Market cap to sales ratio. Price to Sales (PS Ratio) Meaning.

Market cap to sales ratio by krishna. 26: 9. The formula to calculate the P/S ratio is: Price to sales ratio = Current Share Price / Sales per Share. In this article, learn about the price-to-sales ratio, its calculation, importance and limitations. Stock Name Country Market Cap PE Ratio; ARM Holdings (ARM) United Kingdom: $134. Nov 26, 2024 · By contrast, Air Cramer enjoyed a share price of $23 per share, a market cap of $6. If a company has massive revenue, it may still have low profits and no dividends and no expectations of growth. As a result, Amazon looks like a comparative bargain in 2003. It's worsened by 51. September 08, 2014 / 16:11 IST market cap to sales < 0. 82: 0. Hence, the price to sales ratio of Company X is $30 / $15 = 2x. P/S ratio for Walmart (WMT) P/S ratio as of January 2025 (TTM): 1. At the end of 2024 the company had a P/S ratio of 5. with value of 5. 634B: 76. The reason we use Market Capitalization for Price is that Sales is a company-wide metric, and not a per-share metric (like Share Price, or Earnings Per Share). According to Walmart's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 7. May 18, 2024 · Price-to-Sales Ratio = Total Company Market Capitalization / Total Company Sales. 9. According to Cisco's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 5. 84. Jun 9, 2022 · The price to sales ratio formula itself is simple, it is Price (Market Cap) divided by Sales (Revenue). At the end of 2024 the company had a P/S ratio of 11. 2 billion . The Sales To Market Value Ratio is a key ratio that allows investors to assess how efficiently a company generates sales revenue in relation to its overall market capitalization. According to Snowflake's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 18. 5 AND Price to book value < 2. Apr 19, 2023 · The price-to-sales (P/S) ratio is a metric that compares a company’s share price to the company’s revenues. Oct 1, 2024 · In a changing environment where tech giants hold sway and new startup ventures bring assets to the table, the capitalization-to-sales ratio stands out as a vital measure for investors to assess a company's potential, for growth and its actual worth going beyond mere current financial data. P/S ratio for Snowflake (SNOW) P/S ratio as of January 2025 (TTM): 15. Oct 17, 2023 · The Price-to-Sales (P/S) ratio is a valuation metric that connects a company's stock price to its per-share revenue. 81. S&P 500 Price to Sales Ratio chart, historic, and current data. Oct 17, 2024 · It is calculated by taking a company's market capitalization (the number of outstanding shares multiplied by the share price) and dividing it by the company's total sales—or revenue—over the past Learn how to calculate and interpret Market Capitalization to Sales Ratio, a valuation metric that compares the current price to its total sales. Market Cap to Sales of Bajaj Auto Ltd. According to Microsoft's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 11. Jun 27, 2024 · The EV/Sales ratio uses enterprise value and not market capitalization like the P/S ratio. Learn how to use it in your investment strategy. 5 billion. 89%: 2. by Manohar. The Buffett indicator (or the Buffett metric, or the Market capitalization-to-GDP ratio) [1] is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time. Understanding Price to Sales Ratio Definition and Calculation. P/S ratio history for Nasdaq from 2002 to 2024 Market cap/Sales <1 Get Email Updates Market cap/Sales <1. 0 are considered strong, but the interpretation varies by industry. The Interplay Between Market Cap and P/S Ratio. 50. P/S ratio history for Palantir from 2020 to 2024 Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. by Ravi. Mar 16, 2023 · Price-to-sales ratio formula To calculate a company's P/S ratio, use this formula: Price-to-sales ratio = (market capitalization / total revenue) Market capitalization describes the value of a company's outstanding shares on the stock market. 