What is Price-to-Sales (P/S)?
Price-to-Sales (P/S) (also called ps ratio) — Market cap divided by revenue — a valuation multiple useful for companies with little or no profit yet, like early-stage growth firms.
In simple terms
A high P/S bakes in strong future growth expectations.
Why Price-to-Sales (P/S) matters when you invest
Understanding price-to-sales helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Price-to-Sales (P/S) — frequently asked questions
What is Price-to-Sales (P/S)?
Market cap divided by revenue — a valuation multiple useful for companies with little or no profit yet, like early-stage growth firms.
What does Price-to-Sales (P/S) mean in the stock market?
Market cap divided by revenue — a valuation multiple useful for companies with little or no profit yet, like early-stage growth firms. A high P/S bakes in strong future growth expectations.
Can you give an example of Price-to-Sales (P/S)?
A high P/S bakes in strong future growth expectations.
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