Exchange Currency

price to sales ratio

A stock's capitalization divided by its sales over the trailing 12 months. The value is the same whether the calculation is done for the whole company or on a per-share basis. A low price to sales ratio (for example, below 1.0) is usually thought to be a better investment since the investor is paying less for each unit of sales. However, sales don't reveal the whole picture, since the company might be unprofitable. Because of the limitations, price to sales ratio are usually used only for unprofitable companies, since such companies don't have a price/earnings ratio (P/E ratio).

Related information about price to sales ratio:
  1. Price-To-Sales Ratio (Price/Sales) Definition | Investopedia
    A ratio for valuing a stock relative to its own past performance, other companies or the market itself. Price to sales is calculated by dividing a stock's current price ...
     
  2. How To Use Price-To-Sales Ratios To Value Stocks
    Nov 21, 2010 ... The price-to-sales ratio (Price/Sales or P/S) provides a simple approach: take the company's market capitalization (the number of shares ...
     
  3. Price–sales ratio - Wikipedia, the free encyclopedia
    Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; ...
     
  4. Price to Sales Ratio
    Sep 14, 2010 ... Kevin Matras talks about the Price to Sales ratio and why it's one of his favorite valuation metrics. Stocks highlighted include JAKK, POL, ETN, ...
     
  5. Price to Sales Ratio - How to Calculate the P/S
    The Price to Sales ratio is a tool for evaluating companies with no earnings that looks at how the market values the company's sales.
     
  6. Hussman Funds: Price-to-Sales Ratio May Prove Valuable in the ...
    Price-to-Sales Ratio May Prove Valuable in the Next Profits Recession. Financial sector earnings, profit margins, and valuation traps. William Hester, CFA ...
     
  7. Price to Sales Ratio - YouTube
    Mar 22, 2011 ... Kevin Matras writes about the Price to sales ratio and why it's one of his favorite valuation metrics. Highlighted stocks include CACI, LECO, MLI, ...
     
  8. Price-to-Sales Ratio - Financial Dictionary - The Free Dictionary
    Price-to-Sales Ratio. Also found in: Wikipedia, 0.01 sec. Price-to-Sales Ratio. A ratio of a company's share price to its revenue from sales over a given period of ...