2 . One of them is by using the price-to-sales ratio. e. Sector Industry Market Cap Revenue; Auto/Tires/Trucks: Auto Manufacturers - Domestic: $38. At the end of 2024 the company had a P/S ratio of 31. The price-to-sales ratio (P/S) is computed by dividing a company’s market capitalization (number of outstanding shares multiplied by the share price) by its total sales or revenue for the previous 12 months. Some people think the EV/sales ratio is superior to the P/S ratio, but it involves more steps and is not always applicable. Apr 24, 2024 · In investing, the price-to-sales ratio (P/S ratio) is a crucial valuation metric that helps investors assess a company’s market value relative to its revenue. Enter a company's price per share and annual revenue per share, or total market cap and total top-line sales in one year to compute the company's PS ratio. Divide the stock’s price by sales per share to find P/S ratio on a per share basis. It is an indicator of the "value" investors are placing on the company revenue. 91. For example, suppose a company has, Market Capitalization = Rs. 332B: 178. P/S ratio history for PayPal from 2015 to 2024 According to Nasdaq's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 4. 3085 results found: Showing page 1 of 124 Industry Export Market Capitalization < Sales last year AND Profit growth > 0 AND Debt to equity < 0. Market Cap to Sales >2. We will take up the denominator first: Sales per share = Total Revenues / Total number of shares Dec 29, 2021 · The market cap divided by annual revenue is called the price/sales ratio (P/S). The price-to-sales ratio is a valuation metric used to compare a company’s stock price to its revenue. Find out the key highlights, examples, and range indicator of this ratio for stock analysis. 124B: Eli Lilly and Company, one of the world's largest pharmaceutical companies, boasts a diversified product profile including a solid lineup of new successful drugs. The price-to-sales ratio measures a company's stock price relative to its revenue. by mohammed. For more information on how our historical price data is adjusted see the Stock Price Adjustment Guide . Important Points about Market Cap to GDP Ratio. In general it is not very useful or precise metric of fair value of a company. Nov 13, 2015 · In terms of market cap to sales ratio, anything under 1 is considered as cheap and anything over 1 is considered as expensive. , a low stock price coupled with solid sales) that is as yet unrecognized by the investors. When the market cap is less than revenue, then the MC/R ratio is less than 1. 40 . The relationship between market capitalization (market cap) and the price-to-sales (P/S) ratio is a nuanced one, offering insights into both the valuation and the revenue-generating efficiency of a company. Market cap to sales ratio Get Email Updates Market cap to sales ratio. But Cramer owed a lot less—its net debt stood at Sector Industry Market Cap Revenue; Computer and Technology: Internet Services: $2333. 1. 32: AbbVie (ABBV) United States 2 days ago · The Price to Sales Ratio (PS Ratio) is calculated by taking the stock price / revenue per share (ttm). But the application of the market capitalization-to-revenue ratio, or cap-to-rev ratio, to the broad market might be a better 2 days ago · The Price to Sales Ratio (PS Ratio) is calculated by taking the stock price / revenue per share (ttm). 75. Nov 5, 2024 · Now, you’re ready to find the P/S ratio. 45. If the valuation ratio falls between 50% and 75%, the market can be said to be modestly undervalued. 394B: Alphabet Inc. According to Samsung's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 0. The Company provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce and hardware products through its subsidiaries. 2 billion = 2. According to Tesla's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 17. According to Netflix's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 16. The P/S ratio is considered a Jan 11, 2024 · Learn how to calculate and interpret the market cap to sales ratio, which measures how much price is paid for every rupee of sales. By comparing a company’s market capitalization to its annual sales, the P/S ratio provides insights into how much investors are willing to pay for each dollar of a company’s revenue. 602B: 107. 7. A lower P/S ratio could imply that the company is undervalued, while a higher P/S ratio might suggest overvaluation or high growth expectations. May 18, 2024 · Price-to-Sales Ratio = Total Company Market Capitalization / Total Company Sales. 09. Jul 9, 2024 · Due largely to how quickly Amazon was increasing its revenue, its price-to-sales ratio fell from a high of about 40 to 1. 