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Graco (GGG) PS Ratio

: 7.02 (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, Graco's share price is $89.49. Graco's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $12.75. Hence, Graco's PS Ratio for today is 7.02.

Warning Sign:

Graco Inc stock PS Ratio (=6.92) is close to 2-year high of 7.4

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

GGG' s PS Ratio Range Over the Past 10 Years
Min: 2.97   Med: 4.98   Max: 7.91
Current: 7.03

During the past 13 years, Graco's highest PS Ratio was 7.91. The lowest was 2.97. And the median was 4.98.

GGG's PS Ratio is ranked worse than
90.54% of 2970 companies
in the Industrial Products industry
Industry Median: 1.62 vs GGG: 7.03

Graco's Revenue per Sharefor the three months ended in Dec. 2023 was $3.30. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $12.75.

Warning Sign:

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

During the past 12 months, the average Revenue per Share Growth Rate of Graco was 2.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 9.90% per year. During the past 5 years, the average Revenue per Share Growth Rate was 7.10% per year. During the past 10 years, the average Revenue per Share Growth Rate was 7.80% per year.

During the past 13 years, Graco's highest 3-Year average Revenue per Share Growth Rate was 19.50% per year. The lowest was -6.70% per year. And the median was 8.70% per year.

Back to Basics: PS Ratio


Graco PS Ratio Historical Data

The historical data trend for Graco'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.

Graco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.42 7.54 7.08 5.43 6.80

Graco Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 5.43 5.77 6.79 5.74 6.80

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Graco'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.


Graco PS Ratio Distribution

For the Industrial Products industry and Industrials sector, Graco's PS Ratio distribution charts can be found below:

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



Graco 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.

Graco's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=89.49/12.75
=7.02

Graco's Share Price of today is $89.49.
Graco'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 $12.75.

* 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.


Graco  (NYSE:GGG) 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.


Graco PS Ratio Related Terms

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


Graco (GGG) Business Description

Traded in Other Exchanges
Address
88-11th Avenue Northeast, Minneapolis, MN, USA, 55413
Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.1 billion in sales and $573 million in operating income in 2022.
Executives
Mark W Sheahan officer: VICE PRESIDENT AND TREASURER P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Angela F Wordell officer: Executive VP, Operations 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Kathryn L Schoenrock officer: Executive Vice President 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Caroline M Chambers officer: Vice President and Controller PO BOX 1441, MINNEAPOLIS MN 55440-1441
Eric Etchart director ROOM F, 22F CROSS REGION PLAZA, 899 LINGLING ROAD, SHANGHAI F4 200030
Van Sant R William director PO BOX 1441, MINNEAPOLIS MN 55440-1441
Timothy R White officer: President, EMEA 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Ronita Banerjee officer: EVP, Chief HR Officer 88 11TH AVENUE NE, MINNEAPOLIS MN 55105
Jeffrey P. Johnson officer: Vice President 88 - 11TH AVENUE N.E., MINNEAPOLIS MN 55413
Heather L Anfang director 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Dale D Johnson officer: VICE PRESIDENT P.O. BOX 1441, MINNEAPOLIS MN 5440-1441
Christopher D. Knutson officer: EVP, Corporate Controller 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Claudio Merengo officer: President, Worldwide Gema 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
J Kevin Gilligan director P O BOX 1441, MINNEAPOLIS MN 55440-1441
Archie C. Black director 333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402