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Price to Sales (P/S) Ratio Calculator

Enter the current share price and revenue per share (RPS) to calculate the P/S ratio. We also show the implied sales yield.

Inputs

Results

P/S Ratio: N/A
Sales Yield: 0.00%

What is P/S (Price to Sales Ratio)?

The price to sales ratio (P/S or PS) is a stock’s price divided by its revenue per share. Analysts often rely on the P/S ratio to value companies with very low or volatile earnings or in the early stages of becoming profitable.

  • Higher P/S: Higher expectations for growth, or a higher valuation.
  • Lower P/S: Low expectations or possibly an undervalued stock.
  • Compare relatively: Assess against sector peers and the company’s historical range.

Formula

Price-to-Sales (P/S) Ratio = Price per Share ÷ Revenue per Share (RPS)

Sales Yield (%) = (RPS ÷ Price) × 100 = 100 ÷ P/S

Example: If a stock trades at $100 and RPS is $10, then P/S = 100 ÷ 10 = 10. Sales Yield = 10%.

Tips

  • Use forward revenue to calculate forward P/S, if available.
  • Look at margins, growth durability, and market structure in addition to valuation.
  • Extreme P/S levels can be driven by cyclical or one-time factors in revenue.