Price To Sales Ratio (P/S Ratio) Calculator

Calculate the price to sales ratio and revenue per share of a company.

Price To Sales Ratio Formula

$8800 / $1300 = 6.7692 The price to sales ratio is calculated by dividing the price per share ($8800) by revenue per share ($1300).

Revenue Per Share Formula

$14,000 / $9,400 = 1.4894 This result represents the revenue per share of a company, calculated by dividing total sales ($14,000) by the number of shares outstanding ($9,400), resulting in a revenue per share value.

Meaning

The Price to Sales Ratio (P/S Ratio) is a valuation metric that measures the relative value of a company's stock compared to its sales performance. It provides an indication of whether a company's stock price is overvalued, undervalued, or fairly valued based on its sales revenue. A lower P/S Ratio indicates that the stock price is relatively low compared to sales, while a higher P/S Ratio suggests that the stock price is relatively high compared to sales.