Price to Sales

The Price to Sales ratio is calculated as Current Market capitalization / Trailing 12 month sales.

If trailing 12 months sales are not available sales from the last financial year is used.

 

What the Price to Sales ratio tells you

The Price to Sales ratio tells you how much investors are willing to pay for each unit of sales.

A low value tells you the company is undervalued - in other words the company is valued low compared to its sales.

While a high ratio means a overvalued.

 

Good comparison ratio

Price to sales is a great ratio to value and compare companies with no profits.

 

How to use the ratio

Available as a screening ratio: Yes

Available as an output column ratio: Yes (Look for it in the Valuation tab)

 

How to select the most undervalued Price to Sales companies

To find companies with the lowest (most undervalued) Price to Sales ratio set the slider from 0% to 10%.

If you are looking for expensive or overvalued companies set the slider from 90% to 100%.

 

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