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IDP Education (ASX:IEL) PS Ratio : 4.32 (As of May. 04, 2024)


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What is IDP Education 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, IDP Education's share price is A$16.40. IDP Education's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$3.80. Hence, IDP Education's PS Ratio for today is 4.32.

Good Sign:

IDP Education Ltd stock PS Ratio (=4.52) is close to 5-year low of 4.52

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

ASX:IEL' s PS Ratio Range Over the Past 10 Years
Min: 2.74   Med: 7.12   Max: 20.52
Current: 4.32

During the past 8 years, IDP Education's highest PS Ratio was 20.52. The lowest was 2.74. And the median was 7.12.

ASX:IEL's PS Ratio is ranked worse than
77.19% of 263 companies
in the Education industry
Industry Median: 1.51 vs ASX:IEL: 4.32

IDP Education's Revenue per Sharefor the six months ended in Dec. 2023 was A$2.07. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$3.80.

During the past 12 months, the average Revenue per Share Growth Rate of IDP Education was 17.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 16.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was 10.50% per year.

During the past 8 years, IDP Education's highest 3-Year average Revenue per Share Growth Rate was 18.70% per year. The lowest was -0.20% per year. And the median was 14.00% per year.

Back to Basics: PS Ratio


IDP Education PS Ratio Historical Data

The historical data trend for IDP Education'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.

IDP Education PS Ratio Chart

IDP Education Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
PS Ratio
Get a 7-Day Free Trial 7.54 6.86 12.95 8.37 6.27

IDP Education Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 - 8.37 - 6.27 -

Competitive Comparison of IDP Education's PS Ratio

For the Education & Training Services subindustry, IDP Education'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.


IDP Education's PS Ratio Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, IDP Education's PS Ratio distribution charts can be found below:

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



IDP Education 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.

IDP Education's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=16.40/3.795
=4.32

IDP Education's Share Price of today is A$16.40.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. IDP Education's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was A$3.80.

* 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.


IDP Education  (ASX:IEL) 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.


IDP Education PS Ratio Related Terms

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IDP Education (ASX:IEL) Business Description

Traded in Other Exchanges
Address
697 Collins Street, Level 10, Docklands, VIC, AUS, 3008
IDP Education is a global leader in English language testing and student placement services, constituting 64% and 27% of fiscal 2022 group revenue, respectively. Additionally, IDP operates English language schools, organizes education events and delivers consultancy services to education institutions, which constitutes the remainder of group revenue. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.

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