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PPD (PPD) PS Ratio : 2.88 (As of May. 05, 2024)


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What is PPD 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, PPD's share price is $47.28. PPD's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2021 was $16.40. Hence, PPD's PS Ratio for today is 2.88.

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

PPD' s PS Ratio Range Over the Past 10 Years
Min: 1.15   Med: 2.73   Max: 3.29
Current: 2.88

During the past 5 years, PPD's highest PS Ratio was 3.29. The lowest was 1.15. And the median was 2.73.

PPD's PS Ratio is not ranked
in the Drug Manufacturers industry.
Industry Median: 2.21 vs PPD: 2.88

PPD's Revenue per Sharefor the three months ended in Sep. 2021 was $4.34. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2021 was $16.40.

During the past 12 months, the average Revenue per Share Growth Rate of PPD was 28.20% per year. During the past 3 years, the average Revenue per Share Growth Rate was 13.60% per year.

During the past 5 years, PPD's highest 3-Year average Revenue per Share Growth Rate was 13.60% per year. The lowest was 12.90% per year. And the median was 13.25% per year.

Back to Basics: PS Ratio


PPD PS Ratio Historical Data

The historical data trend for PPD'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.

PPD PS Ratio Chart

PPD Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20
PS Ratio
- - - - 2.53

PPD Quarterly Data
Dec16 Dec17 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 2.89 2.53 2.69 2.97 2.85

Competitive Comparison of PPD's PS Ratio

For the Drug Manufacturers - Specialty & Generic subindustry, PPD'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.


PPD's PS Ratio Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, PPD's PS Ratio distribution charts can be found below:

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



PPD 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.

PPD's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=47.28/16.399
=2.88

PPD's Share Price of today is $47.28.
PPD's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $16.40.

* 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.


PPD  (NAS:PPD) 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.


PPD PS Ratio Related Terms

Thank you for viewing the detailed overview of PPD's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


PPD (PPD) Business Description

Traded in Other Exchanges
N/A
Address
929 North Front Street, Wilmington, NC, USA, 28401
PPD is a global contract research organization that provides clinical trial and laboratory services to pharmaceutical, device, and diagnostic firms. The clinical development services segment offers outsourced trial services, spanning early- and late-stage trials, as well as peri- and post-approval trials, and the laboratory services segment includes both advanced lab testing and central lab services. The company was taken private in 2011 and went public again in 2020.. Thermo Fisher Scientific announced it will acquire PPD for $17.4 billion, which is scheduled to close by the end of 2021.
Executives
H&f Corporate Investors Viii, Ltd. 10 percent owner 415 MISSION STREET, SUITE 5700, SAN FRANCISCO CA 94105
H&f Corporate Investors Vii, Ltd. 10 percent owner 415 MISSION STREET, SUITE 5700, SAN FRANCISCO CA 94105
David Michael Johnston officer: See Remarks C/O PPD, INC. 929 NORTH FRONT STREET WILMINGTON NC 28401
David S Simmons director, officer: Chief Executive Officer PFIZER INC. ATTN. CORP. SECRETARY, 235 EAST 42ND STREET, NEW YORK NY 10017
Glen Donovan officer: Chief Accounting Officer C/O PPD, INC. 929 NORTH FRONT STREET WILMINGTON NC 28401
Ronald E Garrow officer: See Remarks 2000 PURCHASE STREET, PURCHASE NY 10577
Karen Kaucic officer: See Remarks C/O PPD, INC. 929 NORTH FRONT STREET WILMINGTON NC 28401
Judd Hartman officer: See Remarks 3124 DEVER COURT WILMINGTON NC 28411
Jill Pellegrino officer: SVP & General Manager of AES C/O PPD, INC. 929 NORTH FRONT STREET WILMINGTON NC 28401
H&f Executives Vii, L.p. 10 percent owner ONE MARITIME PLAZA 12TH FLOOR SAN FRANCISCO CA 94111
Hellman & Friedman Investors Viii, L.p. 10 percent owner 415 MISSION STREET, SUITE 5700, SAN FRANCISCO CA 94105
P. Hunter Philbrick director C/O HELLMAN & FRIEDMAN INVESTORS, ONE MARTIME PLAZA, 12TH FLOOR, SAN FRANCISCO CA 94111
Carlyle Partners Vi Holdings Ii, L.p. 10 percent owner C/O THE CARLYLE GROUP, SUITE 220 SOUTH 1001 PENNSYLVANIA AVENUE, N.W. WASHINGTON DC 20004
Tc Group Vi, L.l.c. 10 percent owner C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA ANVENE, N.W., WASHINGTON DC 20004
Tc Group Vi, L.p. 10 percent owner C/O THE CARLYLE GROUP, SUITE 220 SOUTH, 1001 PENNSYLVANIA AVENUE, N.W., WASHINGTON DC 20004