Price to Sales (P/S) Ratio

Premium

P/S = Market Price per Share / Sales per Share

P/S Positives

  • Sales can be more difficult for management to manipulate than earnings or book value.
  • While earnings can be negative, sales are never negative.
  • Sales can be more consistent than earnings.
  • P/S can be useful for analyzing companies with no earnings, are cyclical, or have reached maturity.
  • Stock return trends can be analyzed within the context of differences in P/S values.
Continue Reading
Premium Content

This tutorial is a part of the course Equity Analysis Part 3. This is a premium course. The purchase options for the course are provided below. With this course, you get access to complete course content, source code, practical exercises, and all resources that are a part of the course.

Lifetime Premium Membership
$250
$179

Get unlimited access to all courses and premium content

Join Premium
What's Included:
Complete access to course content and updates
All downloadable resources
Interactive course quizzes
Practice exercises and sample code
Ad-free learning experience