GURUFOCUS.COM » STOCK LIST » USA » NYSE » Toast Inc (NYSE:TOST) » Definitions » PS Ratio
Switch to:

Toast PS Ratio

: 3.35 (As of Today)
View and export this data going back to 2021. Start your Free Trial

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, Toast's share price is $16.56. Toast's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2022 was $4.95. Hence, Toast's PS Ratio for today is 3.35.

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

TOST' s PS Ratio Range Over the Past 10 Years
Min: 2.65   Med: 4.51   Max: 14.7
Current: 3.35

During the past 3 years, Toast's highest PS Ratio was 14.70. The lowest was 2.65. And the median was 4.51.

TOST's PS Ratio is ranked worse than
58.23% of 2672 companies
in the Software industry
Industry Median: 2.71 vs TOST: 3.35

Toast's Revenue per Sharefor the three months ended in Mar. 2022 was $1.06. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2022 was $4.95.

During the past 12 months, the average Revenue per Share Growth Rate of Toast was 199.80% per year.

Back to Basics: PS Ratio


Toast PS Ratio Historical Data

The historical data trend for Toast'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.

Toast Annual Data
Trend Dec19 Dec20 Dec21
PS Ratio
- - 5.90

Toast Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
PS Ratio Premium Member Only Premium Member Only Premium Member Only - - 12.44 5.90 4.39

Competitive Comparison

For the Software - Infrastructure subindustry, Toast'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.

   

Toast PS Ratio Distribution

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

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



Toast 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.

Toast's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=16.56/4.947
=3.35

Toast's Share Price of today is $16.56.
Toast's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.95.

* 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.


Toast  (NYSE:TOST) 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.


Toast PS Ratio Related Terms

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


Toast Business Description

Toast logo
Traded in Other Exchanges
Address
401 Park Drive, Suite 801, Boston, MA, USA, 02215
Toast is a U.S.-based restaurant technology company that provides point-of-sale, payment processing, and various software services to 57,000 restaurant locations across the United States. The firm generates sales from software subscription fees, as a percentage take rate from each financial transaction it processes, and from hardware installation and professional services. Unlike competitors, Toast intermediates every payment transaction on its platform, processing some $57 billion in gross platform volume in 2021. The firm's product offerings span point-of-sale systems, inventory and payroll management, delivery integration, e-commerce ordering, and loyalty programs.
Executives
Grimm Jonathan 10 percent owner, officer: Chief Technology Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Hmi Capital Partners, L.p. 10 percent owner C/O HMI CAPITAL, LLC 555 CALIFORNIA STREET, SUITE 4900 SAN FRANCISCO CA 94104
Hmi Capital Management, L.p. 10 percent owner 555 CALIFORNIA STREET SUITE 4900 SAN FRANCISCO CA 94104
Koplow Hilarie A. director C/O NEW RELIC, INC. 188 SPEAR STREET, STE. 1200 SAN FRANCISCO CA 94105
Matlock James Michael officer: Principal Accounting Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Fmr Llc 10 percent owner, other: See Remark 1 245 SUMMER STREET BOSTON MA 02210
Tcv X Member Fund, L.p. other: May be part of a 13(d) group 250 MIDDLEFIELD ROAD MENLO PARK CA 94025
Technology Investment Dining Group, Llc 10 percent owner 18 BANK STREET LEBANON NH 03766
Bell Paul D director C/O DELL INC. ONE DELL WAY ROUND ROCK TX 78682-2244
Bessemer Venture Partners Century Fund Institutional L.p. 10 percent owner 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Bessemer Venture Partners Century Fund L.p. 10 percent owner 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Papa Steve 10 percent owner C/O DESKTOP METAL, INC. 63 THIRD AVENUE BURLINGTON MA 01803
Bennett Richard Kent director 1865 PALMER AVENUE SUITE 104 LARCHMONT NY 10538
Comparato Christopher P director, officer: Chief Executive Officer TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215
Fredette Stephen director, officer: Co-President TOAST, INC. 401 PARK DRIVE, SUITE 801 BOSTON MA 02215

Toast Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)