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 price-to-sales (P/S) ratio is a profitability analysis tool used to compare companies and discover undervalued securities. P/S ratios can vary significantly between industries and companies so ...

PE ratio compares a company’s stock price with its earnings per share and helps determine if it is fairly priced. Many, or all, of the products featured on this page are from our advertising ...

Learn about our editorial policies The price-to-earnings (P/E) ratio ranks among Wall Street's most quoted statistics, revealing how much investors pay for each dollar of a company's profits.

As the quick ratio only wants to reflect the cash that could be on hand, the formula should not include any receivables that a company does not expect to receive. The quick ratio pulls all current ...

Investing in stocks based on valuation metrics is considered a smart strategy. The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the ...

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 ...