A ratio of a company's share price to its
revenue from
sales over a given period of time, especially a
quarter or a
year.
Fundamentalists and
value investors see a low ratio as more positive because it indicates that the company has a great deal of revenue and a fair
price, while
technicians see a high ratio as more positive because it indicates that share price has increased and will likely continue to increase. In both cases, however, analysts believe the ratio reveals less than other ratios, such as the
price-earnings, because
price-to-sales does not account for
operating expenses in any way.