Price to Research Ratio

The Price to Research Ratio, or PR Ratio, is used to value a company against the amount it spends on R&D. It is calculated as Market Capitalisation divided by R&D Expenditure. This is measured on a TTM basis and the uses diluted shares outstanding.

Stockopedia explains P / R

The Price to Research ratio is of most importance in research based businesses, such as pharmaceutical companies and can be useful for identifying research-led businesses that are investing significantly in development.

However, a large amount of spending on does not necessarily mean future profits are assured.

This is measured on a TTM basis and uses diluted shares outstanding.

Ranks: Low to HighAvailable in screenerAvailable as Table Column

The 5 highest P / R Stocks in the Market

TickerNameP / RStockRank™
LON:WEIRWeir-5,754.771
LON:GCMGCM Resources-284.535
LON:GETBGetbusy-20.144
LON:STARStar Energy0.654
LON:INHCInduction Healthcare1.229