P/S

Business & Finance abbreviation · Stock Market & Investing

P/S
Stands forPrice-to-sales ratio
CategoriesBusiness & Finance

P/S stands for Price-to-sales ratio, a stock market & investing abbreviation.

Valuation ratio equal to a company's market capitalization divided by its annual revenue, or share price divided by sales per share. It is used to value companies with little or no profit, such as early-stage technology firms.

Example: With no earnings yet, the startup trades at a P/S of 12, roughly double the sector median.

Usage notes

Because revenue is harder to manipulate than earnings, P/S is considered more stable, but it ignores profitability and debt. Many analysts prefer EV/sales, which accounts for capital structure. Ratios vary widely by industry, so comparisons are useful only among peers.

More stock market & investing abbreviations

  • NYSE – New York Stock Exchange
  • OI – Open interest
  • OTC – Over-the-counter
  • OTM – Out of the money
  • P/B – Price-to-book ratio
  • P/E – Price-to-earnings ratio
  • PDT – Pattern day trader
  • PEG – Price/earnings-to-growth ratio
  • PFOF – Payment for order flow
  • PT – Price target
  • RIA – Registered investment adviser
  • RSI – Relative strength index

See all 110 stock market & investing abbreviations →