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Price to Sales Ratio (P/S)

Abbreviation
P/S
Parent term
Valuation
The Price to Sales Ratio is a measure of a stocks current market capitalization compared to historical sales.


Calculate the P/S Ratio
  • Divide the company's current market capitalization by the revenue in the most recent year

Using the P/S Ratio
  • The P/S ratio is not as useful when valuing companies in cyclical industries

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