P/S
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Price-to-sales ratio |
|---|---|
| Categories | Business & 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.
Related abbreviations
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