56 indicates that its market capitalization is high compared to sales therefore it may be overvalued. Price-to-Sales Ratio = Market Value per Share / Sales per Share. P/S ratio history for XPeng from 2020 to 2024 Defination of Market Cap to Sales Ratio Market Capitalization to Sales Ratio is a valuation metric that compares the current price to its total sales. Determine the Market Capitalization: Multiply the number of shares of the company by its current stock price. P/S ratio for Nike (NKE) P/S ratio as of January 2025 (TTM): 2. 72 results found: Showing page 1 of 3 Industry Run this Query Show all Ratios P/S ratio for Samsung (005930. At the end of 2024 the company had a P/S ratio of 3. Market cap to sales ratio = Rs. 79. According to XPeng's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 2. 0. Stock Name Country Market Cap PE Ratio; Eli Lilly (LLY) United States: $738. The P/S ratio is considered a Jan 11, 2024 · The market cap to Sales ratio determines how much price is one willing to pay for every rupee of its sales. 18. 19 results found: Showing page 1 of 1 Industry May 24, 2024 · Price to sales ratio or P/S ratio. P/S ratio for Microsoft (MSFT) P/S ratio as of January 2025 (TTM): 12. P/S ratio history for McDonald from 2001 to 2024 Dec 6, 2024 · This is closely related to price-to-sales-ratio. 9805. P/S ratio for Pepsico (PEP) P/S ratio as of January 2025 (TTM): 2. 98% from its 12-month average of 8. According to Nike's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 7. 54. Apart from these ratios, we also look at valuation based on the discounted cash flow model and compare GM’s valuation with the industry and its peers. The price-to-sales ratio is a valuable financial valuation metric that compares a company's stock price or market capitalization to its sales or revenue. 46. It is calculated by dividing a company’s market capitalization by its total sales or revenue over the last 12 months. 6. According to McDonald's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is -39. In essence, the P/S ratio is calculated by taking the company's market capitalization and dividing it by the company's total revenue over a specified period, typically a fiscal year. It is calculated by dividing a company’s market capitalisation by its sales. The P/S ratio is straightforward to calculate, requiring only the company’s market capitalization and total sales figures. By dividing a company’s market capitalization by its total revenue, the price-to-sales ratio is calculated. P/S ratio for Netflix (NFLX) P/S ratio as of January 2025 (TTM): 9. P/S ratio for NVIDIA (NVDA) P/S ratio as of January 2025 (TTM): 30. What is price to sales ratio. According to Reliance Industries's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 1. ai as of January 08, 2025 is . The lower the Market Cap to Sales ratio, the better it is. Jun 8, 2023 · The P/S ratio can help identify potential turnaround candidates, as companies with low P/S ratios may be undervalued and poised for future growth. Dec 29, 2024 · The Market Cap to Sales ratio measures how much investors are willing to pay for each rupee of a company’s sales| Formula: Market Cap to Sales = Market Cap / Total Sales Sep 27, 2024 · It’s calculated by dividing a company’s market capitalization (the total market value of its outstanding shares) by its total sales or revenue for the past 12 months. 2. According to Alibaba's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 1. According to Roblox's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 213. Low Market Cap to Sales Market capitalization > 500 AND Price to earning < 15 AND Return on capital employed > 22%. But Cramer owed a lot less—its net debt stood at The Buffett indicator (or the Buffett metric, or the Market capitalization-to-GDP ratio) [1] is a valuation multiple used to assess how expensive or cheap the aggregate stock market is at a given point in time. The EV/sales ratio uses enterprise value instead of market cap, like the P/S ratio. It is calculated by dividing the enterprise value (Current Market Cap + Debt + Minority Interest + preferred shares – cash) by its annual sales. At the end of 2024 the company had a P/S ratio of 2. The Price to Sales ratio, also known as the P/S ratio, is a formula used to measure the total value that investors place on the company in comparison to the total revenue generated by the business. 