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F5 (FFIV) PS Ratio : 5.04 (As of Oct. 31, 2024)


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What is F5 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, F5's share price is $238.95. F5's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $47.45. Hence, F5's PS Ratio for today is 5.04.

Warning Sign:

F5 Inc stock PS Ratio (=5.04) is close to 2-year high of 5.04

The historical rank and industry rank for F5's PS Ratio or its related term are showing as below:

FFIV' s PS Ratio Range Over the Past 10 Years
Min: 2.67   Med: 4.13   Max: 5.86
Current: 5.04

During the past 13 years, F5's highest PS Ratio was 5.86. The lowest was 2.67. And the median was 4.13.

FFIV's PS Ratio is ranked worse than
72.47% of 2732 companies
in the Software industry
Industry Median: 2.25 vs FFIV: 5.04

F5's Revenue per Sharefor the three months ended in Sep. 2024 was $12.64. Its Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 was $47.45.

Warning Sign:

F5 Inc revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of F5 was 1.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was 4.20% per year. During the past 5 years, the average Revenue per Share Growth Rate was 5.50% per year. During the past 10 years, the average Revenue per Share Growth Rate was 7.30% per year.

During the past 13 years, F5's highest 3-Year average Revenue per Share Growth Rate was 80.70% per year. The lowest was -23.20% per year. And the median was 16.25% per year.

Back to Basics: PS Ratio


F5 PS Ratio Historical Data

The historical data trend for F5'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.

F5 PS Ratio Chart

F5 Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.21 4.74 3.28 3.45 4.64

F5 Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 3.45 3.83 4.07 3.69 4.64

Competitive Comparison of F5's PS Ratio

For the Software - Infrastructure subindustry, F5'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.


F5's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, F5's PS Ratio distribution charts can be found below:

* The bar in red indicates where F5's PS Ratio falls into.



F5 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.

F5's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=238.95/47.448
=5.04

F5's Share Price of today is $238.95.
F5's Revenue per Share for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $47.45.

* 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.


F5  (NAS:FFIV) 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.


F5 PS Ratio Related Terms

Thank you for viewing the detailed overview of F5's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


F5 Business Description

Traded in Other Exchanges
Address
801 5th Avenue, Seattle, WA, USA, 98104
F5 is a market leader in the application delivery controller market. The company sells products for security, application performance, and automation. Its three customer verticals are enterprises, service providers, and government entities. Revenue is evenly split between its services business and products business with revenue trending toward products due to software adoption. The Seattle-based firm was incorporated in 1996, has about 6,500 employees, and generates about 55% its revenue within the Americas, 25% in EMEA, and 20% in APAC/Japan.
Executives
Francis J. Pelzer officer: EVP, Chief Financial Officer CONCUR TECHNOLOGIES, INC., 18400 NE UNION HILL RD., REDMOND WA 98052
Alan Higginson director
Francois Locoh-donou director, officer: President, CEO & Director C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. W., SEATTLE WA 98119
Chad Michael Whalen officer: EVP, Worldwide Sales C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Thomas Dean Fountain officer: EVP and Chief Strategy Officer C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Scot Frazier Rogers officer: Interim General Counsel C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Michael L Dreyer director C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Tami A. Erwin director 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Ana Maria White officer: EVP and Chief HR Officer C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Mika Yamamoto officer: EVP, Chief Marketing Officer 21300 VICTORY BLVD.,, 12TH FLOOR, WOODLAND HILLS CA 91367
Geng Lin officer: EVP, Chief Technology Officer C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Marianne Budnik director C/O ACME PACKET, INC., 100 CROSBY DRIVE, BEDFORD MA 01730
Phillips James Malcolm Jr director C/O F5, INC., 801 FIFTH AVE., SEATTLE WA 98104
Michael F Montoya director C/O F5 NETWORKS, INC., 801 FIFTH AVE., SEATTLE WA 98104
Deborah L Bevier director PO BOX 91258, BELLEVUE WA 98009