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ADT (ADT) PS Ratio

: 1.01 (As of Today)
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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, ADT's share price is $6.19. ADT's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $6.11. Hence, ADT's PS Ratio for today is 1.01.

Warning Sign:

ADT Inc stock PS Ratio (=1.13) is close to 1-year high of 1.19

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

ADT' s PS Ratio Range Over the Past 10 Years
Min: 0.56   Med: 1.24   Max: 2.11
Current: 1.01

During the past 10 years, ADT's highest PS Ratio was 2.11. The lowest was 0.56. And the median was 1.24.

ADT's PS Ratio is ranked better than
51.55% of 1065 companies
in the Business Services industry
Industry Median: 1.08 vs ADT: 1.01

ADT's Revenue per Sharefor the three months ended in Dec. 2023 was $1.34. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $6.11.

Warning Sign:

ADT Inc 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 ADT was -4.50% per year. During the past 3 years, the average Revenue per Share Growth Rate was -7.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was -3.90% per year.

During the past 10 years, ADT's highest 3-Year average Revenue per Share Growth Rate was 104.70% per year. The lowest was -7.10% per year. And the median was 5.80% per year.

Back to Basics: PS Ratio


ADT PS Ratio Historical Data

The historical data trend for ADT'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.

ADT Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.16 1.15 1.65 1.59 1.25

ADT Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PS Ratio 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 Premium Member Only Premium Member Only Premium Member Only 1.59 1.15 0.96 0.96 1.25

Competitive Comparison

For the Security & Protection Services subindustry, ADT'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.


ADT PS Ratio Distribution

For the Business Services industry and Industrials sector, ADT's PS Ratio distribution charts can be found below:

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



ADT 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.

ADT's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=6.19/6.11
=1.01

ADT's Share Price of today is $6.19.
ADT's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.11.

* 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.


ADT  (NYSE:ADT) 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.


ADT PS Ratio Related Terms

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


ADT (ADT) Business Description

Traded in Other Exchanges
Address
1501 Yamato Road, Boca Raton, FL, USA, 33431
ADT Inc is a provider of monitored security, interactive home and business automation, and related monitoring services in the United States and Canada. It offers residential, commercial, and multi-site customers a comprehensive set of burglary, video, access control, fire and smoke alarm, and medical alert solutions. The company segments include Consumer and Small Business (CSB), Commercial, and Solar. It generates maximum revenue from the Commercial segment.
Executives
David A. Scott officer: EVP, Chief People & Admin. Off 9601 S. MERIDIAN BLVD., ENGLEWOOD CO 80112
Marques Coleman director 1501 YAMATO ROAD, BOCA RATON FL 33431
Nicole Bonsignore director 1501 YAMATO ROAD, BOCA RATON FL 33431
Wayne Thorsen officer: EVP, Chief Business Officer 3892 RONDA ROAD, PEBBLE BEACH CA 93953
Delu Jackson officer: EVP, Chief Marketing Officer 650 TENNIS CLUB DRIVE, APT. L107, FORT LAUDERDALE FL 33311
Jamie Elizabeth Haenggi officer: SVP, Chief Sales & Mktg. Off. 1501 YAMATO ROAD, BOCA RATON FL 33431
Kenneth Porpora officer: SVP, Chief Growth Officer 1501 YAMATO ROAD, BOCA RATON FL 33431
James David Devries officer: President ALLSTATE INSURANCE COMPANY, 2775 SANDERS ROAD, NORTHBROOK IL 60062
Donald M. Young officer: SVP & Chief Info Off. 1501 YAMATO ROAD, BOCA RATON FL 33431
David W Smail officer: EVP, CLO and Secretary 1501 YAMATO ROAD, BOCA RATON FL 33431
Daniel Bresingham officer: EVP, Chief Admin. Off. & Treas 1501 YAMATO ROAD, BOCA RATON FL 33431
State Farm Mutual Automobile Insurance Co 10 percent owner ONE STATE FARM PLAZA, BLOOMINGTON IL 61710
Paul Joseph Smith director ONE STATE FARM PLAZA E-12, BLOOMINGTON IL 61710-0001
Lewis William M Jr director 9 WEST 57TH STREET, NEW YORK NY 10019
Benjamin Honig director 1501 YAMATO ROAD, BOCA RATON FL 33431

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