Price / Sales

Market capitalization divided by annual revenue.

How to read it

Usable before a company is profitable; says nothing about whether the sales are profitable.

How to use it

Values companies that are not yet profitable.

In Kereon

Kereon shows this figure as its data vendor publishes it and does not recompute it, so the vendor's exact inputs — which period's earnings, which balance sheet, which adjustments — are not visible here. The calculation above is the standard definition.

Also called: price / sales, p/s, price to sales, ev / sales.

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