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, Erie Indemnity Co's share price is $381.74.
Erie Indemnity Co's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $65.88. Hence, Erie Indemnity Co's PS Ratio for today is 5.79.
The historical rank and industry rank for Erie Indemnity Co's PS Ratio or its related term are showing as below:
ERIE'
s PS Ratio Range Over the Past 10 Years
Min: 0.71 Med: 4 Max: 14.41
Current: 6.31
During the past 13 years, Erie Indemnity Co's highest PS Ratio was 14.41. The lowest was 0.71. And the median was 4.00.
ERIE's PS Ratio is ranked worse than 94.85% of 485
companies
in the Insurance industry
Industry Median: 1.05
vs ERIE: 6.31
During the past 12 months, the average Revenue per Share Growth Rate of Erie Indemnity Co was 16.10% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 12.90% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 7.90% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 11.40% per year.
During the past 13 years, Erie Indemnity Co's highest 3-Year average Revenue per Share Growth Rate was 63.60% per year. The lowest was -34.00% per year. And the median was 8.10% per year.
Back to Basics: PS Ratio
Erie Indemnity Co PS Ratio Historical Data
The historical data trend for Erie Indemnity Co'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 Erie Indemnity Co's PS Ratio
For the Insurance Brokers subindustry, Erie Indemnity Co'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.
Erie Indemnity Co's PS Ratio Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Erie Indemnity Co's PS Ratio distribution charts can be found below:
* The bar in red indicates where Erie Indemnity Co's PS Ratio falls into.
Erie Indemnity Co 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.
Erie Indemnity Co's Share Price of today is $381.74. Erie Indemnity Co'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 $65.88.
* 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.
Erie Indemnity Co PS Ratio Related Terms
Thank you for viewing the detailed overview of Erie Indemnity Co's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Erie Indemnity Co (Erie Indemnity Co) Business Description
Erie Indemnity Co primarily performs services on behalf of the Erie Insurance Exchange relating to sales, underwriting, and issuance of policies. Erie Indemnity's results are tied to the performance of the Insurance Exchange, which principally provides automobile and homeowners insurance for individuals, along with multiperil, workers' compensation, and commercial automobile insurance for its commercial clients. Erie Indemnity's management fee is typically 25% of the Exchange's premiums, and this accounts for all of Erie Indemnity's revenue. The company operates exclusively in the United States.
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