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, Muthoot Finance's share price is ₹1718.40.
Muthoot Finance's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was ₹227.98. Hence, Muthoot Finance's PS Ratio for today is 7.54.
Warning Sign:
Muthoot Finance Ltd stock PS Ratio (=7.4) is close to 2-year high of 7.4
The historical rank and industry rank for Muthoot Finance's PS Ratio or its related term are showing as below:
BOM:533398'
s PS Ratio Range Over the Past 10 Years
Min: 1.07 Med: 5.99 Max: 17.62
Current: 7.4
During the past 13 years, Muthoot Finance's highest PS Ratio was 17.62. The lowest was 1.07. And the median was 5.99.
BOM:533398's PS Ratio is ranked worse than 72.09% of 516
companies
in the Credit Services industry
Industry Median: 3.07
vs BOM:533398: 7.40
Muthoot Finance Ltd has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Muthoot Finance was 21.30% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 5.80% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 12.20% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 14.90% per year.
During the past 13 years, Muthoot Finance's highest 3-Year average Revenue per Share Growth Rate was 86.00% per year. The lowest was -2.30% per year. And the median was 21.90% per year.
Back to Basics: PS Ratio
Muthoot Finance PS Ratio Historical Data
The historical data trend for Muthoot Finance'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 Muthoot Finance's PS Ratio
For the Credit Services subindustry, Muthoot Finance'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.
Muthoot Finance's PS Ratio Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Finance's PS Ratio distribution charts can be found below:
* The bar in red indicates where Muthoot Finance's PS Ratio falls into.
Muthoot Finance 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.
Muthoot Finance's Share Price of today is ₹1718.40. Muthoot Finance's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was ₹227.98.
* 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.
Muthoot Finance PS Ratio Related Terms
Thank you for viewing the detailed overview of Muthoot Finance's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Muthoot Finance Ltd is a non-deposit-taking, non-banking financial company with thousands of branches in India. The company's main business is providing personal and business loans to individuals who do not have access to formal credit. The loans are typically secured by gold jewelry. Muthoot also offers some microfinance loans and housing loans to customer segments and areas that are underserved by banks. Interest income accounts for nearly all the company's revenue. Muthoot has operations in Sri Lanka and India, with India providing almost all the company's revenue.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:533398 has been successfully added to your 