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

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

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

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.

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