Divide the average share price by the total annual sales per share to get the price-to-sales ratio.
Formula:
P:S = ASP / TAS
| Variable | Meaning |
|---|---|
| P:S | Price-to-Sales Ratio |
| ASP | Average Share Price |
| TAS | Total Annual Sales per Share |
What is a Price to Sales Ratio Calculator?
A Price-to-Sales Ratio Calculator helps investors measure how much they are paying for every dollar of a company’s sales. It is a quick way to evaluate a stock’s valuation and compare companies within the same industry.
This tool is useful for those analyzing price-to-book ratios, price-to-earnings comparisons, and industry sales ratios. It helps determine if a stock is overvalued or undervalued based on its revenue. Many investors use this ratio alongside the sales ratio formula, sale rate calculator, and other valuation metrics to make informed decisions.
By using this calculator, you can easily assess a company’s financial health, compare it with industry benchmarks, and make smarter investment choices.
