Price to Sales Ratio

The Price to Sales Ratio, or PS Ratio, is a popular valuation ratio. It is the share price of a company divided by its sales per share. This is measured on a TTM basis and earnings are diluted and normalised.

Stockopedia explains P / S

Some argue that, since sales figures are less easy to manipulate than either earnings or book value, the price-to-sales ratio is a more reliable indicator of company value.

When EPS are negative or depressed temporarily the Price to Sales ratio can be a more useful indicator than the PE Ratio, and a low P/S can indicate a higher profit potential if the stock recovers. Some commentators have called it 'The King of the Value Factors' and look for P/S ratios of significantly less than 1.

It should be noted that the P/S ratio was abused during the dot com years to promote companies with no earnings or profits.

This is measured on a TTM basis and earnings are diluted and normalised.

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The 5 highest P / S Stocks in the Market

TickerNameP / SStockRank™
LON:PUALPuma Alpha VCT8,086.9619
LON:CELCeladon Pharmaceuticals3,095.905
LON:EUAEurasia Mining2,348.004
LON:VRCIVerici Dx1,816.6725
LON:PHEPowerhouse Energy1,435.837