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Price Sales Ratio Formula

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Price to Sales Ratio is a measure of how a company's stock price affects sales revenue. Check FAQs

PS = \frac{P}{\frac{S}{MC}}

PS - Price to Sales Ratio?P - Market Price per Share?S - Total Sales for Past 12 Months?MC - Market Cap?

Price Sales Ratio Example

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Here is how the Price Sales Ratio equation looks like with Values.

Here is how the Price Sales Ratio equation looks like with Units.

Here is how the Price Sales Ratio equation looks like.

2.8091 = \frac{50}{\frac{4.6E+6}{256300}}

2.8091 = \frac{50}{\frac{4.6E+6}{256300}}

2.8091 = \frac{50}{\frac{4.6E+6}{256300}}

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Price Sales Ratio Solution

Follow our step by step solution on how to calculate Price Sales Ratio?

FIRST Step Consider the formula

PS = \frac{P}{\frac{S}{MC}}

Next Step Substitute values of Variables

∴

PS = \frac{50}{\frac{4.6E+6}{256300}}

Next Step Prepare to Evaluate

∴

PS = \frac{50}{\frac{4.6E+6}{256300}}

Next Step Evaluate

∴

PS = 2.80907496711968

LAST Step Rounding Answer

∴

PS = 2.8091

Price Sales Ratio Formula Elements

Variables

Price to Sales Ratio

Price to Sales Ratio is a measure of how a company's stock price affects sales revenue.

Symbol: PS

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Price to Sales Ratio

Market Price per Share

Market Price per Share is simply the dollar amount that investors are willing to pay for one share of the company's stock.

Symbol: P

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Market Price per Share

Total Sales for Past 12 Months

Total Sales for Past 12 Months is the gross sales for 12 months prior to the date of calculation.

Symbol: S

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Sales for Past 12 Months

Market Cap

Market capitalization, commonly called a market cap, is the market value of a publicly-traded company's outstanding shares.

Symbol: MC

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Market Cap

Other formulas in Solvency and Stock Ratio category

Go Debt to worth ratio

DW = \frac{TL}{NW}

Go Working capital

NWC = CA - CL

Go Accounts Payable Turnover Ratio

APTR = \frac{TSP}{\frac{BAP + EAP}{2}}

Go Earnings per share

EPS = \frac{E}{TSO}

How to Evaluate Price Sales Ratio?

Price Sales Ratio evaluator uses Price to Sales Ratio = Market Price per Share/(Total Sales for Past 12 Months/Market Cap) to evaluate the Price to Sales Ratio, Price Sales Ratio is a measure of how a company's stock price affects sales revenue. Price to Sales Ratio is denoted by PS symbol.

How to evaluate Price Sales Ratio using this online evaluator? To use this online evaluator for Price Sales Ratio, enter Market Price per Share (P), Total Sales for Past 12 Months (S) & Market Cap (MC) and hit the calculate button.

FAQs on Price Sales Ratio

What is the formula to find Price Sales Ratio?

The formula of Price Sales Ratio is expressed as Price to Sales Ratio = Market Price per Share/(Total Sales for Past 12 Months/Market Cap). Here is an example- 2.809075 = 50/(4562000/256300).

How to calculate Price Sales Ratio?

With Market Price per Share (P), Total Sales for Past 12 Months (S) & Market Cap (MC) we can find Price Sales Ratio using the formula - Price to Sales Ratio = Market Price per Share/(Total Sales for Past 12 Months/Market Cap).

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Price Sales Ratio Formula

Price Sales Ratio Example

Price Sales Ratio Solution

Price Sales Ratio Formula Elements

Other formulas in Solvency and Stock Ratio category

How to Evaluate Price Sales Ratio?

FAQs on Price Sales Ratio

Variable Name