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Price-to-Sales Ratio (Price/Sales)

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Price-to-Sales Ratio (Price/Sales)
A ratio for valuing a stock relative to its own past performance, other companies or the market itself. Price to sales is calculated by dividing a stock's current price by its revenue per share. Also known as "PSR".

Notes:
The price-to-sales ratio can vary substantially across industries therefore, it's useful mainly when comparing similar companies. Because it doesn't take into account any expenses or debt, the ratio is somewhat limited in the story it tells.


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