A P/S (or price-to-sales) ratio is a valuation tool is used by investors to determine how a company’s share price compares to its annual revenue. A company’s P/S ratio can also be thought of ...

The ratio of selling price to asking price is a useful metric not only in home sales but in any situation where value is determined by negotiations between buyers and sellers. How far the ratio ...

This metric is usually expressed as a percentage of sales and is also known as the gross margin ratio. A typical profit ... increases gross margins. High prices may reduce market share if fewer ...

From here, the formula for the PEG ratio is simple: Where: P/E is the price-to-earnings ratio (market price per share divided by earnings per share). EGR is the earnings growth rate over a ...

Or divide a stock's price by sales per share. A lower price-to-sales ratio suggests you've found a bargain, or a value stock. Industry consensus says lower-P/S stocks have better value because ...

The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the price-to-sales (P/S) ratio is more useful for evaluating stocks of companies that ...