Valuation

Price / Sales (P/S)

How many dollars you pay for each dollar of the company’s annual revenue. It’s most useful for fast-growing or not-yet-profitable companies where earnings-based ratios like P/E don’t work, since every company has sales even if it has no profit. Lower is cheaper, but compare only within a sector — software trades at far higher P/S than retail because its sales are worth more per dollar.

Educational information, not investment advice. See it applied across the screener →