sales ratio may also called as ________ ratio
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Price Sales Ratio PSR
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PRICE TO SALES RATIO
Sales ratio may also called as PRICE TO SALES ratio.
KEY TAKEAWAYS OF PRICE TO SALES RATIO :
* Investors use a P/S (or price-to-sales) ratio to measure how a company's share price compares to its yearly revenue. The P/S ratio of a corporation may also be thought of as how much investors are ready to pay for a stock per dollar of yearly sales of the underlying company.
* It is one of several criteria used by investors to assess equities and determine whether a certain stock is cheap or overpriced.
* A company's lack of earnings does not make it a bad investment. It's for this reason why the P/S ratio is so useful. It may be used to value and compare businesses based on revenue, even if they have yet to make a profit.
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