P/S Ratio (Price-to-Sales)

Valuation

What is P/S Ratio (Price-to-Sales)?

Stock price divided by revenue per share. Measures how much investors pay per dollar of revenue.

Why P/S Ratio (Price-to-Sales) matters

Particularly useful for evaluating companies that are not yet profitable, where P/E cannot be calculated.

Related terms in Valuation

DCF (Discounted Cash Flow)Intrinsic Value Market Capitalization P/B Ratio (Price-to-Book)P/E Ratio (Price-to-Earnings)PEG Ratio Residual Income Model Terminal Value

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.