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SLM (SLM) PS Ratio : 2.86 (As of Apr. 25, 2024)


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What is SLM 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, SLM's share price is $22.10. SLM's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $7.73. Hence, SLM's PS Ratio for today is 2.86.

Warning Sign:

SLM Corp stock PS Ratio (=2.84) is close to 1-year high of 2.84

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

SLM' s PS Ratio Range Over the Past 10 Years
Min: 1.32   Med: 3.37   Max: 13.61
Current: 2.85

During the past 13 years, SLM's highest PS Ratio was 13.61. The lowest was 1.32. And the median was 3.37.

SLM's PS Ratio is ranked better than
53.38% of 517 companies
in the Credit Services industry
Industry Median: 3.18 vs SLM: 2.85

SLM's Revenue per Sharefor the three months ended in Dec. 2023 was $1.96. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $7.73.

Good Sign:

SLM Corp has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of SLM was 10.90% per year. During the past 3 years, the average Revenue per Share Growth Rate was 18.50% per year. During the past 5 years, the average Revenue per Share Growth Rate was 20.90% per year. During the past 10 years, the average Revenue per Share Growth Rate was 18.30% per year.

During the past 13 years, SLM's highest 3-Year average Revenue per Share Growth Rate was 41.00% per year. The lowest was -43.10% per year. And the median was 16.75% per year.

Back to Basics: PS Ratio


SLM PS Ratio Historical Data

The historical data trend for SLM'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.

SLM PS Ratio Chart

SLM 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 2.29 2.67 3.10 2.38 2.47

SLM Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 2.38 1.70 2.27 1.91 2.47

Competitive Comparison of SLM's PS Ratio

For the Credit Services subindustry, SLM'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.


SLM's PS Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, SLM's PS Ratio distribution charts can be found below:

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



SLM 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.

SLM's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=22.10/7.729
=2.86

SLM's Share Price of today is $22.10.
SLM's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $7.73.

* 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.


SLM  (NAS:SLM) 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.


SLM PS Ratio Related Terms

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


SLM (SLM) Business Description

Traded in Other Exchanges
Address
300 Continental Drive, Newark, DE, USA, 19713
SLM Corp is the largest student lender in the country. It makes and holds student loans through the guaranteed Federal Family Education Loan Program as well as through private channels. It also engages in debt-management operations, including accounts receivable and collections services, and runs college savings programs.
Executives
Peter M Graham officer: EVP 150 CORPORATE BLVD, NORFOLK VA 23502
Nicolas Jafarieh officer: SVP, General Counsel SLM CORPORATION, 300 CONTINENTAL DRIVE, NEWARK DE 19713
Munish Pahwa officer: Chief Risk Officer 300 CONTINENTAL DRIVE, NEWARK DE 19713
Jonathan Boyles officer: SVP & Controller 300 CONTINENTAL DRIVE., NEWARK DE 19713
Steven Mcgarry officer: Chief Financial Officer 300 CONTINENTAL DRIVE, NEWARK DE 19713
Richard Scott Blackley director 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Samuel Theron Ramsey director 6612 SAIN MILLING ROAD, VALE NC 28168
Robert S. Strong director 300 CONTINENTAL DR., NEWARK DE 19713
Ted Manvitz director 300 CONTINENTAL DRIVE, NEWARK DE 19713
Franke Mary Carter Warren director 300 CONTINENTAL DRIVE, NEWARK DE 19713
Kerri A. Palmer officer: EVP & Chief Risk and Comp Off 300 CONTINENTAL DRIVE, NEWARK DE 19713
Paul F Thome officer: EVP & Chief Admin Officer 300 CONTINENTAL DRIVE, NEWARK DE 19713
Daniel P Kennedy officer: SVP, Chief Operational Officer 300 CONTINENTAL DRIVE, NEWARK DE 19713
Jonathan W. Witter director, officer: CEO 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Earl A Goode director 300 CONTINENTAL DRIVE, NEWARKD DE 19713