to 1-year high of 0.91
The historical rank and industry rank for Bandwidth's PS Ratio or its related term are showing as below:
BAND'
s PS Ratio Range Over the Past 10 Years
Min: 0.42 Med: 4.04 Max: 15.54
Current: 0.92
During the past 9 years, Bandwidth's highest PS Ratio was 15.54. The lowest was 0.42. And the median was 4.04.
BAND's PS Ratio is ranked better than 76.61% of 2749
companies
in the Software industry
Industry Median: 2.27
vs BAND: 0.92
Bandwidth Inc revenue growth has slowed down over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Bandwidth was 10.50% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 18.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 21.10% per year.
During the past 9 years, Bandwidth's highest 3-Year average Revenue per Share Growth Rate was 26.50% per year. The lowest was -2.30% per year. And the median was 13.20% per year.
Back to Basics: PS Ratio
Bandwidth PS Ratio Historical Data
The historical data trend for Bandwidth'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.
For the Software - Infrastructure subindustry, Bandwidth'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.
Bandwidth's PS Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Bandwidth's PS Ratio distribution charts can be found below:
* The bar in red indicates where Bandwidth's PS Ratio falls into.
Bandwidth 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.
Bandwidth's Share Price of today is $22.01. Bandwidth'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 $24.50.
* 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 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.
Bandwidth PS Ratio Related Terms
Thank you for viewing the detailed overview of Bandwidth's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Bandwidth Inc is cloud-based communications platform-as-a-service (CPaaS) provider that enables enterprises to create, scale and operate voice or messaging communications services across any mobile application or connected device. Company earns revenue through the sale of communications services offered through Application Programming Interface software solutions to large as well as small and medium-sized business, customers and is generally derived from usage and service fees. Usage revenue includes voice communication (driven by inbound and outbound minutes and toll-free minutes) and messaging communication (driven by the number of messages) that traverse the platform and network. Service fees include the provision and management of phone numbers and emergency services access.
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