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Splunk (Splunk) PS Ratio : 6.67 (As of May. 07, 2024)


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What is Splunk 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, Splunk's share price is $156.90. Splunk's Revenue per Share for the trailing twelve months (TTM) ended in Jan. 2024 was $23.53. Hence, Splunk's PS Ratio for today is 6.67.

Warning Sign:

Splunk Inc stock PS Ratio (=6.53) is close to 1-year high of 6.67

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

SPLK' s PS Ratio Range Over the Past 10 Years
Min: 3.51   Med: 9.93   Max: 32.33
Current: 6.67

During the past 13 years, Splunk's highest PS Ratio was 32.33. The lowest was 3.51. And the median was 9.93.

SPLK's PS Ratio is not ranked
in the Software industry.
Industry Median: 2.3 vs SPLK: 6.67

Splunk's Revenue per Sharefor the three months ended in Jan. 2024 was $7.76. Its Revenue per Share for the trailing twelve months (TTM) ended in Jan. 2024 was $23.53.

Warning Sign:

Splunk Inc revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Splunk was 6.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 19.90% per year. During the past 5 years, the average Revenue per Share Growth Rate was 14.10% per year. During the past 10 years, the average Revenue per Share Growth Rate was 23.30% per year.

During the past 13 years, Splunk's highest 3-Year average Revenue per Share Growth Rate was 42.30% per year. The lowest was -3.50% per year. And the median was 24.25% per year.

Back to Basics: PS Ratio


Splunk PS Ratio Historical Data

The historical data trend for Splunk'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.

Splunk PS Ratio Chart

Splunk Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.00 11.83 7.49 4.26 6.38

Splunk Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 4.26 3.78 4.64 6.29 6.38

Competitive Comparison of Splunk's PS Ratio

For the Software - Infrastructure subindustry, Splunk'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.


Splunk's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Splunk's PS Ratio distribution charts can be found below:

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



Splunk 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.

Splunk's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=156.90/23.527
=6.67

Splunk's Share Price of today is $156.90.
Splunk's Revenue per Share for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $23.53.

* 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.


Splunk  (NAS:SPLK) 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.


Splunk PS Ratio Related Terms

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


Splunk (Splunk) Business Description

Traded in Other Exchanges
Address
270 Brannan Street, San Francisco, CA, USA, 94107
Splunk is a cloud-first software company that focuses on analyzing machine data. The company is a major player in two markets: security, and full-stack monitoring and analysis. The San Francisco-based firm focuses on enterprise clients, with more than 90% of the Fortune 100 using its solutions. The firm's top line consists of the sale of software licenses, cloud subscriptions, and maintenance and support.
Executives
Scott Morgan officer: General Counsel and Secretary C/O SPLUNK INC.,270 BRANNAN STREET, SAN JOSE CA 94107
Christian Smith officer: SVP, Chief Revenue Officer C/O SPLUNK INC., 270 BRANNAN ST CA 94107
Gary Steele director, officer: President and CEO C/O PROOFPOINT, INC., 892 ROSS DRIVE, SUNNYVALE CA 94089
Elisa Steele director 1601 CLOVERFIELD BLVD, STE 620 SOUTH, SANTA MONICA CA 90404
Yamini Rangan director 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Brian Kayman officer: Chief Accounting Officer 270 BRANNAN STREET, SAN FRANCISCO CA 94107
Tom Casey officer: SVP, GM Platform C/O SPLUNK INC., 270 BRANNAN ST CA 94107
Brian Keith Roberts officer: SVP & Chief Financial Officer C/O LYFT, INC., 185 BERRY STREET, SUITE 5000, SAN FRANCISCO CA 94107
Richard P Wallace director KLA TENCOR, 160 RIO ROBLES, SAN JOSE CA 95134
David R Tunnell director C/O HELLMAN & FRIEDMAN, 415 MISSION STREET SUITE 5700, SAN FRANCISCO CA 94105
Jason Child officer: SVP & Chief Financial Officer C/O SPLUNK INC., 270 BRANNAN ST., SAN FRANCISCO CA 94107
Shawn Bice officer: President of PROD & TECH C/O SPLUNK INC., 270 BRANNAN STREET, SAN FRANCISCO CA 94107
Timothy Emanuelson officer: Chief Accounting Officer C/O SPLUNK INC., 270 BRANNAN STREET, SAN FRANCISCO CA 94107
Luis Felipe Visoso director C/O UNITY SOFTWARE INC., 30 3RD STREET, SAN FRANCISCO CA 94103
Graham Smith director 301 BRANNMAN ST, SAN FRANCISCO CA 94107