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, Covidien's share price is €94.50.
Covidien's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2014 was €17.86. Hence, Covidien's PS Ratio for today is 5.29.
The historical rank and industry rank for Covidien's PS Ratio or its related term are showing as below:
FRA:6COP'
s PS Ratio Range Over the Past 10 Years
Min: 1.23 Med: 2.08 Max: 4.61
Current: 4.55
During the past 13 years, Covidien's highest PS Ratio was 4.61. The lowest was 1.23. And the median was 2.08.
FRA:6COP's PS Ratio is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 3.28
vs FRA:6COP: 4.55
Covidien's Revenue per Sharefor the
three
months ended in Dec. 2014 was €4.76.
Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2014 was €17.86.
Good Sign:
Covidien PLC has shown predictable revenue and earnings growth.
During the past 12 months, the average Revenue per Share Growth Rate of Covidien was 5.90% per year.
During the past 3 years, the average Revenue per Share Growth Rate was 0.10% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 1.80% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 2.70% per year.
During the past 13 years, Covidien's highest 3-Year average Revenue per Share Growth Rate was 9.20% per year. The lowest was 0.00% per year. And the median was 1.55% per year.
Back to Basics: PS Ratio
Covidien PS Ratio Historical Data
The historical data trend for Covidien'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.
For the Medical Instruments & Supplies subindustry, Covidien'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.
Covidien's PS Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Covidien's PS Ratio distribution charts can be found below:
* The bar in red indicates where Covidien's PS Ratio falls into.
Covidien 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.
Covidien's Share Price of today is €94.50. Covidien's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €17.86.
* 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.
Covidien PS Ratio Related Terms
Thank you for viewing the detailed overview of Covidien's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Covidien PLC formerly known as Covidien Ltd. was incorporated in Bermuda in 2000 as a wholly-owned subsidiary of Tyco International Ltd. In June 2009, Covidien plc announced that one of its subsidiaries has completed the acquisition of VNUS Medical Technologies, Inc. In September 2009, the Company completed the acquisition of Power Medical Interventions Inc. In November 2009, the Company completed the acquisition of Aspect Medical Systems Inc. The Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Its products are found in almost every hospital in the United States. Its mission is to create and deliver innovative healthcare solutions, developed in ethical collaboration with medical professionals. It operates through two segments: Medical Devices and Medical Supplies. The Medical Devices segment includes the development, manufacture and sale of endomechanical instruments, energy devices, soft tissue repair products, vascular products, oximetry and monitoring products, airway and ventilation products, and other medical products. The Medical Supplies segment includes the development, manufacture and sale of nursing care products, medical surgical products, SharpSafety products and original equipment manufacturer products. Competitors of Medical Devices segment include diversified healthcare companies, such as Johnson & Johnson, Boston Scientific, Baxter and C.R. Bard. Its Nursing Care products include: Curity and Kerlix and Medical Surgical products include: Medi-Trace. The Company holds more than 13,000 patents and have over 10,500 patent applications pending in the United States and in certain other countries that relate to aspects of the technology used in many of its products. The Company is subject to numerous federal, state and local environmental protection and health and safety laws and regulations both within and outside the United States.
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