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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Price to Sales Ratio

price to sales ratio, sometimes referenced as the P/S Ratio, is the perceived value of a stock by the market compared to the revenues of the company. The price to sales ratio is calculated by dividing the stock price by sales per share. Sales per share uses the weighted average of shares for the time period evaluated, which is generally one year.

Revenues and sales are synonymous terms and can be found on a company's income statement. The price of the stock is the price listed on the stock exchange, or secondary market.

p s

Here,p=share price,s=sales per share.

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