What is a price-to-sales ratio?
by 
wickedwillie
ANSWERS: 2
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good sales mean good price
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A ratio for valuing a stock relative to its own past performance, other companies or the market itself. Price to sales is calculated by dividing a stock's current price by its revenue per share for the trailing 12 months: Share Price ____________ = PSR Revenue per Share The price-to-sales ratio can vary substantially across industries; therefore, it's useful mainly when comparing similar companies. Because it doesn't take any expenses or debt into account, the ratio is somewhat limited in the story it tells. http://www.investopedia.com/terms/p/price-to-salesratio.asp
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