Price-to-Sales Ratio Calculator
The Price-to-Sales Ratio Calculator values a company against its revenue. Enter market capitalisation and annual revenue to get the P/S ratio.
Formula
P/S Ratio = Market Capitalisation ÷ Annual Revenue
- Useful for valuing companies with little or no profit.
- Compare only within the same industry, since margins differ widely.
Rs 5,000,000 market cap, Rs 2,500,000 revenue
Inputs
- Market Capitalisation: 5000000 Rs
- Annual Revenue: 2500000 Rs
5,000,000 ÷ 2,500,000 = 2.0 times sales.
Frequently asked questions
When is the P/S ratio most useful?
For early-stage or cyclical companies that may not be profitable yet, where P/E is meaningless.