What is P/S Ratio (Price-to-Sales Ratio)?
P/S ratio compares a company's stock price to its revenue per share. Useful for valuing companies that aren't yet profitable or have volatile earnings.
Formula
P/S Ratio = Market Cap ÷ Total Revenue
How to Interpret
Best used for early-stage growth companies or sectors with thin margins. Lower is generally better within the same industry.
Typical Ranges
Below 2x for most industries. Tech/SaaS companies may justify 5-15x.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by P/S Ratio.
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