Equity Analysis: Price to Sales (P/S) Ratio
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Equity Analysis: Price to Sales (P/S) Ratio

Updated Sep 18, 2024

What you'll learn

  • Here we explore the calculation and interpretation of the price to sales ratio, and examine the benefits and drawbacks of the metric.
Course Description

The price to sales ratio compares the price of a stock to company sales per share. The P/S ratio tells us how much the market is willing to pay for each dollar of sales. Here we explore the calculation and interpretation of the price to sales ratio, and examine the benefits and drawbacks of the metric.