ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. PSAV's annualized net income for the quarter that ended in Mar. 2016 was $27.78 Mil. PSAV's average Total Stockholders Equity over the quarter that ended in Mar. 2016 was $81.94 Mil. Therefore, PSAV's annualized ROE % for the quarter that ended in Mar. 2016 was 33.91%.
The historical rank and industry rank for PSAV's ROE % or its related term are showing as below:
PSAV's ROE % is not ranked *
in the Media - Diversified industry.
Industry Median: 2.47 * Ranked among companies with meaningful ROE % only.
PSAV (NYSE:PSAV) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2016) net income data. The Revenue data used here is four times the quarterly (Mar. 2016) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
PSAV ROE % Related Terms
PSAV ROE % Historical Data
* Premium members only.
The historical data trend for PSAV's ROE % 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.
For the Broadcasting subindustry, PSAV's ROE %, along with its competitors' market caps and ROE % 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.
PSAV ROE % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, PSAV's ROE % distribution charts can be found below:
* The bar in red indicates where PSAV's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2016) net income data.
ROE % is displayed in the 30-year financial page.
PSAV (PSAV) has a ROE % of 33.91% as of Mar. 2016. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PSAV and its competitors.
Is PSAV's ROE % too high?
PSAV's current ROE % is 33.91%. The Media - Diversified industry median ROE % is 2.47. PSAV's value of 33.91% is 1272.9% above this industry median.
How does PSAV's ROE % compare to CRCO and ASKH?
PSAV's ROE % of 33.91% can be compared against companies in the Media - Diversified industry. The industry median ROE % is 2.47. PSAV's value of 33.91% is 1272.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Media - Diversified company?
The median ROE % among Media - Diversified companies is 2.47, based on 958 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PSAV's current ROE % of 33.91% is 1272.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on PSAV and its competitors. For the Media - Diversified industry, the median ROE % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PSAV's current ROE % is 33.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSAV stock overvalued right now?
PSAV (PSAV) has a current ROE % of 33.91%. The current ROE % is 33.91% and 1272.9% above the Media - Diversified industry median of 2.47. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For PSAV (PSAV), the current ROE % is 33.91% as of Mar. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
PSAV Inc was incorporated in Delaware on August 11, 2015. The Company along with its subsidiaries provides event technology services. The Company provides services including audiovisual services, equipment rental, staging and meeting services, communication systems, and related technical support to its customers in various venues, including hotels and convention centers. The Company's Video technology includes front and rear projection from large format HD high lumen projection to boardroom-style projectors, playback systems, image magnification, digital capture, cameras and display systems, including LED displays and video walls; Rigging Solutions include design and installation of permanently installed rig points in meeting venues, day-to-day deployment of rigging systems to safely transform meeting and event spaces for larger and more sophisticated set and lighting designs and certified trainers and inspectors; Wi-Fi Solutions include managing venues' entire network to provide customers secure and reliable wired and wireless solutions; Staging includes collections of custom screens and the ability to provide concert sound, broadcast quality projection, seasoned stage producers, and CAD drawing; Creative Services including Thematic creation, PowerPoint display, video creation, & stage sets; Mobile Device Applications tailored to the specific events that provide the schedule of events, maps, sponsors and detailed information on the host customer; Video Mapping / Simultaneous Translation; Virtual Meetings and Events; Event Consultation and Support, Power Distribution Solutions including streamlining of special event power distribution for event and production power across events, meeting rooms and trade shows; Audio including microphone and sound solutions with digital mixers, wireless microphones, networked audio and proprietary software to control live sound systems; and Lighting including speaker and stage lighting, intelligent lighting and decorative and theatrical lighting through gel lights and LED lights. The Company operates in two segments including Domestic and International. The Domestic segment provides services to customers throughout the United States and Puerto Rico; and is provider of event technology services at approximately over 1,000 hotel properties and other event venues. The International segment provides services to its customers in Canada, Mexico, the Caribbean, Europe and the Middle East, in addition to providing non-venue based services in Asia; and provides event technology services at approximately over 300 international hotel properties and other event venues. The Company's customers include corporations, event organizers, trade associations and meeting planners. The Company faces competition from Freeman Company.
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