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Northrop Grumman PS Ratio

: 2.12 (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, Northrop Grumman's share price is $470.79. Northrop Grumman's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $221.56. Hence, Northrop Grumman's PS Ratio for today is 2.12.

Warning Sign:

Northrop Grumman Corp stock PS Ratio (=2.14) is close to 3-year high of 2.2

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

NOC' s PS Ratio Range Over the Past 10 Years
Min: 0.55   Med: 1.55   Max: 2.4
Current: 2.13

During the past 13 years, Northrop Grumman's highest PS Ratio was 2.40. The lowest was 0.55. And the median was 1.55.

NOC's PS Ratio is ranked worse than
52.63% of 285 companies
in the Aerospace & Defense industry
Industry Median: 2.06 vs NOC: 2.13

Northrop Grumman's Revenue per Sharefor the three months ended in Jun. 2022 was $56.42. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $221.56.

Warning Sign:

Northrop Grumman Corp revenue per share is in decline over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Northrop Grumman was -2.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 8.70% per year. During the past 5 years, the average Revenue per Share Growth Rate was 11.30% per year. During the past 10 years, the average Revenue per Share Growth Rate was 9.90% per year.

During the past 13 years, Northrop Grumman's highest 3-Year average Revenue per Share Growth Rate was 25.70% per year. The lowest was -8.30% per year. And the median was 5.40% per year.

Back to Basics: PS Ratio


Northrop Grumman PS Ratio Historical Data

The historical data trend for Northrop Grumman'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.

Northrop Grumman Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.07 1.42 1.73 1.39 1.75

Northrop Grumman Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 1.58 1.75 2.02 2.16

Competitive Comparison

For the Aerospace & Defense subindustry, Northrop Grumman'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.

   

Northrop Grumman PS Ratio Distribution

For the Aerospace & Defense industry and Industrials sector, Northrop Grumman's PS Ratio distribution charts can be found below:

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



Northrop Grumman 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.

Northrop Grumman's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=470.79/221.564
=2.12

Northrop Grumman's Share Price of today is $470.79.
Northrop Grumman's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $221.56.

* 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.


Northrop Grumman  (NYSE:NOC) 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.


Northrop Grumman PS Ratio Related Terms

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Northrop Grumman Business Description

Northrop Grumman logo
Address
2980 Fairview Park Drive, Falls Church, VA, USA, 22042
Northrop Grumman is a defense contractor that is diversified across short-cycle and long-cycle businesses. The firm's segments include aeronautics, mission systems, defense services, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces various piloted and autonomous flight systems. Mission systems creates a variety of sensors and processors for defense hardware. The defense systems segment is a mix between a long-range missile manufacturer and a defense IT service provider. Finally, the company's space systems segment produces various space structures, sensors, and satellites.
Executives
Bromberg Matthew Fox officer: CVP, Global Operations 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Wilson Thomas L Jr officer: CVP and Pres. Space Systems 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Robinson Graham director 1000 STANLEY DRIVE NEW BRITAIN CT 06053
Jones Thomas H officer: CVP & Pres Aeronautics Systems 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Abney David P director 55 GLENLAKE PARWAY, NE ATLANTA GA 30328
Brown Marianne Catherine director 4094 TIMUQUANA ROAD JACKSONVILLE FL 33210-8571
Keffer David F officer: CVP & Chief Financial Officer 3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Petryszyn Mary D officer: CVP, Pres, Defense Systems 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Bush Wesley G director, officer: Chairman 333 MAPLE AVENUE EAST #3080 VIENNA VA 22180
Ryan Lucy C officer: Corp VP, Communications 2980 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Addison Ann M officer: Corporate Vice President 11951 FREEDOM DRIVE RESTON VA 20190
Larson Blake E officer: Vice President, other: Corp VP & Pres, NGIS 5050 LINCOLN DRIVE EDINA MN 55436
Kalan Lesley A officer: Corp VP, Government Relations 805 VASSAR ROAD ALEXANDRIA VA 22314
Purvis Shawn N officer: CVP, President, Enterprise Svc 9672 CRECY LANE MANASSAS VA 20110
Pamiljans Janis G officer: Corp VP & President AS Systems 212 LANSING ISLAND DRIVE INDIAN HARBOUR BEACH FL 32937

Northrop Grumman Headlines

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