P/S ratio

Valuation

Definition

Price-to-Sales. Market cap divided by revenue. Useful for unprofitable growth companies where P/E doesn't work.

Formula

P/S = Market cap / Revenue

Example

$10B market cap / $2B revenue = P/S of 5x.

Related valuation terms

Anonymous unless you choose otherwise. No name, no cookies. Leave an email only if you want a reply.

Describe the bug

Your email (optional)