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IHS Markit (IHS Markit) PS Ratio : 9.36 (As of May. 06, 2024)


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What is IHS Markit 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, IHS Markit's share price is $108.61. IHS Markit's Revenue per Share for the trailing twelve months (TTM) ended in Nov. 2021 was $11.61. Hence, IHS Markit's PS Ratio for today is 9.36.

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

INFO' s PS Ratio Range Over the Past 10 Years
Min: 2.98   Med: 4.72   Max: 11.45
Current: 9.36

During the past 13 years, IHS Markit's highest PS Ratio was 11.45. The lowest was 2.98. And the median was 4.72.

INFO's PS Ratio is not ranked
in the Business Services industry.
Industry Median: 1.1 vs INFO: 9.36

IHS Markit's Revenue per Sharefor the three months ended in Nov. 2021 was $2.92. Its Revenue per Share for the trailing twelve months (TTM) ended in Nov. 2021 was $11.61.

Good Sign:

IHS Markit Ltd has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of IHS Markit was 8.70% per year. During the past 3 years, the average Revenue per Share Growth Rate was 5.60% per year. During the past 5 years, the average Revenue per Share Growth Rate was 6.50% per year. During the past 10 years, the average Revenue per Share Growth Rate was 6.70% per year.

During the past 13 years, IHS Markit's highest 3-Year average Revenue per Share Growth Rate was 25.20% per year. The lowest was -17.10% per year. And the median was 11.20% per year.

Back to Basics: PS Ratio


IHS Markit PS Ratio Historical Data

The historical data trend for IHS Markit'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.

IHS Markit PS Ratio Chart

IHS Markit Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.11 5.42 6.73 9.31 11.01

IHS Markit Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
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 Premium Member Only Premium Member Only Premium Member Only 9.31 8.35 9.42 10.53 11.01

Competitive Comparison of IHS Markit's PS Ratio

For the Consulting Services subindustry, IHS Markit'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.


IHS Markit's PS Ratio Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, IHS Markit's PS Ratio distribution charts can be found below:

* The bar in red indicates where IHS Markit's PS Ratio falls into.



IHS Markit 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.

IHS Markit's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=108.61/11.606
=9.36

IHS Markit's Share Price of today is $108.61.
IHS Markit's Revenue per Share for the trailing twelve months (TTM) ended in Nov. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $11.61.

* 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.


IHS Markit  (NYSE:INFO) 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.


IHS Markit PS Ratio Related Terms

Thank you for viewing the detailed overview of IHS Markit's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


IHS Markit (IHS Markit) Business Description

Traded in Other Exchanges
N/A
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit (IHS Markit) Headlines

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