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Price-to-Sales Ratio

Trading Term

The Price-to-Sales (P/S) Ratio measures the Market Value per Share of a firm against its Sales Per Share for the trailing twelve months. This valuation metric aids in stock analysis by determing whether the asset is undervalued or overvalued. The Price-to-Sales (P/S) Ratio indicates the dollar amount one must pay for a dollar of sales generated by the firm. Price-to-Sales (P/S) Ratio = Market Value per Share / Sales Per Share TTM

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