P/S Ratio in Stock Market Explained (Price-to-Sales Tutorial)
The Price-to-Sales ratio or P/S is calculated by taking the market cap and dividing it by the totals sales (revenue) over the past twelve months. Similar to P/E, the lower the P/S value, the better. Less than 1 is typically considered excellent, 1 to 3 is typically considered good, and above 3 is seen as overvalued. P/S should always be used in conjunction with other metrics and should be compared to P/S I companies within the same industry. It’s great for valuing growth stocks in my opinion and especially helpful in valuing companies that are not yet profitable since they do not have a P/E to reference. P/S does not take expenses and debt into account and does not tell you whether a company can be profitable in the future. I personally use P/S along with many other metrics to formulate a sold thesis based on fundamental analysis.
**I am not a financial advisor or crypto advisor; this video is meant to be used for entertainment purposes only and represents only my personal opinions**
Sources: Investopedia, Personal Experience
https://finance.yahoo.com/
Connect with us here:
https://promoambitions.com/
/ promoambitions
/ promoambitions
#StockMarket #Investing #Finance
Watch video P/S Ratio in Stock Market Explained (Price-to-Sales Tutorial) online without registration, duration hours minute second in high quality. This video was added by user PromoAmbitions 01 December 2021, don't forget to share it with your friends and acquaintances, it has been viewed on our site 641 once and liked it 27 people.