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jefra1965

08/17/18 4:21 PM

#18268 RE: bunky #18229

Price to Sales (P/S) Ratio is a valuation often used when companies are not showing any profits yet. Its also used when buying/selling a company to have an idea of its relative value to sales.

It is also a trailing twelve month valuation where Sales (S) represents gross sales for the past 4 quarters.

Price (P) is the Market Cap = Shares Out X Stock Price

When a company reports profits for the last 12 months then the PE valuation is commonly used.
https://www.investopedia.com/terms/p/price-to-salesratio.asp