Chroma Investing

Value Investing for beginning & small time investors and the value investing strategies of Graham & Klarman

Price to Sales Ratio (P/S) – Beginning Investor Terms

Price to sales is another metric that has been used to Determine if a stock’s prices is cheap relative to revenue. It is assumed to be better used comparitively within a specific industry. The equation is simple P/S= market cap/revenue for specified period of time such as annually or trailing twelve months (TTM).

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