What is Price to Sales?
The Price to Sales ratio (P/S) compares a company’s total market value to its annual revenue, useful for valuing companies that may not yet be profitable, where earnings-based ratios like P/E don’t apply.
The formula
P/S = Market Capitalization / Annual Revenue. A lower P/S ratio relative to industry peers can suggest a stock is undervalued relative to its sales, though this varies significantly by sector and growth rate.
This calculator is for general investment education, not investment advice.
Last reviewed August 2026