Free Price to Sales Ratio Calculator
Evaluate Company Value Relative to Sales
The Price to Sales Ratio Calculator allows investors to measure how much they are paying for a company’s revenue. By inputting the company’s market capitalization and total annual sales, this tool calculates the P/S ratio, providing insight into whether a stock is overvalued or undervalued compared to its sales. This ratio is especially useful for evaluating startups or companies with minimal earnings, giving a clearer picture of financial health and potential growth. Regular use of this calculator can improve investment decisions, identify attractive investment opportunities, and simplify comparison across different companies or industries. Designed for both novice and experienced investors, the Price to Sales Ratio Calculator makes financial analysis straightforward and actionable.
Price to Sales Ratio Calculator
Calculate the Price to Sales (P/S) ratio of a stock.
Calculation Results
P/S Ratio
0.00
Calculation Breakdown
Price to Sales Ratio Calculator Guide
The Formula We Use
Market Capitalization = Share Price × Shares OutstandingPrice to Sales Ratio = Market Capitalization ÷ Total RevenuePer Share Basis = Share Price ÷ Sales per Share- Note: Lower P/S may imply undervaluation, higher may imply premium pricing.
Example Calculation (USD)
- Market Cap = 20 × 50,000,000 = $1,000,000,000
- P/S = 1,000,000,000 ÷ 600,000,000 = 1.67
- On a per share basis, Sales per Share = 600,000,000 ÷ 50,000,000 = $12.00, so P/S = 20 ÷ 12 = 1.67
How to Use This Calculator
- Enter Share Price, Shares Outstanding, and Total Revenue.
- We calculate Market Capitalization and divide it by Revenue.
- See the P/S Ratio to compare valuation across companies.
- Use sector benchmarks to judge if P/S looks high or low.
Tips to Interpret Price to Sales
- Sector comparison: Useful in sectors with negative earnings where P/E is not meaningful.
- Margins matter: Low margin firms may justify lower P/S multiples.
- Growth context: High growth companies may support higher P/S.
- Combine with EV/Sales: EV/Sales includes debt and cash for deeper insight.
- Time series: Track P/S over time for company valuation trends.
Educational content only. Not financial advice.
Benefits of Using
Price to Sales Ratio Calculator
Revenue Based Valuation
Compare stock price relative to company revenue efficiently.
Instant Calculation
Quickly determine P/S ratio with price and revenue inputs.
Easy for Beginners
Intuitive design for all levels of investors.
Accurate Metrics
Reliable results for smart investment decisions.
Global Stocks Support
Works for companies across various markets.
Data Security
All inputs processed locally; full privacy ensured.
Frequently Asked Questions
What is the Price to Sales (P/S) ratio?
P/S ratio compares stock price to company revenue per share.
Why use P/S ratio?
It helps evaluate stock value relative to company sales.
Can it handle international stocks?
Yes, just input the stock price and revenue in your currency.
Is it beginner friendly?
Yes, simple input fields and clear results.
Can I calculate historical P/S ratios?
Yes, input historical stock prices and revenue data.
Is my data secure?
Calculations are done locally; no data is saved.