Market Cap / Revenue Ratio

20 мая 2024 г.

A variation of the P/S ratio, this script takes the future estimated revenue of the current stock versus it's Market Cap. It then compares the aforementioned Market Cap:Revenue ratio against a market bellwether's corresponding ratio (MSFT by default) to determine the following:

- Light green when the ratio is extremely low (Stock is very undervalued)
- Green when the ratio is low (Stock's multiple is lower by 20-50%)
- Blue when the ratio is close to the benchmark (Stock is fairly valued to benchmark multiple)
- Red when the ratio is high (Stock's mulitple is higher by 50% or more)
- Dark red when the ratio is extremely high (Stock is very overvalued)

CONFIGURABLE
- Full Table: Show the entire calculation table
- Minimalist: Go minimal and show only the ratio and color code
- Show Benchmark Multiple: Show the multiple ratio calculated between the current stock and the benchmark stock (MSFT by default)

NOTES
- When calculating the Market Cap, TradingView sometimes under-reports the number of shares and thus skews the Market Cap too low. This seems to happen for stocks with multiple share classes like GOOGL so be mindful that the data can be wrong for these kinds of stocks. You can check on this by going into the Indicator's Settings and select Show Full Table which will show the number of shares outstanding reported by TradingView.
- For certain stocks such as foreign ADRs, there won't be a future revenue estimate so the script will automatically use the Total Revenue for the most recent Quarter in these cases

21 мая 2024 г.

Информация о релизе

Code cleanup / added more comments. Chart update.

24 июн.

Информация о релизе

June 24, 2026: Stability Fixes & Polish
- Fixed the issue where this Indicator would intermittently disappear after operating on stocks with no Revenue (such as ETFs)
- Added better Memory Management
- Polish to Indicator, looks even better in Dark Mode
- Added a new orange color (see Chart Example) for stocks that are not excessively higher than the Benchmark Stock

Chart Example: NVDA - This stock is still reasonably valued as it is does not carry an excessively higher multiple than the Benchmark Stock MSFT (This Benchmark Stock is user-configurable).

The indicator goes GREEN for stocks below the multiple of the Benchmark and goes RED when they are excessively higher than the Benchmark. After using this indicator you will get a feel for the valuation model which allows us to have conviction as investors if a stock is up a lot but is still reasonably valued.

24 июн.

Информация о релизе

June 24, 2026: Small additional update that uses the Diluted Shares Outstanding if the value is larger than the reported Total Shares Outstanding. This allows for a more precise Market Cap calculation with the latest Front Quarter share count.