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, Bajaj Finserv's share price is ₹1627.10.
Bajaj Finserv's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was ₹656.53. Hence, Bajaj Finserv's PS Ratio for today is 2.48.
Good Sign:
Bajaj Finserv Ltd stock PS Ratio (=2.46) is close to 3-year low of 2.43
The historical rank and industry rank for Bajaj Finserv's PS Ratio or its related term are showing as below:
BOM:532978'
s PS Ratio Range Over the Past 10 Years
Min: 1.21 Med: 2.71 Max: 4.91
Current: 2.46
During the past 13 years, Bajaj Finserv's highest PS Ratio was 4.91. The lowest was 1.21. And the median was 2.71.
BOM:532978's PS Ratio is ranked worse than 55.45% of 101
companies
in the Diversified Financial Services industry
Industry Median: 2.09
vs BOM:532978: 2.46
Bajaj Finserv Ltd has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Bajaj Finserv was 33.90% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 20.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 18.50% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 27.00% per year.
During the past 13 years, Bajaj Finserv's highest 3-Year average Revenue per Share Growth Rate was 43.50% per year. The lowest was 13.10% per year. And the median was 27.55% per year.
Back to Basics: PS Ratio
Bajaj Finserv PS Ratio Historical Data
The historical data trend for Bajaj Finserv'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 Bajaj Finserv's PS Ratio
For the Financial Conglomerates subindustry, Bajaj Finserv'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.
Bajaj Finserv's PS Ratio Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Bajaj Finserv's PS Ratio distribution charts can be found below:
* The bar in red indicates where Bajaj Finserv's PS Ratio falls into.
Bajaj Finserv 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.
Bajaj Finserv's Share Price of today is ₹1627.10. Bajaj Finserv's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹656.53.
* 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.
Bajaj Finserv PS Ratio Related Terms
Thank you for viewing the detailed overview of Bajaj Finserv's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Bajaj Finserv Ltd is a non-banking financial services company headquartered in India that engages in lending activities. It services six lending verticals: consumer, small and midsize enterprises, commercial, rural, deposits, and partnerships and services. Bajaj's consumer and rural lending consists of funding solutions for consumer durables, such as vehicles and furniture to personal loans. The commercial lending activities consist of funding for plant and machinery assets and term loans to SMEs. Its mortgage lending activities consist of loans for residential and commercial properties and developer financing, among others. The company operates in India, with most of its revenue coming from Premium and other operating income from the insurance business.
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