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Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks.It is calculated by dividing the company's market capitalization by the revenue in the most recent year; or, equivalently, divide the per-share price by the per-share revenue.
To put it into perspective, Shopify has a price-to-sales (P/S) ratio of 16 and a price-to-earnings (P/E) ratio of 97. Amazon, on the other hand, has a P/S of 4 and a P/E of 48.
The company's stock has a price-to-sales ratio of 74 right now, which means investors are paying a hefty premium to own it. Nvidia, in contrast, has nearly everything AI investors want.
It currently trades at a price-to-sales (P/S) ratio of 18.4, which is more than double its average of 8 dating back to when the company went public in 2021. HOOD PS Ratio Chart.
The price-to-book ratio (P/B) is a commonly used benchmark comparing market value to the accounting book value of the firm's assets. The price/sales ratio and EV/sales ratios measure value relative to sales. These multiples must be used with caution as both sales and book values are less likely to be value drivers than earnings.
Stock valuation is the method of calculating theoretical values of companies and their stocks.The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged undervalued (with respect to their theoretical value) are bought, while stocks that are judged overvalued are sold, in the ...
SoundHound has become a top AI stock recently, as its share price soared by 777% over the past 12 months. ... its recent gains have given the stock a price-to-sales ratio of 74, ...
A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting , there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.