Price-to-Sales

Price-to-sales ratio, P/S ratio, or PSR, is a valuation metric for stocks.

Price-to-Sales (Price/Sales, P/S Ratio): The price of a share of a stock divided by sales per share, usually calculated using the latest year's earnings.3 ...

Price-to-Sales
The most basic ratio of all is the P/S ratio, which is the current price of the stock divided by sales per share.

Price-to-sales ratio (P/S)
The ratio of a stock's latest closing price divided by revenue per share.

price-to-sales ratio - a company's stock price divided by its annual sales.
put - an option contract that gives the holder the right to sell the underlying security at a specific price for a specific period of time. Puts can be bought or sold.

Price-To-Sales Ratio (in accounting)
Financial Highlight (in accounting)
Alco Standard Corporation
Comtech Telecommunications Corp.

price-to-sales ratio
Similar to P/E ratio, the price-to-sales ratio compares a stock's current share price to its company's sales per share.
price discovery ...

Using Capital IQ, an institutional database, I ranked the 1999 stock universe by price-to-sales, price-to-earnings, and price-to-book multiples, and ordered the stocks by their combined rankings.

Price to book ratio is also tied to Return on Equity (equal to net profit divided by book value) in the same way that price-to-sales is tied to Net Margin (equal to net income divided by sales) .

Every so often, MagicDiligence compiles a list of Magic Formula® Investing (MFI) stocks sorted by their dividend yield, price-to-sales ratio, and price-to-book ratio for investors that like to use those metrics.

Bloomberg notes that Zynga has given itself a substantially larger price-to-sales ratio than some of its primary competitors, but this still compares favorably with other IPOs seen so far this year.

For companies that don't have earnings, such as promising tech firms, some analysts focus on additional valuation methods, such as price-to-sales ratio.

Small timers don't want price-to-sales ratios and discounted cash flow analyses. Just tell me where the stock will be in 12 months! Well, you get what you pay for. Don't expect the quality of a filet mignon in a fast food burger.

See also: Sales, Stock, Share, Ratio, Market