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Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks.It is calculated by dividing the company's market capitalization by the revenue in the most recent year; or, equivalently, divide the per-share price by the per-share revenue.
During this time, the stock's price-to-sales (P/S) ratio increased from 2.6 to 3.1. The shares sell at a higher valuation than the overall stock market, with the S&P 500's P/S multiple standing at ...
The price-to-book ratio (P/B) is a commonly used benchmark comparing market value to the accounting book value of the firm's assets. The price/sales ratio and EV/sales ratios measure value relative to sales. These multiples must be used with caution as both sales and book values are less likely to be value drivers than earnings.
If shares in a company are publicly listed, the market price of the shares is used in certain financial ratios. Ratios can be expressed as a decimal value , such as 0.10, or given as an equivalent percentage value, such as 10%.
Below, you can see that the price-to-sales ratios for this group have increased tremendously since the AI craze started in January 2023: NVDA PS Ratio Chart. NVDA PS Ratio data by YCharts.
A stock's key valuations -- such as its price-to-earnings ratio or price-to-sales ratio-- don't decline after a stock split. Stock splits were more meaningful when investors could only buy single ...
P/B ratio. The price-to-book ratio, or P/B ratio, (also PBR) is a financial ratio used to compare a company's current market value to its book value (where book value is the value of all assets minus liabilities owned by a company). The calculation can be performed in two ways, but the result should be the same.
The current price-to-sales ratio of 6 represents a sizable 42% premium to the historical average. Besides selling at a sky-high valuation that fully prices in the extreme levels of optimism ...