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, ReadyTech Holdings's share price is A$3.35.
ReadyTech Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$0.96. Hence, ReadyTech Holdings's PS Ratio for today is 3.51.
Good Sign:
ReadyTech Holdings Ltd stock PS Ratio (=3.66) is close to 3-year low of 3.45
The historical rank and industry rank for ReadyTech Holdings's PS Ratio or its related term are showing as below:
ASX:RDY'
s PS Ratio Range Over the Past 10 Years
Min: 2.1 Med: 4.07 Max: 7.51
Current: 3.51
During the past 5 years, ReadyTech Holdings's highest PS Ratio was 7.51. The lowest was 2.10. And the median was 4.07.
ASX:RDY's PS Ratio is ranked worse than 63.73% of 2749
companies
in the Software industry
Industry Median: 2.27
vs ASX:RDY: 3.51
During the past 5 years, ReadyTech Holdings's highest 3-Year average Revenue per Share Growth Rate was 22.80% per year. The lowest was 16.00% per year. And the median was 19.40% per year.
Back to Basics: PS Ratio
ReadyTech Holdings PS Ratio Historical Data
The historical data trend for ReadyTech Holdings'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.
Competitive Comparison of ReadyTech Holdings's PS Ratio
For the Software - Application subindustry, ReadyTech Holdings'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.
ReadyTech Holdings's PS Ratio Distribution in the Software Industry
For the Software industry and Technology sector, ReadyTech Holdings's PS Ratio distribution charts can be found below:
* The bar in red indicates where ReadyTech Holdings's PS Ratio falls into.
ReadyTech Holdings 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.
ReadyTech Holdings's Share Price of today is A$3.35.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. ReadyTech Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$0.96.
* 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:
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.
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.
ReadyTech Holdings PS Ratio Related Terms
Thank you for viewing the detailed overview of ReadyTech Holdings's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Education segment. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments and justice departments.
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