GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lamb Weston Holdings Inc (NYSE:LW) » Definitions » PS Ratio

Lamb Weston Holdings (Lamb Weston Holdings) PS Ratio

: 1.81 (As of Today)
View and export this data going back to 2016. Start your Free Trial

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, Lamb Weston Holdings's share price is $81.265. Lamb Weston Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 was $44.85. Hence, Lamb Weston Holdings's PS Ratio for today is 1.81.

Good Sign:

Lamb Weston Holdings Inc stock PS Ratio (=1.79) is close to 5-year low of 1.77

The historical rank and industry rank for Lamb Weston Holdings's PS Ratio or its related term are showing as below:

LW' s PS Ratio Range Over the Past 10 Years
Min: 1.45   Med: 2.64   Max: 3.6
Current: 1.83

During the past 10 years, Lamb Weston Holdings's highest PS Ratio was 3.60. The lowest was 1.45. And the median was 2.64.

LW's PS Ratio is ranked worse than
70.75% of 1853 companies
in the Consumer Packaged Goods industry
Industry Median: 0.94 vs LW: 1.83

Lamb Weston Holdings's Revenue per Sharefor the three months ended in Feb. 2024 was $10.04. Its Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 was $44.85.

During the past 12 months, the average Revenue per Share Growth Rate of Lamb Weston Holdings was 35.00% per year. During the past 3 years, the average Revenue per Share Growth Rate was 12.60% per year. During the past 5 years, the average Revenue per Share Growth Rate was 7.60% per year.

During the past 10 years, Lamb Weston Holdings's highest 3-Year average Revenue per Share Growth Rate was 12.60% per year. The lowest was 2.30% per year. And the median was 5.20% per year.

Back to Basics: PS Ratio


Lamb Weston Holdings PS Ratio Historical Data

The historical data trend for Lamb Weston Holdings'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.

Lamb Weston Holdings Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.32 2.33 3.31 2.41 3.02

Lamb Weston Holdings Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
PS Ratio 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 Premium Member Only Premium Member Only Premium Member Only 3.03 3.02 2.41 2.30 2.28

Competitive Comparison

For the Packaged Foods subindustry, Lamb Weston Holdings'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.


Lamb Weston Holdings PS Ratio Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Lamb Weston Holdings's PS Ratio distribution charts can be found below:

* The bar in red indicates where Lamb Weston Holdings's PS Ratio falls into.



Lamb Weston Holdings 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.

Lamb Weston Holdings's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=81.265/44.853
=1.81

Lamb Weston Holdings's Share Price of today is $81.265.
Lamb Weston Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $44.85.

* 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.


Lamb Weston Holdings  (NYSE:LW) 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.


Lamb Weston Holdings PS Ratio Related Terms

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


Lamb Weston Holdings (Lamb Weston Holdings) Business Description

Traded in Other Exchanges
Address
599 S. Rivershore Lane, Eagle, ID, USA, 83616
Lamb Weston is North America's largest and the world's second-largest producer of branded and private-label frozen potato products, both by volume and value. The company's portfolio is anchored by French fries, but it also sells sweet potato fries, tater tots, diced potatoes, mashed potatoes, hash browns, and chips. Nearly 70% of revenue comes from its home market of North America, with none of the other 100 countries the company sells into representing a significant share. McDonald's is Lamb Weston's single largest customer at 13% of fiscal 2023 sales, with no other company representing more than 10%. Lamb Weston became an independent company in 2016 when it was spun off from Conagra.
Executives
William G Jurgensen director
Eryk J Spytek officer: See Remarks 599 S. RIVERSHORE LANE, EAGLE ID 83616
Rita Fisher director 1900 W. FIELD COURT, LAKE FOREST IL 60045
Sukshma Rajagopalan officer: Chief Info and Digital Officer C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Marc Schroeder officer: President, International C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Sharon L. Miller officer: Senior Vice President 599 S. RIVERSHORE LANE, EAGLE ID 83616
Gregory W Jones officer: Vice President and Controller C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Bernadette M Madarieta officer: Vice President and Controller 599 S. RIVERSHORE LANE, EAGLE ID 83616
Michael Jared Smith officer: SVP, Growth & Strategy 599 S. RIVERSHORE LANE, EAGLE ID 83616
Gerardo Scheufler officer: SVP, Chief Supply Chain Off C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Steven J Younes officer: CHIEF HUMAN RESOURCES OFFICER C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
John C Hatto officer: Senior Vice President C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616
Robert A Niblock director 1605 CURTIS BRIDGE ROAD, WILKESBORO NC 28697
Peter J Bensen director MCDONALD'S CORPORATION, 2915 JORIE BOULEVARD, OAK BROOK IL 60523
Thomas P. Werner director, officer: President C/O LAMB WESTON HOLDINGS, INC., 599 S. RIVERSHORE LANE, EAGLE ID 83616

Lamb Weston Holdings (Lamb Weston Holdings) Headlines