2 days ago · The Price to Sales Ratio (PS Ratio) is calculated by taking the stock price / revenue per share (ttm). For instance, if Company Y According to PayPal's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 4. Enterprise value adds debt and preferred shares to the market cap and subtracts cash. 55 % this year. Sector Industry Market Cap Revenue; Medical: Large Cap Pharmaceutical: $738. Example - Suppose a company ABC has a price of ₹10 and the total number of outstanding shares being 100 Therefore, market cap = ₹10 x 100 = ₹1,000 Now suppose the company generates annual sales worth ₹500 Market Cap to Sales ratio = 1,000/500 = 2 Jan 17, 2024 · 9. Nov 30, 2022 · Market cap ratios greater than 2. Price to Sales Ratio Dec 2, 2014 · This ratio compares the stock price of the company with the company’s sales per share. Oct 28, 2019 · This finance video tutorial explains how to calculate the price to sales (P/S) ratio using market capitalization. At the end of 2024 the company had a P/S ratio of 29. ai (AI) over the last 10 years. 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. What is the Price to sales ratio? Price to sales ratio is the ratio of a company’s stock price to its total sales. May 10, 2024 · For those that aren't familiar with the price-to-sales ratio, it's simply a stock's current market cap divided by annual sales (in this case, forward 12-month consensus sales estimates). 3 days ago · By contrast, Air Cramer enjoyed a share price of $23 per share, a market cap of $6. 19. It is a On this page is a price-to-sales ratio calculator or P/S ratio calculator. Run this Query Show all Ratios Technical & Fundamental stock screener, scan stocks based on rsi, pe, macd, breakouts, divergence, growth, book vlaue, market cap, dividend yield etc. May 26, 2023 · In this guide, we will explore the Price to Sales ratio in detail, understand its calculation, and examine its significance in investment decisions. by Catchramses. 0, possibly indicating potential value (i. At the end of 2024 the company had a P/S ratio of 8. It also explains how to use the P/S ratio Jun 14, 2024 · Understanding the P/S Ratio: The P/S ratio is calculated by dividing the company's market capitalization by its total sales or revenue over a specified period. The current P/S ratio for Pfizer as of January 06, 2025 is . 98. KS) P/S ratio as of January 2025 (TTM): 1. It's calculated by multiplying the number of outstanding shares by their current market price. Oct 17, 2024 · It is calculated by taking a company's market capitalization (the number of outstanding shares multiplied by the share price) and dividing it by the company's total sales—or revenue—over the past The Market Capitalization to Sales Ratio is calculated as the Market Capitalization divided by Total Sales. At the end of 2024 the company had a P/S ratio of 12. 5 billion / Rs. 27. It shows how much investors are ready to pay per rupee of a company’s revenue. 53 . The Price-to-Sales (P/S) Ratio helps investors assess company valuations based on revenue. 8. 9 results found: Showing page 1 of 1 Industry Run this Query Show all Ratios Stock analysis and screening tool. P/S ratio for Cisco (CSCO) P/S ratio as of January 2025 (TTM): 4. The market cap-to-sales ratio helps assess valuation relative to top-line sales rather than bottom-line Historical PS ratio values for Pfizer (PFE) over the last 10 years. 31. Dec 17, 2023 · These ratios include market capitalization, price to revenue or sales (price to sales), price to total equity (price to book value), price to earnings, etc. 05. P/S ratio is also useful for comparing companies with different capital structures. It is used to compare companies in the same sector. Here are some advantages of Price-to-Sales Ratio: Simplicity. Jan 16, 2024 · Market Cap to Sales Ratio = Market Capitalization / Total Revenue . is engaged in technology business. Let us calculate the same for ARBL. 243 results found: Showing page 1 of 10 Industry Run this Query Show all Ratios Stock analysis and screening tool. 352B: $176. Run this Query Show all Ratios For the S&P 500 PS ratio in this post, the Price to Sales ratio is the weighted average trailing twelve-month sales over all component stocks – in the same proportion as the index's market capitalization. At the end of 2024 the company had a P/S ratio of 4. Oct 23, 2024 · The price to sales ratio of a company can be calculated in two ways: Divide the company’s market capitalisation by its total sales over a designated period (usually twelve months) Price to Sales Ratio = Market Capitalisation / Sales. This ratio provides insights into whether a company’s stock is overvalued or undervalued in the market, which can be crucial for making informed investment decisions. 