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Farmers Edge (TSX:FDGE) PS Ratio : 0.56 (As of Apr. 27, 2024)


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What is Farmers Edge 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, Farmers Edge's share price is C$0.35. Farmers Edge's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 was C$0.63. Hence, Farmers Edge's PS Ratio for today is 0.56.

Warning Sign:

Farmers Edge Inc stock PS Ratio (=0.56) is close to 1-year high of 0.56

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

TSX:FDGE' s PS Ratio Range Over the Past 10 Years
Min: 0.16   Med: 0.77   Max: 16.67
Current: 0.56

During the past 6 years, Farmers Edge's highest PS Ratio was 16.67. The lowest was 0.16. And the median was 0.77.

TSX:FDGE's PS Ratio is not ranked
in the Software industry.
Industry Median: 2.24 vs TSX:FDGE: 0.56

Farmers Edge's Revenue per Sharefor the three months ended in Sep. 2023 was C$0.11. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 was C$0.63.

Warning Sign:

Farmers Edge Inc revenue per share is in decline over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Farmers Edge was -26.10% per year. During the past 3 years, the average Revenue per Share Growth Rate was 10.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was 22.20% per year.

During the past 6 years, Farmers Edge's highest 3-Year average Revenue per Share Growth Rate was 47.30% per year. The lowest was 10.10% per year. And the median was 30.40% per year.

Back to Basics: PS Ratio


Farmers Edge PS Ratio Historical Data

The historical data trend for Farmers Edge'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.

Farmers Edge PS Ratio Chart

Farmers Edge Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
PS Ratio
Get a 7-Day Free Trial - - - 3.20 0.35

Farmers Edge Quarterly Data
Dec17 Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 0.83 0.35 0.25 0.30 0.26

Competitive Comparison of Farmers Edge's PS Ratio

For the Software - Application subindustry, Farmers Edge'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.


Farmers Edge's PS Ratio Distribution in the Software Industry

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

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



Farmers Edge 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.

Farmers Edge's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=0.35/0.63
=0.56

Farmers Edge's Share Price of today is C$0.35.
Farmers Edge's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was C$0.63.

* 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.


Farmers Edge  (TSX:FDGE) 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.


Farmers Edge PS Ratio Related Terms

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Farmers Edge (TSX:FDGE) Business Description

Traded in Other Exchanges
Address
25 Rothwell Road, Winnipeg, MB, CAN, R3P 2M5
Farmers Edge Inc provides digital agriculture services. It has two reportable segments which have digital agronomy operations and e-commerce operations. Digital Agronomy Operations offers growers a comprehensive suite of digital agronomy solutions, sold in five key subscription levels and billed annually per acre. The e-commerce business includes the sale of agricultural products through online marketplaces. The majority of the revenue of firms comes from its digital agronomy operations segment.

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