For an investor looking for a way to determine stock value, a consideration is often the PSR or Price-To-Sales Ratio. This number is calculated by looking at a company’s stock price in relation to its revenues. It is particularly useful when comparing businesses within the same sector.
If the PSR is low, that number tends to show undervaluation, while if it is higher than the average that is a sign of overvaluation. Three stocks to buy currently for cheap are Estee Lauder Companies Inc (NYSE:EL), Ocwen Financial Corp (NYSE:OCN), and Coeur Mining Inc (NYSE:CDE).
The first stock is Estee Lauder Companies Inc (NYSE:EL). Its price as of last close is up 0.51% (for this year), with its trade price at $90.50 per share at close. It has a P/S ratio of 0.29, which is way below the 7.65 industry average. Earnings maintained at -57.00% typically a year, as measured over the past five years. Sales on average grew by 8.30% for the company.
As for Ocwen Financial Corp (NYSE:OCN), its last close was at a price of $7.17. In terms of its price-to-sales ratio, it was 0.33, which is much lower than the average of the industry at 1.28. Sales for the company have grown per year by 8.30%, when measured over the last five years. Regarding net income, the company has seen a decline by about -57.00%.
Coeur Mining Inc (NYSE:CDE) currently holds a price-to-sales ratio of 0.92, which is under industry average (2.17). Sales have been up by about -2.80% a year and earnings per share rate was -21.30% growth. Market value is at $1.03 billion; the latest share price was $2.72 for a share. The year high is at 7.45, which was on February 13 of 2015. The long term trend is down, since July 17 of this year.