95 . 48. 16 . P/S ratio for Eli Lilly (LLY) P/S ratio as of January 2025 (TTM): 17. The Price to Sales ratio formula is calculated by dividing the price of stock or market cap by the sales per share or total shares of the company. Historical PS ratio values for Pfizer (PFE) over the last 10 years. 5. 35. Oct 27, 2024 · The price to sales ratio (P/S ratio) is calculated by taking the market capitalization of a company and dividing it by the company’s total sales over a specified period, usually 12 months. . Industry Comparisons P/S ratio for Alibaba (BABA) P/S ratio as of January 2025 (TTM): 1. The resulting figure Oct 10, 2023 · Market capitalization to sales (market cap to sales or P/S ratio) is a financial ratio that measures the value of a company relative to its sales. 16. According to Eli Lilly's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 48. 3. The price to sales (P/S) ratio is a valuation ratio that measures a company’s stock price (market cap) compared to its revenues (also known as sales). May 20, 2024 · Find out how market capitalization affects valuation in fundamental analysis, which valuation ratios use market cap and how market cap affects strategy. The current P/S ratio for C3. P/S ratio history for Reliance Industries from 2014 to 2024 EV to Sales Ratio is the valuation metric used to understand the company's total valuation compared to its sale. The price to dales ratio is an easy way to understand the valuation of a company. Defination of Market Cap to Sales Ratio Market Capitalization to Sales Ratio is a valuation metric that compares the current price to its total sales. 96% Jul 1, 2009 · The price-to-sales ratio is a powerful measure of stock valuation. 502B: $307. 05 from previous market close. It indicates how the market is pricing every rupee sale of the company. At the end of 2024 the company had a P/S ratio of 1. At the end of 2024 the company had a P/S ratio of 19. 1 billion, and a P/E ratio of 20, twice that of Air Macklon. Annual Revenue = Rs. 32. Price to Sales = Price (or Market Cap) / Sales per share (or total sales) Total Sales can be found at the top line of the income statement of a company. Advantages of Price-to-Sales Ratio. One can calculate the price-to-sales ratio by dividing a company's market value per share by the sales per share. Of the Jun 21, 2019 · In this video we showcase the use of Market-cap to sales ratio used for finding recovery situations or for checking that a company's growth has not become ov Jun 24, 2024 · 3. The price to sales ratio is calculated by taking the market cap and dividing it by the total revenue for the past 12 months. Let is understand this with an example: Say the market cap of a Oct 19, 2024 · The Market Cap to Sales (MCTS) ratio compares a company’s market capitalization (the total value of its outstanding shares) to its annual revenue. It is an important ratio as it combines two very important aspects namely sales and the market price of the share. 51: Novo Nordisk (NVO) Denmark: $392. 26: PayPal Holdings (PYPL) Dec 7, 2023 · The price-to-sales (P/S) ratio is calculated by dividing the market capitalization of a company by its revenue over the past 12 months. P/S ratio for Tesla (TSLA) P/S ratio as of January 2025 (TTM): 13. 22 . Price to Sales (PS Ratio) Meaning. 03, a change of -0. 749B: 28. It is calculated by dividing the share price by the sales per share. P/S ratio for Roblox (RBLX) P/S ratio as of January 2025 (TTM): 11. The Price-to-Sales (P/S) ratio is a valuation metric that compares a company’s market capitalisation to its total revenue. 26. Market cap to sales Market capitalization > 500 AND Price to earning < 15 AND Return on capital employed > 22%. The Market Cap to GDP Ratio (also known as the Buffett Indicator) is a measure of the total value of all publicly-traded stocks in a country, divided by that country’s Gross Domestic Product . According to Pepsico's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 10. Final Thoughts. According to Wells Fargo's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 1. 