| Price-to-Sales Ratio (Price/Sales) |
 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 by its revenue per share. Also known as "PSR".
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The price-to-sales ratio can vary substantially across industries; therefore, it's useful mainly when comparing similar companies. Because it doesn't take into account any expenses or debt, the ratio is somewhat limited in the story it tells.
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Ratio Analysis Tutorial - If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios.
P/S Ratio: A Useful Way to Size Up Stocks (Sometimes) - Take a look at how this ratio is effective but also influenced by certain critical factors.
Introduction to Fundamental Analysis - Here's an easy-to-understand tutorial on the techniques of analyzing a company's financial statements, including the annual and quarterly reports, the auditor's report, and much more. |
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