This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. New Relic's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2023 was $13.982. New Relic's 10-Year median PS Ratio is 0. Therefore, the Median PS Value for today is $0.00.
As of today (2024-06-09), New Relic's share price is $86.99. New Relic's Median PS Value is $0.00. Therefore, New Relic's Price to Median PS Value for today is 0.00.
The historical rank and industry rank for New Relic's Median PS Value or its related term are showing as below:
NEWR's Price-to-Median-PS-Value is not ranked *
in the Software industry.
Industry Median: 0.95 * Ranked among companies with meaningful Price-to-Median-PS-Value only.
New Relic Median PS Value Historical Data
The historical data trend for New Relic's Median PS Value 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 New Relic's Median PS Value
For the Software - Application subindustry, New Relic's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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.
New Relic's Price-to-Median-PS-Value Distribution in the Software Industry
For the Software industry and Technology sector, New Relic's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where New Relic's Price-to-Median-PS-Value falls into.
New Relic Median PS Value Calculation
New Relic's Median PS Value for today is calculated as
10-Year Median PS Ratio is 0.
New Relic'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 $13.982.
* 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.
New Relic (NYSE:NEWR) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
New Relic's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
86.99
/
0.00
=
* 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.
New Relic Median PS Value Related Terms
Thank you for viewing the detailed overview of New Relic's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
New Relic Inc is a provider of software analytics solutions for organizations to collect, store, and analyze massive amounts of software data in real-time. The firm's flagship New Relic Software Analytics Cloud is made up of a suite of products, a Big Data database, and an open platform. Its solutions include diagnostics, reporting and alerting, transaction monitoring, and performance monitoring capabilities. The firm generates revenue from subscription-based arrangements for software offerings, typically for a year. A majority of the firm's revenue is generated in the United States, and the rest from Europe, the Middle East, and Africa; the Asia-Pacific; and other regions.
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