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Cabot (CBT) PS Ratio : 1.33 (As of Apr. 25, 2024)


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What is Cabot 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, Cabot's share price is $93.03. Cabot's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $69.75. Hence, Cabot's PS Ratio for today is 1.33.

Warning Sign:

Cabot Corp stock PS Ratio (=1.34) is close to 5-year high of 1.34

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

CBT' s PS Ratio Range Over the Past 10 Years
Min: 0.38   Med: 0.96   Max: 1.56
Current: 1.33

During the past 13 years, Cabot's highest PS Ratio was 1.56. The lowest was 0.38. And the median was 0.96.

CBT's PS Ratio is ranked better than
52.06% of 1527 companies
in the Chemicals industry
Industry Median: 1.41 vs CBT: 1.33

Cabot's Revenue per Sharefor the three months ended in Dec. 2023 was $17.17. Its Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $69.75.

Warning Sign:

Cabot Corp revenue per share is in decline over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Cabot was -8.10% per year. During the past 3 years, the average Revenue per Share Growth Rate was 14.60% per year. During the past 5 years, the average Revenue per Share Growth Rate was 7.50% per year. During the past 10 years, the average Revenue per Share Growth Rate was 3.70% per year.

During the past 13 years, Cabot's highest 3-Year average Revenue per Share Growth Rate was 103.70% per year. The lowest was -50.20% per year. And the median was 5.10% per year.

Back to Basics: PS Ratio


Cabot PS Ratio Historical Data

The historical data trend for Cabot'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.

Cabot PS Ratio Chart

Cabot Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.80 0.78 0.84 0.84 1.00

Cabot 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 0.88 1.02 0.93 1.00 1.20

Competitive Comparison of Cabot's PS Ratio

For the Specialty Chemicals subindustry, Cabot'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.


Cabot's PS Ratio Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Cabot's PS Ratio distribution charts can be found below:

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



Cabot 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.

Cabot's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=93.03/69.751
=1.33

Cabot's Share Price of today is $93.03.
Cabot'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 $69.75.

* 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.


Cabot  (NYSE:CBT) 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.


Cabot PS Ratio Related Terms

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


Cabot (CBT) Business Description

Traded in Other Exchanges
Address
Two Seaport Lane, Suite 1400, Boston, MA, USA, 02210
Cabot Corp manufactures and sells a variety of chemicals, materials, and chemical-based products. The company organizes itself into two segments based on the product type. The reinforcement materials segment, which generates more revenue than any other segment, sells rubber-grade carbon black products used in hoses and belts in automobiles. The performance chemicals segment sells ink-jet colorants and metal oxides used in the automotive and construction industries.
Executives
Erica Mclaughlin officer: Senior Vice President, CFO C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Karen A Kalita officer: SVP and General Counsel C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Hobart Kalkstein officer: Senior Vice President C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Michelle Elizabeth Williams director 6555 WEST GOOD HOPE ROAD, MILWAUKEE WI 53223
Sean D Keohane officer: Vice President C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Raffiq Nathoo director C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1400, BOSTON MA 02210
Douglas G Delgrosso director
Lisa M Dumont officer: Controller C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Jeff Ji Zhu officer: Senior Vice President C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Christine Y Yan director C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
John R Doubman officer: Senior Vice President C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Frank Anders Wilson director C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Patrick M. Prevost director, officer: President and CEO C/O SOUTHWESTERN ENERGY COMPANY, 10000 ENERGY DRIVE, SPRING TX 77389-4954
Nicholas S. Cross officer: Executive Vice President C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Brian A Berube officer: Vice President,General Counsel C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210