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Derwent London (LSE:DLN) PS Ratio : 8.64 (As of Apr. 29, 2024)


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What is Derwent London 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, Derwent London's share price is £20.42. Derwent London's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was £2.36. Hence, Derwent London's PS Ratio for today is 8.64.

Good Sign:

Derwent London PLC stock PS Ratio (=8.64) is close to 10-year low of 8.13

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

LSE:DLN' s PS Ratio Range Over the Past 10 Years
Min: 8.13   Med: 16   Max: 24.25
Current: 8.64

During the past 13 years, Derwent London's highest PS Ratio was 24.25. The lowest was 8.13. And the median was 16.00.

LSE:DLN's PS Ratio is ranked worse than
68.24% of 828 companies
in the REITs industry
Industry Median: 6.535 vs LSE:DLN: 8.64

Derwent London's Revenue per Sharefor the six months ended in Dec. 2023 was £1.18. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was £2.36.

During the past 12 months, the average Revenue per Share Growth Rate of Derwent London was 6.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was -0.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 2.40% per year. During the past 10 years, the average Revenue per Share Growth Rate was 4.80% per year.

During the past 13 years, Derwent London's highest 3-Year average Revenue per Share Growth Rate was 528.30% per year. The lowest was -6.00% per year. And the median was 6.05% per year.

Back to Basics: PS Ratio


Derwent London PS Ratio Historical Data

The historical data trend for Derwent London'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.

Derwent London PS Ratio Chart

Derwent London Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.49 12.94 15.85 10.68 9.98

Derwent London Semi-Annual Data
Jun14 Dec14 Jun15 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 Premium Member Only Premium Member Only Premium Member Only 15.85 - 10.68 - 9.98

Competitive Comparison of Derwent London's PS Ratio

For the REIT - Office subindustry, Derwent London'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.


Derwent London's PS Ratio Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Derwent London's PS Ratio distribution charts can be found below:

* The bar in red indicates where Derwent London's PS Ratio falls into.



Derwent London 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.

Derwent London's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=20.42/2.364
=8.64

Derwent London's Share Price of today is £20.42.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Derwent London's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was £2.36.

* 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.


Derwent London  (LSE:DLN) 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.


Derwent London PS Ratio Related Terms

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


Derwent London (LSE:DLN) Business Description

Traded in Other Exchanges
Address
25 Savile Row, London, GBR, W1S 2ER
Derwent London PLC is a London-focused real estate investment trust. Derwent owns, manages, and refurbishes office real estate in Central London. Within this region, the majority of the company's assets are located in the districts of London's West End, such as Fitzrovia. Properties in London's Tech Belt and the City Borders also represent significant parts of the company's real estate portfolio. Derwent derives nearly all of its revenue from tenants in the form of rental income structured in mid-to-long-term leases. Office buildings in the central West End are responsible for the majority of revenue generated. Media and advertising companies, professional and business services firms, and retail head offices are all fairly evenly represented among the company's tenants.

Derwent London (LSE:DLN) Headlines

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