Price-to-Sales Ratio Calculator

About this calculator

The price-to-sales ratio (P/S) divides a company's market capitalization by its total revenue over a trailing period (usually the last twelve months), giving a rough measure of how much investors are paying for each dollar of sales. It's calculated as P/S = Market Cap ÷ Revenue, or equivalently share price divided by revenue per share.

Unlike the P/E ratio, P/S remains meaningful for companies with negative earnings — early-stage growth companies, biotech firms pre-profitability, or businesses in a cyclical downturn — since revenue is harder to manipulate than net income and rarely turns negative.

Equity analysts and portfolio managers use P/S to screen and compare companies within the same sector, retail investors evaluate growth stocks that aren't yet profitable, and value investors look for low P/S ratios as a potential signal of undervaluation relative to peers.