56. Industry Name: Number of firms: Price/Sales: Net Margin: EV/Sales: Pre-tax Operating Margin: Advertising: 57: 1. But PE ratio can be manipulated as it takes into account non-cash items too. 08. Sep 1, 2010 · The ps ratio for Tesla (TSLA) stock is 12. This metric is convenient to understand how the market is pricing every rupee sale of the company. 06: Palo Alto Networks (PANW) United States: $118. The price-to-sales ratio shows the multiple sales that investors are willing to pay for each Historical PS ratio values for C3. According to Palantir's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 33. Let’s say the company is worth $10 billion according to the stock market (that’s the market cap), and it made $2 billion in sales (that’s the total Market Cap to Sales Get Email Updates Filter based on Market cap to sales ratio and PE. Market capitalization is the total value of all a company’s outstanding shares of stock. This ratio shows you how much money investors are paying for every dollar in sales. If you wish to interpret the market cap to GDP ratio, understand that in valuation the Price/Sales or EV/Sales are used as a metric measure of valuation. P/S ratio for Amazon (AMZN) P/S ratio as of January 2025 (TTM): 3. 4. At the end of 2024 the company had a P/S ratio of 0. Sep 8, 2014 · Market cap to sales ratio also known as price to sales ratio indicates how the market is valuing every rupee of the company‘s sales. This simplicity makes it accessible to both novice and seasoned investors alike. Oct 8, 2024 · You can calculate the price to sales ratio by using the following formula: price to sales ratio = price per share / sales per share. The lower the price to sales ratio, the more undervalued the company is, and the more qualified the stock is for a 'Buy'. Market Cap (as of May P/S ratio is calculated by dividing a company's market capitalization by its annual revenue. 634B: $34. This metric is considered a valuation metric that confirms whether the sales of a company justifies the stock price. There isn't necesarily an optimum PS ratio, since different industries will have different ranges of PS Ratios. 49 as of Tuesday, January 07 2025. 191B: Ford Motor Company designs, manufactures, markets and services cars, trucks, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles. The traditional P/S ratio is measured over one year of revenues – the trailing twelve months. The market cap-to-sales ratio helps assess valuation relative to top-line sales rather than bottom-line P/S ratio for Wells Fargo (WFC) P/S ratio as of January 2025 (TTM): 2. It is a high level of valuation. It used as a broad way of assessing whether the country’s stock market is overvalued or undervalued, compared to a historical average. 8874. 43. more . Jan 29, 2021 · But Does Market Cap-to-GDP Work as a Rule of Thumb? “The stock market capitalization-to-GDP ratio is a ratio used to determine whether an overall market is undervalued or overvalued compared to a historical average. (market cap and sales hovering around the norm for its industry). Market cap to sales ratio showcases how the market is valuing every rupee of the company’s sales. According to Amazon's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 9. Market Cap to Sale Ratio of BAJAJ-AUTO rose handsomely by 100. Current S&P 500 Price to Sales Ratio is 3. Run this Query Show all Ratios Mar 14, 2023 · A price-to-sales ratio analysis tells whether investors pay less or more for each dollar of sales or revenue. 22. 07. According to NVIDIA's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 52. The P/E ratio is more volatile than the P/S ratio. See examples, comparison with PE ratio and StockEdge app features. Why it’s called price to sales and not price to revenue, who knows, but revenue is simply the number of sales times the number of units sold so the name isn’t too far off. Price-to-sales ratio. This metric is commonly used in industries with low profit margins or negative earnings, where earnings-based metrics like price-to-earnings (P/E) ratio can not be used. The price to sales ratio is calculated by dividing the company’s total market cap by it’s total revenue. wbku gbkvf gcdvm obd wuof iaman vgwz qmfpgmg lymbg uecz