Price to sales (PS) ratio

Price to sales (PS) ratio,

Definition of Price to sales (PS) ratio:

  1. Regarded by some stockmarket analysts as a better indicator of the growth potential of a firm, because sales revenue is more difficult to fudge by creative accounting than the earnings. Formula: Shares market price ÷ Sales revenue per share.

Meaning of Price to sales (PS) ratio & Price to sales (PS) ratio Definition