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, Ikanos Communications's share price is €1.56.
Ikanos Communications's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2015 was €2.72. Hence, Ikanos Communications's PS Ratio for today is 0.57.
Warning Sign:
Ikanos Communications Inc stock P/S Ratio (=0.84) is close to 1-year high of 0.84
The historical rank and industry rank for Ikanos Communications's PS Ratio or its related term are showing as below:
FRA:I9J1'
s PS Ratio Range Over the Past 10 Years
Min: 0.24 Med: 0.69 Max: 3.49
Current: 0.84
During the past 13 years, Ikanos Communications's highest PS Ratio was 3.49. The lowest was 0.24. And the median was 0.69.
FRA:I9J1's PS Ratio is not ranked
in the Hardware industry.
Industry Median: 1.53
vs FRA:I9J1: 0.84
Ikanos Communications Inc revenue has been in decline for the last 5 years.
During the past 12 months, the average Revenue per Share Growth Rate of Ikanos Communications was -53.80% per year.
During the past 3 years, the average Revenue per Share Growth Rate was -39.40% per year.
During the past 5 years, the average Revenue per Share Growth Rate was -32.60% per year.
During the past 10 years, the average Revenue per Share Growth Rate was -25.70% per year.
During the past 13 years, Ikanos Communications's highest 3-Year average Revenue per Share Growth Rate was 13.10% per year. The lowest was 0.00% per year. And the median was -18.80% per year.
* 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 Ikanos Communications's PS Ratio
For the Communication Equipment subindustry, Ikanos Communications'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.
Ikanos Communications's PS Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Ikanos Communications's PS Ratio distribution charts can be found below:
* The bar in red indicates where Ikanos Communications's PS Ratio falls into.
Ikanos Communications 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.
Ikanos Communications's Share Price of today is €1.56. Ikanos Communications's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €2.72.
* 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:
Ikanos Communications (FRA:I9J1) 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.
Ikanos Communications PS Ratio Related Terms
Thank you for viewing the detailed overview of Ikanos Communications's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ikanos Communications (FRA:I9J1) Business Description
Ikanos Communications Inc was incorporated in the State of California in April 1999 and reincorporated in the State of Delaware in September 2005. The Company is a provider of advanced broadband semiconductor products and software for delivering high speed broadband solutions to the digital home. The Company's broadband multi-mode and digital subscriber line processors and other semiconductor offerings power carrier infrastructure and customer premise equipment for network equipment manufacturers who, in turn, serve telecommunications service providers. The Company has developed programmable, scalable chip architectures, which form the foundation for deploying and delivering multi-play services. This communications processor architecture with wire-speed packet processing capabilities enables high-performance end user devices capable of distributing advanced services in the home. These products support telecommunications services providers' multi-play deployment plans to the digital home while keeping their capital and operating expenditures low and have been deployed by service providers in Asia, Europe, and North and South America. The Company outsources all of its semiconductor fabrication, assembly, and test functions, which allows focusing on the design, development, sales, and marketing of its products and reduces the level of its capital investment. It offers multiple product lines that are designed to address different segments of the communications processor and the high-speed broadband DSL markets. The Company currently competes or expects to compete with, among others, Alcatel-Lucent, Broadcom Corporation, Cavium, Inc., Cortina Systems, Inc., Lantiq Deutschland GmbH, Marvell Technology Group Ltd., M/A-COM Technology Solutions Holdings, Inc., PMC-Sierra, Inc., Metanoia Communication, QUALCOMM Incorporated, Realtek Semiconductor Corp., and MediaTek Inc. As of December 29, 2013, the Company had over 285 patents issued in the United States and more than 35 companion patents issued in foreign jurisdictions.
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