Switch to:
SPDR S&P 500  (ARCA:SPY) PS Ratio: (As of Today)

As of today, SPDR S&P 500's share price is \$249.39. SPDR S&P 500 does not have enough years/quarters to calculate the Revenue per Share for the trailing twelve months (TTM) ended in . 20. Therefore GuruFocus does not calculate P/S Ratio at this moment.

SPDR S&P 500's Revenue per Sharefor the six months ended in . 20 was \$0.00.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

SPDR S&P 500 Annual Data

 PS Ratio

SPDR S&P 500 Semi-Annual Data

 PS Ratio

Competitive Comparison
* 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.

Calculation

The P/S Ratio is another ratio widely used to value stocks. It was first used by Ken Fisher.

SPDR S&P 500's P/S Ratio for today is calculated as

 P/S Ratio = Share Price / Revenue per Share (TTM) = 249.39 / =

It can also be calculated from the numbers for the whole company:

 P/E Ratio = Market Cap (M) / Revenue

The revenue here is for the trailing 12 months.

Explanation

The P/S 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 P/S ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The P/S ratio is a great valuation tool for evaluating cyclical businesses where the P/E 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 P/S 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 Price/Earnings ratio and Price/Cash Flow or Price/Free Cash Flow, the P/E ratio measures the valuation based on the earning power of the company. This is where it is different from Price/Book ratio, which measures the valuation based on the company's balance sheet.

Be Aware

The P/S 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.

Related Terms

From the Internet

###### Hurricane Adjusted Initial Jobless Claims Week September 9

- Seekingalpha 2017-09-21 17:12:58

###### Investor Returns Vs Market Returns Failure Endures

- Seekingalpha 2017-09-21 17:07:18

###### Jobless Claims Continue Amaze

- Seekingalpha 2017-09-21 17:02:08

###### Economic Snapshot 19 Indicators Signaling Good Good Economy

- Seekingalpha 2017-09-21 16:46:46

###### Bulls Gone Soft

- Seekingalpha 2017-09-21 12:41:21

###### Netflix Portfolio Update

- Seekingalpha 2017-09-21 11:59:15

###### Good News Americas C Suite Confident

- Seekingalpha 2017-09-21 11:50:30

###### Bubble Investors Least Expect

- Seekingalpha 2017-09-21 10:54:14

###### Daily State Markets Will Qt Usher Great Bond Bear

- Seekingalpha 2017-09-21 09:43:07

###### Conventional Fund Investors Seek Safe Havens August Aps Opportunistic

- Seekingalpha 2017-09-21 07:33:15

###### Crude Oil Set Top

- Seekingalpha 2017-09-21 07:00:13

###### Wall Street Breakfast Fed Sets Stage Next Rate Hike

- Seekingalpha 2017-09-21 06:15:48

###### Quick Take Quantitative Tightening Announcement

- Seekingalpha 2017-09-21 05:18:09

###### Market Held 1929 Valuations Prospect Tax Cuts

- Seekingalpha 2017-09-21 05:10:52

###### Fed Begin Cut Stimulus

- Seekingalpha 2017-09-21 04:25:52

###### Will Take Another Fall

- Seekingalpha 2017-09-21 04:17:32

###### Fed Mission

- Seekingalpha 2017-09-21 04:09:16

###### Day Ahead Top 3 Things Watch

- Seekingalpha 2017-09-21 02:05:55

###### Fed Moves Unwind Balance Sheet Fedwatch Odds December Hike

- Seekingalpha 2017-09-20 20:58:16

###### Wti Hedgers Aggressively Buying Upside Protection

- Seekingalpha 2017-09-20 20:34:04

###### Heisenberg Cool Uncle

- Seekingalpha 2017-09-20 20:13:11

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)