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 ...

Asset turnover ratio calculates efficiency of asset use to generate sales; formula: Total Sales ÷ Average Assets. Higher asset turnover indicates better capital use and operational efficiency ...

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 ...