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Virtusa (Virtusa) PS Ratio : 1.24 (As of Apr. 26, 2024)


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What is Virtusa 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, Virtusa's share price is $51.325. Virtusa's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2020 was $41.33. Hence, Virtusa's PS Ratio for today is 1.24.

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

VRTU's PS Ratio is not ranked *
in the Software industry.
Industry Median: 2.24
* Ranked among companies with meaningful PS Ratio only.

Virtusa's Revenue per Sharefor the three months ended in Dec. 2020 was $10.21. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2020 was $41.33.

Back to Basics: PS Ratio


Virtusa PS Ratio Historical Data

The historical data trend for Virtusa'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.

Virtusa PS Ratio Chart

Virtusa Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.87 1.06 1.40 1.31 0.66

Virtusa Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
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 1.09 0.66 0.78 1.20 1.24

Competitive Comparison of Virtusa's PS Ratio

For the Information Technology Services subindustry, Virtusa'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.


Virtusa's PS Ratio Distribution in the Software Industry

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

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



Virtusa 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.

Virtusa's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=51.325/41.331
=1.24

Virtusa's Share Price of today is $51.325.
Virtusa's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2020 adds up the quarterly data reported by the company within the most recent 12 months, which was $41.33.

* 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.


Virtusa  (NAS:VRTU) 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.


Virtusa PS Ratio Related Terms

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


Virtusa (Virtusa) Business Description

Traded in Other Exchanges
N/A
Address
132 Turnpike Road, Suite 300, Southborough, MA, USA, 01772
Virtusa Corp provides a range of information technology, or IT, services. The company organizes its services into three categories: business and IT consulting, technology implementation, and application outsourcing. The business and IT consulting services include IT assessment and planning, network architecture and design, and governance-related services. Technology implementation services include application development, legacy asset management, information management, and testing. Application outsourcing services include application and platform management, infrastructure management, and software quality assurance management. The company generates the majority of revenue from North America.
Executives
Patricia Morrison director ONE BAXTER PARKWAY, DEERFIELD IL 60015
Ranjan Kalia officer: EVP & Chief Financial Officer C/O VIRTUSA CORPORATION 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Abidali Neemuchwala director C/O VIRTUSA CORPORATION, 132 TURNPIKE RD, STE. 300, SOUTHBOROUGH MA 01772
Sundararajan Narayanan officer: EVP, CPO and Global Head of HR C/O VIRTUSA CORPORATION 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Samir Dhir officer: President & Head of Americas C/O VIRTUSA CORPORATION 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Kris A Canekeratne director, officer: Chairman & CEO 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Thomas R Holler officer: EVP and CSO 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Roger Keith Modder officer: EVP, COO & MD EMEA 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Rowland T Moriarty director 2000 WEST PARK DRIVE WESTBOROUGH MA 01581
Orogen Holdings Llc director ONE ROCKEFELLER PLAZA, SUITE 2416, NEW YORK NY 10020
Barry R Nearhos director C/O VIRTUSA CORPORATION, 200 WEST PARK DRIVE, WESTBOROUGH MA 01581
Atairos-orogen Holdings, Llc director C/O ATAIROS MANAGEMENT, L.P., 40 MORRIS ROAD, BRYN MAWR PA 19010
Orogen Group Llc director ONE ROCKEFELLER PLAZA, SUITE 2416, NEW YORK NY 10020
Atairos Partners, L.p. director 40 MORRIS AVENUE, BRYN MAWR PA 19010
Atairos Partners Gp, Inc. director 40 MORRIS AVENUE, BRYN MAWR PA 19010

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