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What is a price to sales ratio (P/S ratio)?
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What is a price to sales ratio?
What is a forward P/S ratio?
Why do companies have different P/S ratios?
Jun 27, 2024 · The price-to-sales (P/S) ratio shows how much investors are willing to pay per dollar of sales for a stock. The P/S ratio is calculated by dividing the stock price by the...
- Marshall Hargrave
- 2 min
The price to sales ratio, often called the P/S ratio or simply Price/Sales, is a financial metric that measures the value investors put on a company for each dollar of revenue generated by the firm by comparing the stock price with total revenue.
The Price to Sales ratio, also known as the P/S ratio, is a formula used to measure the total value that investors place on the company in comparison to the total revenue generated by the business. It is calculated by dividing the share price by the sales per share.
Jun 8, 2023 · The P/S ratio is a financial valuation metric that compares a company's stock price or market capitalization to its sales or revenue. It is used by investors, analysts, and portfolio managers to assess the relative value of a company's shares and identify potential investment opportunities.
Aug 21, 2024 · The price to sales ratio or P/S ratio indicates how much an investor must pay to purchase one equity share of a company compared to the revenue generated per share. One can use this ratio to determine if a stock is undervalued or overvalued.
May 18, 2024 · The P/S ratio is an investment valuation ratio that shows a company's market capitalization divided by the company's sales for the previous 12 months. It...
Accounting ratios cover a wide array of ratios that are used by accountants and act as different indicators that measure profitability, liquidity, and potential financial distress in a company’s financials.