Price to Sales Ratio Calculator
Calculate a company's price-to-sales (P/S) ratio. Enter the market capitalization and annual revenue to get an instant result.
Recommended Settings
Pro Tips
- •Price-to-sales ratio compares a company's total market value to its annual revenue, showing how much investors are paying per dollar of sales
- •A lower P/S ratio can suggest a stock is undervalued relative to its revenue, though this varies significantly by industry
- •P/S ratio is especially useful for valuing companies that aren't yet profitable, since it doesn't rely on earnings
- •Compare P/S ratios only within the same industry, since typical ratios vary widely between sectors like software and retail
Most Popular
Most users compare P/S ratio across similar companies within the same industry
When to Use This Tool
Estimate whether a stock is priced reasonably relative to its revenue.
Compare valuation across companies in the same industry using a revenue-based metric.
Screen for potentially undervalued stocks based on their price relative to sales.
Assess valuation for growth companies that don't yet have positive earnings.
How It Works
Divide the company's market capitalization (share price × total shares outstanding) by its annual revenue
The result shows how many dollars investors are paying for each dollar of the company's sales
100% Private
Files never leave your device. All processing happens locally in your browser.
Lightning Fast
Powered by Client-side JavaScript arithmetic for optimal performance on modern browsers.
Open Source
Built with verified, open-source libraries. Fully transparent.
Frequently Asked Questions
What's a good P/S ratio?
This varies enormously by industry - high-growth software companies often trade at much higher P/S ratios than mature retail or industrial companies. Compare only within the same sector.
Why use P/S instead of P/E ratio?
P/S ratio is useful for companies that aren't yet profitable (and therefore have no meaningful P/E ratio), since revenue is generally positive even when earnings aren't.
Is my data sent to a server?
No. All calculations happen instantly in your browser using JavaScript. Nothing you enter is transmitted anywhere.
Can I use share price and revenue per share instead of market cap and total revenue?
Yes - as long as you use consistent per-share or total figures for both numbers, the resulting ratio will be the same.