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Unformatted text preview: M is expected to have an earnings growth rate
that significantly exceeds its peers.
Sales Growth discount VLCM 1.67
• Discount. In the absence of P/E and P/B multiples,
the price-to-sales ratio can display the value
investors are placing on each dollar of sales.
• VLCM is trading at a discount to its industry on this
measurement. 3 VLCM 16.68
• Premium. The P/CF ratio, a stock’s price divided by
the company's cash flow from operations, is useful
for comparing companies with different capital
requirements or financing structures.
• VLCM is trading at a significant premium to its
peers. discount VLCM 2.15
• Discount. A lower price-to-book ratio makes a
stock more attractive to investors seeking stocks
with lower market values per dollar of equity on the
• VLCM is trading at a significant discount to its
peers. 2 premium discount VLCM 15.98
• Average. An average price-to-projected earnings
ratio can signify an industry neutral stock price and
average future growth expectations.
• VLCM is trading at a valuation on par with its peers.
Price/Book 1 Price/CashFlow discount 2009 MOST RECENT RATINGS CHANGES
$25.78 No Change Price as of 6/24/2010
BUY. VOLCOM INC's P/E ratio indicates a discount compared to an average of 20.36 for the Textiles, Apparel
& Luxury Goods industry and a value on par with the S&P 500 average of 21.06. To use another comparison,
its price-to-book ratio of 2.15 indicates valuation on par with the S&P 500 average of 2.02 and a discount
versus the industry average of 3.58. The current price-to-sales ratio is above the S&P 500 average, but below
the industry average. Upon assessment of these and other key valuation criteria, VOLCOM INC proves to
trade at a discount to investment alternatives within the industry. $30 $10 2008 Beta
1.83 1 2 3 lower 4 5
higher VLCM -10.04
• Lower. A sales growth rate that trails the industry
implies that a company is losing market share.
• VLCM significantly trails its peers on the basis of
sales growth DISCLAIMER:
The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but
TheStreet.com Ratings, Inc. can not guarantee its accuracy and completeness, and that of the opinions based thereon. Data is
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