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, Essential Utilities's share price is $39.225.
Essential Utilities's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $7.18. Hence, Essential Utilities's PS Ratio for today is 5.47.
Warning Sign:
Essential Utilities Inc stock PS Ratio (=5.46) is close to 1-year high of 5.47
The historical rank and industry rank for Essential Utilities's PS Ratio or its related term are showing as below:
WTRG'
s PS Ratio Range Over the Past 10 Years
Min: 3.82 Med: 6.64 Max: 12.97
Current: 5.46
During the past 13 years, Essential Utilities's highest PS Ratio was 12.97. The lowest was 3.82. And the median was 6.64.
WTRG's PS Ratio is ranked worse than 91.75% of 509
companies
in the Utilities - Regulated industry
Industry Median: 1.33
vs WTRG: 5.46
Essential Utilities Inc revenue per share is in decline over the past 12 months.
During the past 12 months, the average Revenue per Share Growth Rate of Essential Utilities was -18.30% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 10.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 15.10% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 6.90% per year.
During the past 13 years, Essential Utilities's highest 3-Year average Revenue per Share Growth Rate was 28.30% per year. The lowest was -13.40% per year. And the median was 4.40% per year.
Back to Basics: PS Ratio
Essential Utilities PS Ratio Historical Data
The historical data trend for Essential Utilities'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 Essential Utilities's PS Ratio
For the Utilities - Regulated Water subindustry, Essential Utilities'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.
Essential Utilities's PS Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Essential Utilities's PS Ratio distribution charts can be found below:
* The bar in red indicates where Essential Utilities's PS Ratio falls into.
Essential Utilities 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.
Essential Utilities's Share Price of today is $39.225. Essential Utilities'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 $7.18.
* 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:
Essential Utilities (NYSE:WTRG) 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.
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.
Essential Utilities PS Ratio Related Terms
Thank you for viewing the detailed overview of Essential Utilities's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Essential Utilities (Essential Utilities) Business Description
Essential Utilities is a Pennsylvania-based holding company for U.S. water, wastewater, and natural gas distribution utilities. The company's water business serves 3 million people in eight states. Nearly three fourths of its water earnings come from Pennsylvania, primarily suburban Philadelphia. Its Peoples subsidiary serves more than 700,000 gas distribution customers in Pennsylvania and Kentucky. Essential exited its noncore competitive water and energy services businesses.
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