Price-To-Sales Ratio - Price/Sales

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:

Price-To-Sales Ratio (Price/Sales)

The ratio can also be referred to as a stock's "PSR".

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.

Investment dictionary. . 2012.

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