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, HCL Technologies's share price is ₹1366.60.
HCL Technologies's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was ₹405.01. Hence, HCL Technologies's PS Ratio for today is 3.37.
The historical rank and industry rank for HCL Technologies's PS Ratio or its related term are showing as below:
NSE:HCLTECH'
s PS Ratio Range Over the Past 10 Years
Min: 1.56 Med: 3.08 Max: 11.06
Current: 3.37
During the past 13 years, HCL Technologies's highest PS Ratio was 11.06. The lowest was 1.56. And the median was 3.08.
NSE:HCLTECH's PS Ratio is ranked worse than 62.62% of 2742
companies
in the Software industry
Industry Median: 2.27
vs NSE:HCLTECH: 3.37
HCL Technologies Ltd has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of HCL Technologies was 8.20% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 13.40% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 13.00% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 16.00% per year.
During the past 13 years, HCL Technologies's highest 3-Year average Revenue per Share Growth Rate was 31.30% per year. The lowest was 12.90% per year. And the median was 22.50% per year.
Back to Basics: PS Ratio
HCL Technologies PS Ratio Historical Data
The historical data trend for HCL Technologies'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 HCL Technologies's PS Ratio
For the Information Technology Services subindustry, HCL Technologies'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.
HCL Technologies's PS Ratio Distribution in the Software Industry
For the Software industry and Technology sector, HCL Technologies's PS Ratio distribution charts can be found below:
* The bar in red indicates where HCL Technologies's PS Ratio falls into.
HCL Technologies 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.
HCL Technologies's Share Price of today is ₹1366.60. HCL Technologies'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 ₹405.01.
* 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:
HCL Technologies (NSE:HCLTECH) 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.
HCL Technologies PS Ratio Related Terms
Thank you for viewing the detailed overview of HCL Technologies's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
HCL Technologies (NSE:HCLTECH) Business Description
HCL Technologies Ltd provides enterprises with IT solutions in India. It focuses on offering Digital, Internet of Things Services, Cloud, Automation, Cybersecurity, Infrastructure Management, and Engineering Services to solve business problems for clients. While the company is based in India, it has international clients in a large number of countries. It offers solutions to a variety of industries including Financial Services, Public Services, Consumer Services, Healthcare, and Manufacturing. It operates in three segments IT and Business Services, Engineering and R&D Services, and Products and Platforms. The firm emphasizes consultation services for firms, with the goal to offer them digital and design solutions. Most of the firm's revenue comes from IT and Business Services segment.
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