A P/S (or price-to-sales) ratio is a valuation tool is used by investors to determine how a company’s share price compares to its annual revenue. A company’s P/S ratio can also be thought of ...

The price-to-sales (P/S) ratio is a profitability analysis tool used to compare companies and discover undervalued securities. P/S ratios can vary significantly between industries and companies so ...

Learn about our editorial policies The price-to-earnings (P/E) ratio ranks among Wall Street's most quoted statistics, revealing how much investors pay for each dollar of a company's profits.

A company's price-to-book ratio can indicate whether the current stock price is overvalued or undervalued compared to others in the same sector.

We’ll take a deeper dive into the net profit margin formula, including both hypothetical ... Total Revenue = The total sales or revenue generated by the company. Pictured above is the financial ...

The formula for calculating P ... While it's not the only ratio that can be used (there are others, like price-book and price-sales), it is one of the simplest ratios to determine and use in ...

In terms of the forward 12-month price/sales, the stock is trading at 2.58X, higher than the auto sector’s 1.35X. The premium can be attributed to CVNA’s strong retail sales, strategic ...

Or divide a stock's price by sales per share. A lower price-to-sales ratio suggests you've found a bargain, or a value stock. Industry consensus says lower-P/S stocks have better value because ...