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, Legg Mason's share price is $49.99.
Legg Mason's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2020 was $32.69. Hence, Legg Mason's PS Ratio for today is 1.53.
Warning Sign:
Legg Mason Inc stock PS Ratio (=1.43) is close to 5-year high of 1.55
The historical rank and industry rank for Legg Mason's PS Ratio or its related term are showing as below:
LM'
s PS Ratio Range Over the Past 10 Years
Min: 0.7 Med: 1.42 Max: 2.8
Current: 1.43
During the past 13 years, Legg Mason's highest PS Ratio was 2.80. The lowest was 0.70. And the median was 1.42.
LM's PS Ratio is not ranked
in the Asset Management industry.
Industry Median: 8.26
vs LM: 1.43
Legg Mason Inc revenue growth has slowed down over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Legg Mason was 0.80% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 4.20% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 6.90% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 10.90% per year.
During the past 13 years, Legg Mason's highest 3-Year average Revenue per Share Growth Rate was 39.50% per year. The lowest was -22.00% per year. And the median was 9.10% per year.
Back to Basics: PS Ratio
Legg Mason PS Ratio Historical Data
The historical data trend for Legg Mason'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.
For the Asset Management subindustry, Legg Mason'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.
Legg Mason's PS Ratio Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Legg Mason's PS Ratio distribution charts can be found below:
* The bar in red indicates where Legg Mason's PS Ratio falls into.
Legg Mason 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.
Legg Mason's Share Price of today is $49.99. Legg Mason's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $32.69.
* 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.
Legg Mason PS Ratio Related Terms
Thank you for viewing the detailed overview of Legg Mason's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Legg Mason provides investment management services for institutional and individual investors. The firm had $783.4 billion in managed assets at the end of June, spread among its equity (25% of total AUM), fixed-income (57%), alternatives (9%), and money market (9%) investment platforms. Legg Mason uses a multiaffiliate business model, with its single- largest affiliate, Western Asset Management, accounting for more than 60% of managed assets. Other major affiliates include ClearBridge Investments (more than 15% of AUM), Brandywine (less than 10%), and Clarion Partners (less than 10%). The remaining affiliates--Martin Currie, Royce & Associates, EnTrustPermal, QS Investors, and RARE Infrastructure--each account for 2% or less of Legg Mason's managed assets.
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