What is the Price to Sales Ratio of a Stock?
What is the Price to Sales Ratio of a Stock? Welcome to our latest short [What is the Price to Sales Ratio of a Stock?] video 🎥, where we will be discussing an important metric for stock investors - the price to sales ratio. If you're new to the world of investing and want to make informed decisions, this video is for you. The price to sales ratio, or P/S ratio, is a valuation metric that compares a company's stock price to its revenue. It is calculated by dividing the stock price by the annual sales per share. For example, if a stock is trading at $20 and has $5 in annual sales per share, the P/S ratio would be 4. A P/S ratio of less than 1 is considered undervalued, while a ratio of more than 3 is considered overvalued. However, it's important to note that the P/S ratio should not be the sole factor in your investment decisions. It should be used in conjunction with other metrics and research. In this short [What is the Price to Sales Ratio of a Stock?] video 🎥, we...