<P> Price -- sales ratio , P / S ratio , or PSR , is a valuation metric for stocks . It is calculated by dividing the company 's market cap by the revenue in the most recent year ; or , equivalently , divide the per - share stock price by the per - share revenue . Also , justified p / s is calculated as ( profit margin × payout × ( 1 + g ) / ( r − g ) ) . </P>
<P> Price -- sales ratio , P / S ratio , or PSR , is a valuation metric for stocks . It is calculated by dividing the company 's market cap by the revenue in the most recent year ; or , equivalently , divide the per - share stock price by the per - share revenue . Also , justified p / s is calculated as ( profit margin × payout × ( 1 + g ) / ( r − g ) ) . </P>
what is p s ratio in stock market
what is p s ratio in stock market
Price -- sales ratio
Price -- sales ratio