PSMT PE Ratio & Valuation,Is PSMT Overvalued

PSMT Relative Valuation

PSMT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PSMT is overvalued; if below, it's undervalued.

Historical Valuation

PriceSmart Inc (PSMT) is now in the Fair zone, suggesting that its current forward PE ratio of 22.51 is considered Fairly compared with the five-year average of 19.29. The fair price of PriceSmart Inc (PSMT) is between 79.92 to 130.03 according to relative valuation methord.

Relative Value

Fair Zone

79.92-130.03

Current Price：127.14

Fair

22.51

11.00

EV/EBITDA

PriceSmart Inc. (PSMT) has a current EV/EBITDA of 11.00. The 5-year average EV/EBITDA is 9.02. The thresholds are as follows: Strongly Undervalued below 5.80, Undervalued between 5.80 and 7.41, Fairly Valued between 10.62 and 7.41, Overvalued between 10.62 and 12.23, and Strongly Overvalued above 12.23. The current Forward EV/EBITDA of 11.00 falls within the Overvalued range.

15.39

EV/EBIT

PriceSmart Inc. (PSMT) has a current EV/EBIT of 15.39. The 5-year average EV/EBIT is 8.73. The thresholds are as follows: Strongly Undervalued below -2.62, Undervalued between -2.62 and 3.06, Fairly Valued between 14.41 and 3.06, Overvalued between 14.41 and 20.08, and Strongly Overvalued above 20.08. The current Forward EV/EBIT of 15.39 falls within the Overvalued range.

0.67

PriceSmart Inc. (PSMT) has a current PS of 0.67. The 5-year average PS is 0.55. The thresholds are as follows: Strongly Undervalued below 0.35, Undervalued between 0.35 and 0.45, Fairly Valued between 0.64 and 0.45, Overvalued between 0.64 and 0.74, and Strongly Overvalued above 0.74. The current Forward PS of 0.67 falls within the Overvalued range.

0.00

P/OCF

PriceSmart Inc. (PSMT) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

PriceSmart Inc. (PSMT) has a current P/FCF of 0.00. The 5-year average P/FCF is 4.34. The thresholds are as follows: Strongly Undervalued below -13.06, Undervalued between -13.06 and -4.36, Fairly Valued between 13.05 and -4.36, Overvalued between 13.05 and 21.75, and Strongly Overvalued above 21.75. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

PriceSmart Inc (PSMT) has a current Price-to-Book (P/B) ratio of 2.96. Compared to its 3-year average P/B ratio of 2.35 , the current P/B ratio is approximately 26.16% higher. Relative to its 5-year average P/B ratio of 2.44, the current P/B ratio is about 21.59% higher. PriceSmart Inc (PSMT) has a Forward Free Cash Flow (FCF) yield of approximately 2.71%. Compared to its 3-year average FCF yield of 3.37%, the current FCF yield is approximately -19.36% lower. Relative to its 5-year average FCF yield of 2.49% , the current FCF yield is about 9.00% lower.

2.96

P/B

Median3y

2.35

Median5y

2.44

2.71

FCF Yield

Median3y

3.37

Median5y

2.49

Competitors Valuation Multiple

The average P/S ratio for PSMT's competitors is 0.66, providing a benchmark for relative valuation. PriceSmart Inc Corp (PSMT) exhibits a P/S ratio of 0.67, which is 0.7% above the industry average. Given its robust revenue growth of 8.56%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of PSMT increased by 39.76% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.50 to 25.59.

The secondary factor is the Revenue Growth, contributed 8.56%to the performance.

Overall, the performance of PSMT in the past 1 year is driven by P/E Change. Which is more unsustainable.

8.56%

1.23B → 1.33B

Revenue Growth

0.00%

2.37 → 2.37

Margin Expansion

31.20%

19.50 → 25.59

P/E Change

39.76%

90.97 → 127.14

Mkt Cap Growth

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Frequently Asked Questions

Is PriceSmart Inc (PSMT) currently overvalued or undervalued?

What is PriceSmart Inc (PSMT) fair value?

PSMT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of PriceSmart Inc (PSMT) is between 79.92 to 130.03 according to relative valuation methord.

How does PSMT's valuation metrics compare to the industry average?

The average P/S ratio for PSMT's competitors is 0.66, providing a benchmark for relative valuation. PriceSmart Inc Corp (PSMT) exhibits a P/S ratio of 0.67, which is 0.70% above the industry average. Given its robust revenue growth of 8.56%, this premium appears unsustainable.

What is the current P/B ratio for PriceSmart Inc (PSMT) as of Jan 07 2026?

As of Jan 07 2026, PriceSmart Inc (PSMT) has a P/B ratio of 2.96. This indicates that the market values PSMT at 2.96 times its book value.

What is the current FCF Yield for PriceSmart Inc (PSMT) as of Jan 07 2026?

As of Jan 07 2026, PriceSmart Inc (PSMT) has a FCF Yield of 2.71%. This means that for every dollar of PriceSmart Inc’s market capitalization, the company generates 2.71 cents in free cash flow.

What is the current Forward P/E ratio for PriceSmart Inc (PSMT) as of Jan 07 2026?

As of Jan 07 2026, PriceSmart Inc (PSMT) has a Forward P/E ratio of 22.51. This means the market is willing to pay $22.51 for every dollar of PriceSmart Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for PriceSmart Inc (PSMT) as of Jan 07 2026?

As of Jan 07 2026, PriceSmart Inc (PSMT) has a Forward P/S ratio of 0.67. This means the market is valuing PSMT at $0.67 for every dollar of expected revenue over the next 12 months.

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