Generally, a smaller price-to-sales (P/S) ratio (i.e. less than 1.0) is usually thought to be a better investment since the investor is paying less for each unit of sales.

The price-to-sales ratio is a convenient tool to gauge the value of stocks incurring losses or in an early development cycle. Stocks like JAKK, AGR, PCB, FIHL and GBX hold promise.

The price-to-sales ratio is a convenient tool to gauge the value of stocks incurring losses or in an early development cycle. Stocks like AGR, SMP, GBX and PFE hold promise.

Due largely to how quickly Amazon was increasing its revenue, its price-to-sales ratio fell from a high of about 40 to 1.8. As a result, Amazon looks like a comparative bargain in 2003.

Sales of listed private non-financial firms rose 7.2% in FY25, up from 4.7% last year, per RBI data. Growth was driven by ...

If we have a look at, say, chip designer ARM Holdings, we find a company with a Price to Sales ratio of 4.6, which is about 9 times Tesco’s figure. The reason for the difference is twofold.