Part of the Series Guide to Financial Ratios What Is the Price-to-Sales (P/S) Ratio? The price-to-sales (P/S) ratio is a valuation ratio that compares a company’s stock price to itsrevenues. It is an indicator of the value that financial markets have placed on each dollar of a ...
What is the price-to-sales (P/S) ratio? The price-to-sales (P/S) ratio is afinancial metricthat provides a snapshot of a company’s market valuation in relation to its sales. It’s calculated by dividing a company’smarket capitalization(the total market value of its outstanding shares...
Understanding the Price-to-Sales Ratio The P/S ratio is an investment valuation ratio that shows a company'smarket capitalizationdivided by its sales for the previous 12 months. It's a measure of the value investors are receiving from a company's stock by indicating how much equity is requir...
What is the appropriate price-to-sales (P/S) multiple of a stock that has a retention ratio of 45%, a return on equity (ROE) of 14%, an earnings per share (EPS) of $5.25, sales per share of $245.54, an expected growth rate in dividends and earnings of 6.5%, and shareholders re...
Learn the definition of the cost of goods sold and the formula used to calculate it. Also, learn how the cost of goods sold is calculated using examples. Related to this Question What is price to sales ratio? What is sales revenue?
The price-to-earnings ratio is calculated by dividing the share price by earnings per share. The classification of P / E ratio mainly includes static P / E ratio, rolling P / E ratio and forecast P / E ratio. The price-to-earnings ratio is mainly applied to the valuation of companies...
What is price to sales ratio? What is dividend income? What is current ratio in business? What is turnover ratio? What is the EBITDA margin? What is negative marginal return? What is stock market performance? What is a leverage ratio in finance?
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An inventory-to-sales ratio—also known as a stock-to-sales ratio—is a metric that measures the amount of inventory you have compared to the number of orders being fulfilled. When you have just enough inventory to meet sales demands, this is reflected by a lower ratio—that’s what you...
The Sortino ratio serves a similar purpose to the more popular Sharpe ratio, but it focuses on downside risk.