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Search for an ETF or holding
Search for an ETF or holding
Updated 1mo ago.
Updated 1mo ago.
Compares a stock's price to revenue (sales) per share. Useful for valuing unprofitable or volatile-earnings companies — startups, biotechs, cyclicals at trough. A low P/S can suggest undervaluation; a high P/S reflects growth or margin expectations. Compare within sector (SaaS have much higher P/S than retailers).
A company is worth $5B on the market and posts $1B in sales. Its P/S ratio is 5. Useful when the company isn't yet profitable and so has no P/E.
P/S values on revenue, handy for young companies, biotechs or cyclicals without stable profits. A low P/S can flag a bargain; a high P/S, strong expectations. SaaS firms carry far higher P/S than retailers — compare within the same sector.