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L'Oreal (L'Oreal) PS Ratio : 5.60 (As of Apr. 24, 2024)


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What is L'Oreal PS Ratio?

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, L'Oreal's share price is $93.41. L'Oreal's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $16.67. Hence, L'Oreal's PS Ratio for today is 5.60.

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

LRLCY' s PS Ratio Range Over the Past 10 Years
Min: 3.17   Med: 4.49   Max: 8.54
Current: 5.69

During the past 13 years, L'Oreal's highest PS Ratio was 8.54. The lowest was 3.17. And the median was 4.49.

LRLCY's PS Ratio is ranked worse than
91.3% of 1861 companies
in the Consumer Packaged Goods industry
Industry Median: 0.93 vs LRLCY: 5.69

L'Oreal's Revenue per Sharefor the six months ended in Dec. 2023 was $8.37. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $16.67.

Good Sign:

L'Oreal SA has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of L'Oreal was 7.80% per year. During the past 3 years, the average Revenue per Share Growth Rate was 15.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 10.20% per year. During the past 10 years, the average Revenue per Share Growth Rate was 7.00% per year.

During the past 13 years, L'Oreal's highest 3-Year average Revenue per Share Growth Rate was 15.40% per year. The lowest was 1.10% per year. And the median was 6.20% per year.

Back to Basics: PS Ratio


L'Oreal PS Ratio Historical Data

The historical data trend for L'Oreal'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.

L'Oreal PS Ratio Chart

L'Oreal 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 4.97 6.24 7.23 4.69 5.88

L'Oreal Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 7.23 - 4.69 - 5.88

Competitive Comparison of L'Oreal's PS Ratio

For the Household & Personal Products subindustry, L'Oreal'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.


L'Oreal's PS Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, L'Oreal's PS Ratio distribution charts can be found below:

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



L'Oreal 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.

L'Oreal's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=93.41/16.672
=5.60

L'Oreal's Share Price of today is $93.41.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. L'Oreal's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $16.67.

* 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.


L'Oreal  (OTCPK:LRLCY) 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.


L'Oreal PS Ratio Related Terms

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


L'Oreal (L'Oreal) Business Description

Address
41, Rue Martre, Clichy Cedex, Paris, FRA, 92117
Founded in 1909, L'Oreal has grown into the largest beauty company in the world, participating in categories including skincare (40% of 2022 sales), makeup (20%), haircare (27%), fragrance (9%), and sanitary products (4%). The firm also has a diversified geographic footprint, generating 32% of sales in its home market of Western Europe, 25% from North America, 19% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oreal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancome, Yves Saint Laurent, Maybelline, Kiehl's, L'Oreal Paris, Kerastase, CeraVe, Garnier, and Armani.

L'Oreal (L'Oreal) Headlines

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