Ford Motor Beta vs. Price to Sales

F -- USA Stock  

USD 9.55  0.04  0.42%

The Drivers Module shows relationships between Ford Motor's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Ford Motor Company over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

Ford Motor Price to Sales vs. Beta Fundamental Analysis

Ford Motor Company is rated below average in beta category among related companies. It is rated below average in price to sales category among related companies fabricating about  0.30  of Price to Sales per Beta. The ratio of Beta to Price to Sales for Ford Motor Company is roughly  3.29 
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of financial instrument to the financial market in which this instrument is traded. For example if Beta of equity is 2, it will be expected to significantly outperform market when market is going up and significantly underperform when market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns during over time.
Ford Motor 
Beta 
 = 
Covariance 
Variance 
=
0.79
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
Ford Motor 
P/S 
 = 
MV Per Share 
Revenue Per Share 
=
0.24 times
The most important factor to remember is that the price of equity takes a firm's debt into account, whereas the sales does not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Ford Motor Price to Sales Comparison

Ford Motor is rated below average in price to sales category among related companies.
  Beta 
      Ford Motor Comparables 
Ford Motor is rated below average in beta category among related companies.

Beta Analysis

As returns on market increase, Ford Motor returns are expected to increase less than the market. However during bear market, the loss on holding Ford Motor will be expected to be smaller as well.